Trade-Ideas: AVANIR Pharmaceuticals (AVNR) Is Today's "Perilous Reversal" Stock
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.Trade-Ideas LLC identified AVANIR Pharmaceuticals (AVNR) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified AVANIR Pharmaceuticals as such a stock due to the following factors:
- AVNR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $26.2 million.
- AVNR has traded 5.7 million shares today.
- AVNR is down 4.1% today.
- AVNR was up 7.4% yesterday.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in AVNR with the Ticky from Trade-Ideas. See the FREE profile for AVNR NOW at Trade-IdeasMore details on AVNR: Avanir Pharmaceuticals, Inc., together with its subsidiaries, engages in acquiring, developing, and commercializing novel therapeutic products for the treatment of central nervous system disorders primarily in the United States. Currently there are 6 analysts that rate AVANIR Pharmaceuticals a buy, no analysts rate it a sell, and 1 rates it a hold.The average volume for AVANIR Pharmaceuticals has been 2.7 million shares per day over the past 30 days. AVANIR has a market cap of $725.9 million and is part of the health care sector and drugs industry. The stock has a beta of 0.84 and a short float of 18.4% with 2.92 days to cover. Shares are up 90.7% year to date as of the close of trading on Friday.STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.TheStreetRatings.com Analysis:TheStreet Quant Ratings rates AVANIR Pharmaceuticals as a sell. The area that we feel has been the company's primary weakness has been its generally higher debt management risk.Highlights from the ratings report include:
- Even though the current debt-to-equity ratio is 1.31, it is still below the industry average, suggesting that this level of debt is acceptable within the Pharmaceuticals industry. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 2.51 is very high and demonstrates very strong liquidity.
- 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.
- The gross profit margin for AVANIR PHARMACEUTICALS INC is currently very high, coming in at 95.61%. Regardless of AVNR's high profit margin, it has managed to decrease from the same period last year.
- AVANIR PHARMACEUTICALS INC has improved earnings per share by 27.3% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. We feel that this trend should continue. This trend suggests that the performance of the business is improving. During the past fiscal year, AVANIR PHARMACEUTICALS INC continued to lose money by earning -$0.45 versus -$0.50 in the prior year. This year, the market expects an improvement in earnings (-$0.36 versus -$0.45).
- The net income increased by 24.0% when compared to the same quarter one year prior, going from -$15.03 million to -$11.42 million.
- You can view the full AVANIR Pharmaceuticals Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV