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

  • CYTR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $2.7 million.
  • CYTR has traded 555,367 shares today.
  • CYTR is trading at 2.46 times the normal volume for the stock at this time of day.
  • CYTR is trading at a new low 3.03% 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 CYTR:

CytRx Corporation operates as a biopharmaceutical research and development company specializing in oncology. Currently there are 4 analysts that rate CytRx a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for CytRx has been 662,400 shares per day over the past 30 days. CytRx has a market cap of $198.1 million and is part of the health care sector and drugs industry. The stock has a beta of 2.39 and a short float of 17.8% with 12.91 days to cover. Shares are up 12.6% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates CytRx 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, generally disappointing historical performance in the stock itself 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 66.0% when compared to the same quarter one year ago, falling from -$13.44 million to -$22.30 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, CYTRX CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has decreased to -$13.50 million or 14.48% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • The share price of CYTRX CORP has not done very well: it is down 15.41% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • CYTRX CORP's earnings per share declined by 41.7% in the most recent quarter compared to the same quarter a year ago. The company has reported a trend of declining earnings per share over the past year. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, CYTRX CORP reported poor results of -$0.97 versus -$0.54 in the prior year. This year, the market expects an improvement in earnings (-$0.96 versus -$0.97).

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