Trade-Ideas LLC identified Nektar Therapeutics ( NKTR) as a strong 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 $13.9 million.
  • NKTR has traded 70,854 shares today.
  • NKTR is trading at 2.70 times the normal volume for the stock at this time of day.
  • NKTR is trading at a new high 3.00% 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 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 911,700 shares per day over the past 30 days. Nektar has a market cap of $2.0 billion and is part of the health care sector and drugs industry. The stock has a beta of 1.24 and a short float of 16.9% with 12.43 days to cover. Shares are down 9.3% year-to-date as of the close of trading on Wednesday.

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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, deteriorating net income and weak operating cash flow.

Highlights from the ratings report include:
  • NEKTAR THERAPEUTICS has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from 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 65.6% in earnings (-$1.01 versus -$0.61).
  • 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 Pharmaceuticals industry. The net income has significantly decreased by 157.7% when compared to the same quarter one year ago, falling from $33.82 million to -$19.50 million.
  • Net operating cash flow has significantly decreased to -$23.65 million or 137.35% 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 revenue fell significantly faster than the industry average of 8.4%. Since the same quarter one year prior, revenues fell by 45.9%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • Compared to its closing price of one year ago, NKTR's share price has jumped by 28.98%, exceeding the performance of the broader market during that same time frame. Despite the fact that the stock's value has already enjoyed nice gains in the past year, we feel that the risks surrounding an investment in this stock outweigh any potential future returns.

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