Trade-Ideas LLC identified Nektar Therapeutics ( NKTR) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Nektar Therapeutics as such a stock due to the following factors:
- NKTR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $12.9 million.
- NKTR has traded 121,667 shares today.
- NKTR is trading at 5.26 times the normal volume for the stock at this time of day.
- NKTR is trading at a new low 8.08% 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. EXCLUSIVE OFFER: Get the inside scoop on opportunities in NKTR with the Ticky from Trade-Ideas. See the FREE profile for NKTR NOW at Trade-Ideas More details on NKTR: Nektar Therapeutics develops drug candidates that utilize its PEGylation and polymer conjugate technology platforms in the United States. Its product pipeline includes drug candidates in therapeutic areas comprising oncology, pain, anti-infectives, and immunology. Currently there are 7 analysts that rate Nektar Therapeutics a buy, 1 analyst rates it a sell, and none rate it a hold. The average volume for Nektar Therapeutics has been 1.3 million shares per day over the past 30 days. Nektar has a market cap of $2.2 billion and is part of the health care sector and drugs industry. The stock has a beta of 1.04 and a short float of 17.1% with 16.61 days to cover. Shares are down 7.5% year-to-date as of the close of trading on Tuesday. EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE. TheStreetRatings.com Analysis: TheStreet Quant Ratings rates Nektar Therapeutics as a sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, disappointing return on equity, weak operating cash flow and generally high debt management risk. Highlights from the ratings report include:
- NEKTAR THERAPEUTICS's earnings per share declined by 14.3% in the most recent quarter compared to the same quarter a year ago. Earnings per share have declined over the last year. We anticipate that this should continue in the coming year. During the past fiscal year, NEKTAR THERAPEUTICS reported poor results of -$0.61 versus -$0.45 in the prior year. For the next year, the market is expecting a contraction of 69.7% in earnings (-$1.04 versus -$0.61).
- 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 Pharmaceuticals industry and the overall market, NEKTAR THERAPEUTICS's return on equity significantly trails that of both the industry average and the S&P 500.
- Net operating cash flow has significantly decreased to -$75.11 million or 204.98% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- The debt-to-equity ratio is very high at 57.08 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Despite the company's weak debt-to-equity ratio, the company has managed to keep a very strong quick ratio of 5.37, which shows the ability to cover short-term cash needs.
- The change in net income from the same quarter one year ago has significantly exceeded that of the Pharmaceuticals industry average, but is less than that of the S&P 500. The net income has decreased by 18.5% when compared to the same quarter one year ago, dropping from -$45.68 million to -$54.14 million.
- You can view the full Nektar Therapeutics Ratings Report.
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