Rockwell Medical (RMTI) Is Strong On High Volume Today

Trade-Ideas LLC identified Rockwell Medical ( RMTI) as a strong 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 $3.0 million.
  • RMTI has traded 107,319 shares today.
  • RMTI is trading at 3.62 times the normal volume for the stock at this time of day.
  • RMTI is trading at a new high 6.01% 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 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 598,900 shares per day over the past 30 days. Rockwell Medical has a market cap of $363.8 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 26.50 days to cover. Shares are down 28.5% year-to-date as of the close of trading on Tuesday.

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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, weak operating cash flow and generally disappointing historical performance in the stock itself.

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.
  • RMTI has underperformed the S&P 500 Index, declining 18.96% from its price level of one year ago. 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.
  • 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.
  • The revenue fell significantly faster than the industry average of 29.7%. 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.

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