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

  • INFI has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $5.0 million.
  • INFI has traded 516,780 shares today.
  • INFI is trading at 5.48 times the normal volume for the stock at this time of day.
  • INFI is trading at a new low 3.33% 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 INFI:

Infinity Pharmaceuticals, Inc., a drug discovery and development company, discovers, develops, and delivers medicines to patients with difficult-to-treat diseases. INFI has a PE ratio of 2. Currently there are 3 analysts that rate Infinity Pharmaceuticals a buy, 1 analyst rates it a sell, and 3 rate it a hold.

The average volume for Infinity Pharmaceuticals has been 795,900 shares per day over the past 30 days. Infinity has a market cap of $67.2 million and is part of the health care sector and drugs industry. The stock has a beta of 2.08 and a short float of 11% with 1.05 days to cover. Shares are down 80.9% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Infinity Pharmaceuticals as a sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:
  • 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, INFINITY PHARMACEUTICALS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • INFI's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 55.56%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • INFINITY PHARMACEUTICALS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, INFINITY PHARMACEUTICALS INC reported poor results of -$2.65 versus -$0.45 in the prior year. This year, the market expects an improvement in earnings ($0.52 versus -$2.65).
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Biotechnology industry. The net income increased by 56.4% when compared to the same quarter one year prior, rising from -$93.30 million to -$40.66 million.
  • Net operating cash flow has increased to -$51.87 million or 47.94% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of 11.35%.

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