Alnylam Pharmaceuticals (ALNY) Highlighted As 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 Alnylam Pharmaceuticals (ALNY) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Alnylam Pharmaceuticals as such a stock due to the following factors:
- ALNY has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $77.5 million.
- ALNY has traded 187,483 shares today.
- ALNY is down 3.5% today.
- ALNY was up 40.9% yesterday.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in ALNY with the Ticky from Trade-Ideas. See the FREE profile for ALNY NOW at Trade-IdeasMore details on ALNY: Alnylam Pharmaceuticals, Inc., a biopharmaceutical company, engages in discovering, developing, and commercializing novel therapeutics based on RNA interference (RNAi). Currently there are 5 analysts that rate Alnylam Pharmaceuticals a buy, no analysts rate it a sell, and 1 rates it a hold.The average volume for Alnylam Pharmaceuticals has been 662,500 shares per day over the past 30 days. Alnylam has a market cap of $4.2 billion and is part of the health care sector and drugs industry. The stock has a beta of 2.54 and a short float of 6.9% with 4.29 days to cover. Shares are up 45.1% year-to-date as of the close of trading on Monday.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 Alnylam Pharmaceuticals as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow and feeble growth in its earnings per share.Highlights from the ratings report include:
- 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 52.2% when compared to the same quarter one year ago, falling from -$19.50 million to -$29.69 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, ALNYLAM PHARMACEUTICALS INC'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 -$21.72 million or 516.63% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- ALNYLAM PHARMACEUTICALS INC's earnings per share declined by 26.3% in the most recent quarter compared to the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, ALNYLAM PHARMACEUTICALS INC reported poor results of -$2.08 versus -$1.35 in the prior year. This year, the market expects an improvement in earnings (-$1.39 versus -$2.08).
- The revenue fell significantly faster than the industry average of 10.6%. Since the same quarter one year prior, revenues fell by 46.4%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
- You can view the full Alnylam 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.
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