TrovaGene (TROV) Is Weak On High Volume Today

Trade-Ideas LLC identified TrovaGene ( TROV) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified TrovaGene as such a stock due to the following factors:

  • TROV has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $6.4 million.
  • TROV has traded 1.0 million shares today.
  • TROV is trading at 25.64 times the normal volume for the stock at this time of day.
  • TROV is trading at a new low 16.34% below yesterday's close.

'Weak on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as material stock news, analyst downgrades, insider selling, selling from 'superinvestors,' or that hedge funds and traders are piling out of a stock ahead of a catalyst. Regardless of the impetus behind the price and volume action, when a stock moves with strength and volume it can indicate the start of a new trend on which early investors can capitalize (or avoid losses by trimming weak positions). In the event of a well-timed trading opportunity, combining technical indicators with fundamental trends and a disciplined trading methodology should help you take the first steps towards investment success.

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More details on TROV:

Trovagene, Inc., a molecular diagnostic company, focuses on the development and commercialization of proprietary urine-based cell-free molecular diagnostic technology for use in disease detection and monitoring across various medical disciplines. Currently there are 5 analysts that rate TrovaGene a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for TrovaGene has been 381,300 shares per day over the past 30 days. TrovaGene has a market cap of $88.9 million and is part of the health care sector and health services industry. The stock has a beta of -0.02 and a short float of 14.1% with 2.67 days to cover. Shares are up 5.9% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates TrovaGene as a sell. The company's weaknesses can be seen in multiple areas, such as its weak operating cash flow, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

Highlights from the ratings report include:
  • Net operating cash flow has significantly decreased to -$5.13 million or 50.61% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • TROV's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 44.33%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • TROVAGENE INC has improved earnings per share by 17.9% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, TROVAGENE INC reported poor results of -$0.76 versus -$0.71 in the prior year. For the next year, the market is expecting a contraction of 36.8% in earnings (-$1.04 versus -$0.76).
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Biotechnology industry and the overall market, TROVAGENE INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Along with the stagnant revenue growth, the company underperformed against the industry average of 13.6%. Since the same quarter one year prior, revenues have remained constant. The stagnant revenue growth has not kept the company from increasing earnings per share.

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