Perilous Reversal Watch: Regeneron Pharmaceuticals (REGN)
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 Regeneron Pharmaceuticals (REGN) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Regeneron Pharmaceuticals as such a stock due to the following factors:
- REGN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $262.3 million.
- REGN has traded 53,980 shares today.
- REGN is down 3.1% today.
- REGN was up 11.8% yesterday.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in REGN with the Ticky from Trade-Ideas. See the FREE profile for REGN NOW at Trade-IdeasMore details on REGN: Regeneron Pharmaceuticals, Inc., a biopharmaceutical company, discovers, invents, develops, manufactures, and commercializes medicines for the treatment of serious medical conditions in the United States and internationally. REGN has a PE ratio of 38.4. Currently there are 10 analysts that rate Regeneron Pharmaceuticals a buy, no analysts rate it a sell, and 4 rate it a hold.The average volume for Regeneron Pharmaceuticals has been 742,200 shares per day over the past 30 days. Regeneron has a market cap of $26.7 billion and is part of the health care sector and drugs industry. The stock has a beta of 0.78 and a short float of 6% with 4.24 days to cover. Shares are down 2.4% 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 Regeneron Pharmaceuticals as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and notable return on equity. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income and feeble growth in the company's earnings per share.Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 10.6%. Since the same quarter one year prior, revenues rose by 39.6%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
- REGN's debt-to-equity ratio is very low at 0.29 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 5.35, which clearly demonstrates the ability to cover short-term cash needs.
- Compared to its closing price of one year ago, REGN's share price has jumped by 45.92%, exceeding the performance of the broader market during that same time frame. Setting our sights on the months ahead, however, we feel that the stock's sharp appreciation over the last year has driven it to a price level which is now relatively expensive compared to the rest of its industry. The implication is that its reduced upside potential is not good enough to warrant further investment at this time.
- REGENERON PHARMACEUTICALS's earnings per share declined by 27.3% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, REGENERON PHARMACEUTICALS turned its bottom line around by earning $6.61 versus -$2.44 in the prior year. For the next year, the market is expecting a contraction of 42.4% in earnings ($3.81 versus $6.61).
- 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 Biotechnology industry. The net income has significantly decreased by 26.2% when compared to the same quarter one year ago, falling from $191.47 million to $141.31 million.
- You can view the full Regeneron 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