Traders Alert – Sarepta Therapeutics Inc (NASDAQ:SRPT) Invacare Corporation (NYSE:IVC)
Trading the news is a technique to trade equities, currencies and other financial instruments on the financial markets. Trading news releases can be a noteworthy tool for financial shareholders. Economic news reports often drive strong short-term moves in the markets, which may create trading opportunities for traders. Declarations about corporate profits, a change in administration, rumors of a merger, are events that can cause a company’s share price to move wildly up or down. Interest rates, unemployment and export rates, or the central bank’s policy shifts, can cause a deep change of an exchange rate.
Shares of Sarepta Therapeutics Inc (NASDAQ:SRPT) declined -3.19% to $42.54 on Tuesday. The stock is currently floating in a range of $41.55 – 43.14. The stock is moving on high volume, traded at a volume of 7.90M shares, as compared to its average daily volume of 2.46M shares. Trading volume, or volume, is the number of shares or contracts that point towards the overall activity of a security or market for a given period. Trading volume is a key technical indicator an investor uses to identify momentum in a stock and confirm a trend or trend reversal. Volume gives an investor an idea of the price action of a security and whether he should buy or sell the security.
Trading volume can also signal when an investor should take profits and sell a security because of low activity. If there is no relationship between the trading volume and the price of a security, this signals weakness in the current trend and a possible reversal. The market capitalization for the company is reported at $2.37B.
Invacare Corporation (NYSE:IVC) inclined 2.50points or 19.76% at the market, soon after a leading manufacturer and distributor in its markets for medical equipment used in non-acute care settings has received notice from the United States Food and Drug Administration (FDA) that the company has successfully satisfied the Agency’s requirements under the consent decree to resume full operations at its Corporate and Taylor Street manufacturing facility in Elyria, Ohio. The company is now able to produce and sell all products made in the Taylor Street facility without the previous restrictions under the consent decree, which has been in effect since December 21, 2012.
The stock opened at $13.80. It reached an intraday trading high of $15.85 and now trading at $15.15. The total volume traded for the day is 1.88M, as compared to its average daily volume of 774,391.00 shares. The current EPS for the company has been recorded at $-1.58 and the beta value recorded by the company stands at 2.29 points.
In a letter dated July 24, 2017, FDA stated, “Invacare can design, manufacture, process, pack, repack, label, hold, distribute, import into or export from the United States of America, the subject devices at or from the Corporate or Taylor Street facilities.” The letter followed the completion of several procedural milestones, counting FDA’s recent on-site inspection of the facilities that started on May 30, 2017.
“Since I arrived at Invacare in 2015, we have created a culture of quality excellence,” said Matthew E. Monaghan, chairman, president and chief executive officer. “We made noteworthy investments in our quality system, in addition to manufacturing and design processes. We are happy to have FDA’s recognition of our progress, and we will continue to put quality at the core of everything we do. I want to thank our associates and acknowledge the leadership of John Watkins, senior vice president of quality assurance and regulatory affairs, for making quality our number one priority and getting us to this important milestone.”
The company is now able to sell its wheelchairs designed and manufactured at the Taylor Street facility without having to obtain the verification of medical necessity (VMN) documentation formerly required under the consent decree. To ensure the facilities are in continuous compliance with FDA regulations and the consent decree, the consent decree requires the company to undergo five years of audits by a third-party auditor selected by Invacare. The third-party auditor will inspect the Corporate and Taylor Street facilities every six months for the first year, and then once every 12 months for the four years thereafter. Other Invacare manufacturing facilities were unaffected by the consent decree and have remained fully operational.
Monaghan continued, “The consent decree was a precipitating event for Invacare, and it caused us to evaluate all areas of the business. We are emerging from this experience with a new, stronger foundation. While our transformation remains ongoing, we now have a leadership team with robust medical device and quality backgrounds; a clear transformation strategy that aligns the company toward its more clinically complex mix of products; a new commercial focus on our clinical competencies to better meet the needs of our complex rehab and post-acute customers; and an exciting new product portfolio. This new product portfolio includes the Invacare® TDX® SP2 power wheelchair with LiNX® technology, which recently received 510(k) clearance from FDA and will launch in the third quarter of 2017 from the Taylor Street facility. We are very proud to have reached this consent decree milestone with FDA, and we thank the many customers who have remained committed to us throughout this process. We look forward to expanding our rehab business over time and working together with our customers to make life’s experiences possible for the people who need our products.”
