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

  • VNDA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $3.5 million.
  • VNDA has traded 101,829 shares today.
  • VNDA is trading at 6.39 times the normal volume for the stock at this time of day.
  • VNDA is trading at a new high 3.07% 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 VNDA:

Vanda Pharmaceuticals Inc., a biopharmaceutical company, focuses on the development and commercialization of products for the treatment of central nervous system disorders. Currently there are 3 analysts that rate Vanda Pharmaceuticals a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Vanda Pharmaceuticals has been 516,800 shares per day over the past 30 days. Vanda has a market cap of $407.3 million and is part of the health care sector and drugs industry. The stock has a beta of 1.65 and a short float of 14.9% with 16.83 days to cover. Shares are up 1.4% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Vanda Pharmaceuticals as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, 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 121.2% when compared to the same quarter one year ago, falling from $69.72 million to -$14.80 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, VANDA PHARMACEUTICALS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The share price of VANDA PHARMACEUTICALS INC has not done very well: it is down 7.72% 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.
  • VANDA PHARMACEUTICALS INC 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. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, VANDA PHARMACEUTICALS INC swung to a loss, reporting -$0.94 versus $0.30 in the prior year. This year, the market expects an improvement in earnings (-$0.81 versus -$0.94).
  • The gross profit margin for VANDA PHARMACEUTICALS INC is currently very high, coming in at 81.13%. 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 -46.46% is in-line with the industry average.

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