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

  • PRTA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $25.1 million.
  • PRTA has traded 75,576 shares today.
  • PRTA is trading at 2.06 times the normal volume for the stock at this time of day.
  • PRTA is trading at a new high 3.33% 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 PRTA:

Prothena Corporation plc, a late-stage clinical biotechnology company, focuses on the discovery, development, and commercialization of novel protein immunotherapies for the treatment of diseases that involve protein misfolding or cell adhesion in Ireland. Currently there are 6 analysts that rate Prothena a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Prothena has been 476,900 shares per day over the past 30 days. Prothena has a market cap of $1.5 billion and is part of the health care sector and drugs industry. The stock has a beta of 2.59 and a short float of 21.9% with 8.96 days to cover. Shares are down 33% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Prothena as a sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:
  • PROTHENA CORP PLC's earnings per share declined by 47.3% in the most recent quarter compared to the same quarter a year ago. Earnings per share have declined over the last two years. We anticipate that this should continue in the coming year. During the past fiscal year, PROTHENA CORP PLC reported poor results of -$2.63 versus -$0.12 in the prior year. For the next year, the market is expecting a contraction of 45.4% in earnings (-$3.83 versus -$2.63).
  • 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 81.0% when compared to the same quarter one year ago, falling from -$15.20 million to -$27.52 million.
  • Current return on equity is lower than its ROE from the same quarter one year prior. This is a clear sign of weakness within the company. Compared to other companies in the Biotechnology industry and the overall market, PROTHENA CORP PLC'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 -$25.15 million or 70.87% 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 share price of PROTHENA CORP PLC has not done very well: it is down 18.28% 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.

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