Intercept Pharmaceuticals (ICPT) In A Perilous Reversal
Trade-Ideas LLC identified
(
) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Intercept Pharmaceuticals as such a stock due to the following factors:
- ICPT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $170.9 million.
- ICPT has traded 87,741 shares today.
- ICPT is down 4.8% today.
- ICPT was up 7.1% yesterday.
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More details on ICPT:
Intercept Pharmaceuticals, Inc., a development stage biopharmaceutical company, focuses on the discovery, development, and commercialization of novel therapeutics to treat chronic liver and intestinal diseases utilizing its proprietary bile acid chemistry. Currently there are 5 analysts that rate Intercept Pharmaceuticals a buy, 2 analysts rate it a sell, and 2 rate it a hold.
The average volume for Intercept Pharmaceuticals has been 449,900 shares per day over the past 30 days. Intercept has a market cap of $4.7 billion and is part of the health care sector and drugs industry. The stock has a beta of -4.15 and a short float of 19.9% with 2.83 days to cover. Shares are up 32% year-to-date as of the close of trading on Tuesday.
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Analysis:
rates Intercept Pharmaceuticals as a
. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income 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 42.0% when compared to the same quarter one year ago, falling from -$35.84 million to -$50.90 million.
- INTERCEPT PHARMA INC's earnings per share declined by 24.3% 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, INTERCEPT PHARMA INC reported poor results of -$14.42 versus -$3.70 in the prior year. This year, the market expects an improvement in earnings (-$9.87 versus -$14.42).
- 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, INTERCEPT PHARMA INC's return on equity significantly trails that of both the industry average and the S&P 500.
- Along with the stagnant revenue growth, the company underperformed against the industry average of 13.4%. Since the same quarter one year prior, revenues have remained constant. Even though the company's revenue remained stagnant, the earnings per share decreased.
- Looking at where the stock is today compared to one year ago, we find that it is higher, and it has outperformed the rise in the S&P 500 over the same period, despite the company's weak earnings results. Turning our attention to the future direction of the stock, we do not believe this stock offers ample reward opportunity to compensate for the risks, despite the fact that it rose over the past year.
- You can view the full Intercept Pharmaceuticals Ratings Report.
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