Perilous Reversal Watch: Ariad Pharmaceuticals (ARIA)
- ARIA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $95.8 million.
- ARIA has traded 7.5 million shares today.
- ARIA is down 3.1% today.
- ARIA was up 8.8% yesterday.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in ARIA with the Ticky from Trade-Ideas. See the FREE profile for ARIA NOW at Trade-Ideas More details on ARIA: ARIAD Pharmaceuticals, Inc., an oncology company, focuses on the discovery, development, and commercialization of medicines for cancer patients. Currently there are 4 analysts that rate Ariad Pharmaceuticals a buy, 2 analysts rate it a sell, and 8 rate it a hold. The average volume for Ariad Pharmaceuticals has been 27.3 million shares per day over the past 30 days. Ariad has a market cap of $1.6 billion and is part of the health care sector and drugs industry. The stock has a beta of 1.22 and a short float of 22.5% with 3.48 days to cover. Shares are up 22.7% 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 Ariad Pharmaceuticals as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, weak operating cash flow, generally disappointing historical performance in the stock itself 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 decreased by 22.7% when compared to the same quarter one year ago, dropping from -$60.45 million to -$74.16 million.
- Net operating cash flow has decreased to -$51.57 million or 25.49% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- Looking at the price performance of ARIA's shares over the past 12 months, there is not much good news to report: the stock is down 66.05%, and it has underformed the S&P 500 Index. In addition, the company's earnings per share are lower today than the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
- ARIAD PHARMACEUTICALS INC's earnings per share declined by 11.1% 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, ARIAD PHARMACEUTICALS INC reported poor results of -$1.49 versus -$1.34 in the prior year. This year, the market expects an improvement in earnings (-$1.12 versus -$1.49).
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Biotechnology industry and the overall market, ARIAD PHARMACEUTICALS INC's return on equity significantly trails that of both the industry average and the S&P 500.
- You can view the full Ariad 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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