Trade-Ideas LLC identified Rockwell Medical ( RMTI) as a weak on high relative volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Rockwell Medical as such a stock due to the following factors:
- RMTI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $2.9 million.
- RMTI has traded 166,236 shares today.
- RMTI is trading at 4.65 times the normal volume for the stock at this time of day.
- RMTI is trading at a new low 15.08% 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 RMTI with the Ticky from Trade-Ideas. See the FREE profile for RMTI NOW at Trade-Ideas More details on RMTI: Rockwell Medical, Inc. operates as an integrated biopharmaceutical company in the United States and internationally. It offers products and services for the treatment of end-stage renal disease, chronic kidney disease, iron deficiency, secondary hyperparathyroidism, and hemodialysis. Currently there are no analysts that rate Rockwell Medical a buy, 2 analysts rate it a sell, and 3 rate it a hold. The average volume for Rockwell Medical has been 597,800 shares per day over the past 30 days. Rockwell Medical has a market cap of $475.1 million and is part of the health care sector and drugs industry. The stock has a beta of 2.57 and a short float of 22% with 27.72 days to cover. Shares are down 12.6% 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 Rockwell Medical as a sell. The company's weaknesses can be seen in multiple areas, such as its poor profit margins and weak operating cash flow. Highlights from the ratings report include:
- The gross profit margin for ROCKWELL MEDICAL INC is rather low; currently it is at 16.06%. It has decreased from the same quarter the previous year. Along with this, the net profit margin of -40.82% is significantly below that of the industry average.
- Net operating cash flow has significantly decreased to -$2.70 million or 115.38% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Health Care Equipment & Supplies industry and the overall market, ROCKWELL MEDICAL INC's return on equity significantly trails that of both the industry average and the S&P 500.
- After a year of stock price fluctuations, the net result is that RMTI's price has not changed very much. Although its weak earnings growth may have played a role in this flat result, don't lose sight of the fact that the performance of the overall market, as measured by the S&P 500 Index, was essentially similar. 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.
- The revenue fell significantly faster than the industry average of 28.5%. Since the same quarter one year prior, revenues slightly dropped by 2.2%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- You can view the full Rockwell Medical Ratings Report.
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