Incyte (INCY) Showing Signs Of A Dead Cat Bounce Today

Trade-Ideas LLC identified Incyte (INCY) as a "dead cat bounce" (down big yesterday but up big today) candidate
By TheStreet Wire ,

Trade-Ideas LLC identified

Incyte

(

INCY

) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Incyte as such a stock due to the following factors:

  • INCY has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $251.9 million.
  • INCY has traded 77,334 shares today.
  • INCY is up 5.2% today.
  • INCY was down 14.2% yesterday.

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More details on INCY:

Incyte Corporation, a biopharmaceutical company, focuses on the discovery, development, and commercialization of proprietary therapeutics primarily for oncology. Currently there are 11 analysts that rate Incyte a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Incyte has been 1.9 million shares per day over the past 30 days. Incyte has a market cap of $21.8 billion and is part of the health care sector and drugs industry. The stock has a beta of -0.07 and a short float of 2.8% with 1.61 days to cover. Shares are up 59.7% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Incyte as a

sell

. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, generally high debt management risk 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 166.8% when compared to the same quarter one year ago, falling from $59.29 million to -$39.58 million.
  • The debt-to-equity ratio is very high at 7.03 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company.
  • INCYTE CORP 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. 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, INCYTE CORP continued to lose money by earning -$0.32 versus -$0.54 in the prior year. For the next year, the market is expecting a contraction of 34.4% in earnings (-$0.43 versus -$0.32).
  • INCY, with its decline in revenue, underperformed when compared the industry average of 11.3%. Since the same quarter one year prior, revenues slightly dropped by 5.3%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • Compared to other companies in the Biotechnology industry and the overall market, INCYTE CORP's return on equity significantly trails that of both the industry average and the S&P 500.

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