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

  • VCEL has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $21.3 million.
  • VCEL has traded 286,231 shares today.
  • VCEL is trading at 3.69 times the normal volume for the stock at this time of day.
  • VCEL is trading at a new high 3.54% above yesterday's close.

'Strong on High Relative Volume' stocks are worth watching because major volume moves tend to indicate underlying activity such as M&A events, material stock news, analyst upgrades, insider buying, buying from 'superinvestors,' or that hedge funds and momentum traders are piling into 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. 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 VCEL:

Vericel Corporation, a commercial-stage biopharmaceutical company, focuses on developing patient-specific expanded cellular therapies for use in the treatment of patients with severe diseases and conditions. Currently there are 2 analysts that rate Vericel a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Vericel has been 806,900 shares per day over the past 30 days. Vericel has a market cap of $103.0 million and is part of the health care sector and drugs industry. The stock has a beta of 0.14 and a short float of 0.3% with 0.02 days to cover. Shares are up 60.1% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Vericel as a sell. Among the areas we feel are negative, one of the most important has been an overall disappointing return on equity.

Highlights from the ratings report include:
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Biotechnology industry and the overall market, VERICEL CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • 48.17% is the gross profit margin for VERICEL CORP which we consider to be strong. It has increased significantly from the same period last year. Regardless of the strong results of the gross profit margin, the net profit margin of -39.04% is in-line with the industry average.
  • Net operating cash flow has significantly increased by 91.47% to -$0.72 million when compared to the same quarter last year. In addition, VERICEL CORP has also vastly surpassed the industry average cash flow growth rate of 27.36%.
  • VCEL's debt-to-equity ratio is very low at 0.00 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 2.85, which clearly demonstrates the ability to cover short-term cash needs.
  • Looking at where the stock is today compared to one year ago, we find that it is higher, and it has outperformed the rise in the S&P 500 over the same period. Turning our attention to the future direction of the stock, we do not believe this stock offers ample reward opportunity to compensate for the risks, despite the fact that it rose over the past year.

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