Immunogen (IMGN) Is Today's 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 Immunogen as such a stock due to the following factors:
- IMGN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $13.7 million.
- IMGN has traded 70,645 shares today.
- IMGN is up 3.3% today.
- IMGN was down 6.3% yesterday.
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More details on IMGN:
ImmunoGen, Inc., a biotechnology company, develops targeted anticancer therapeutics. The company develops its products using its antibody-drug conjugates technology. It offers Kadcyla, an antibody-drug conjugate for the treatment of HER2-positive metastatic breast cancer. Currently there are 4 analysts that rate Immunogen a buy, 1 analyst rates it a sell, and 4 rate it a hold.
The average volume for Immunogen has been 1.3 million shares per day over the past 30 days. Immunogen has a market cap of $1.1 billion and is part of the health care sector and drugs industry. The stock has a beta of 1.50 and a short float of 20.4% with 9.26 days to cover. Shares are up 91.8% year-to-date as of the close of trading on Monday.
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Analysis:
rates Immunogen as a
. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, disappointing return on equity 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 51.4% when compared to the same quarter one year ago, falling from -$22.28 million to -$33.74 million.
- 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. Compared to other companies in the Biotechnology industry and the overall market, IMMUNOGEN INC's return on equity significantly trails that of both the industry average and the S&P 500.
- IMMUNOGEN INC's earnings per share declined by 50.0% 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, IMMUNOGEN INC continued to lose money by earning -$0.70 versus -$0.84 in the prior year. For the next year, the market is expecting a contraction of 104.3% in earnings (-$1.43 versus -$0.70).
- Compared to its closing price of one year ago, IMGN's share price has jumped by 26.58%, exceeding the performance of the broader market during that same time frame. Regarding the future course of this stock, we feel that the risks involved in investing in IMGN do not compensate for any future upside potential, despite the fact that it has seen nice gains over the past 12 months.
- Despite its growing revenue, the company underperformed as compared with the industry average of 13.4%. Since the same quarter one year prior, revenues rose by 12.5%. 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.
- You can view the full Immunogen Ratings Report.
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