Bluebird Bio (BLUE) Marked As A Dead Cat Bounce Stock
Trade-Ideas LLC identified
(
) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified bluebird bio as such a stock due to the following factors:
- BLUE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $143.6 million.
- BLUE has traded 84,614 shares today.
- BLUE is up 3.4% today.
- BLUE was down 22% yesterday.
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More details on BLUE:
bluebird bio, Inc., a clinical-stage biotechnology company, focuses on developing transformative gene therapies for severe genetic and rare diseases. Currently there are 12 analysts that rate bluebird bio a buy, no analysts rate it a sell, and none rate it a hold.
The average volume for bluebird bio has been 1.2 million shares per day over the past 30 days. Bluebird bio has a market cap of $3.4 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 14.6% with 1.71 days to cover. Shares are down 1.7% year-to-date as of the close of trading on Wednesday.
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Analysis:
rates bluebird bio as a
. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income and weak operating cash flow.
Highlights from the ratings report include:
- BLUEBIRD BIO INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. Earnings per share have declined over the last year. We anticipate that this should continue in the coming year. During the past fiscal year, BLUEBIRD BIO INC reported poor results of -$1.78 versus -$0.80 in the prior year. For the next year, the market is expecting a contraction of 138.8% in earnings (-$4.25 versus -$1.78).
- 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 3294.2% when compared to the same quarter one year ago, falling from -$1.53 million to -$51.80 million.
- Net operating cash flow has declined marginally to -$12.12 million or 7.01% when compared to the same quarter last year. Despite a decrease in cash flow of 7.01%, BLUEBIRD BIO INC is still significantly exceeding the industry average of -79.03%.
- The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Biotechnology industry and the overall market, BLUEBIRD BIO INC's return on equity significantly trails that of both the industry average and the S&P 500.
- BLUE, with its decline in revenue, underperformed when compared the industry average of 5.2%. Since the same quarter one year prior, revenues fell by 22.0%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- You can view the full bluebird bio Ratings Report.
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