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

  • PRTA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $21.0 million.
  • PRTA has traded 95,706 shares today.
  • PRTA is trading at 3.28 times the normal volume for the stock at this time of day.
  • PRTA is trading at a new low 11.29% 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 PRTA:

Prothena Corporation plc, a late-stage clinical biotechnology company, focuses on the discovery, development, and commercialization of protein immunotherapy programs for the treatment of diseases that involve amyloid or cell adhesion in Ireland. Currently there are 5 analysts that rate Prothena a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Prothena has been 570,700 shares per day over the past 30 days. Prothena has a market cap of $1.1 billion and is part of the health care sector and drugs industry. The stock has a beta of 2.16 and a short float of 14.7% with 3.31 days to cover. Shares are down 53.1% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Prothena as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow and feeble growth in its earnings per share.

Highlights from the ratings report include:
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Biotechnology industry. The net income has significantly decreased by 74.3% when compared to the same quarter one year ago, falling from -$13.18 million to -$22.98 million.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Biotechnology industry and the overall market, PROTHENA CORP PLC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has decreased to -$16.91 million or 37.90% when compared to the same quarter last year. Despite a decrease in cash flow of 37.90%, PROTHENA CORP PLC is in line with the industry average cash flow growth rate of -42.22%.
  • PROTHENA CORP PLC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from 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, PROTHENA CORP PLC continued to lose money by earning -$0.12 versus -$2.22 in the prior year. For the next year, the market is expecting a contraction of 2137.5% in earnings (-$2.69 versus -$0.12).
  • PRTA, with its very weak revenue results, has greatly underperformed against the industry average of 6.9%. Since the same quarter one year prior, revenues plummeted by 71.1%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.

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