Novavax (NVAX) Marked As A Dead Cat Bounce Stock
Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer.
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 Novavax as such a stock due to the following factors:
- NVAX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $49.2 million.
- NVAX has traded 284,446 shares today.
- NVAX is up 3.3% today.
- NVAX was down 5% yesterday.
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More details on NVAX:
Novavax, Inc., a clinical-stage vaccine company, focuses on discovering, developing, and commercializing recombinant nanoparticle vaccines and adjuvants. The company produces its vaccines using its proprietary recombinant nanoparticle vaccine technology. Currently there are 5 analysts that rate Novavax a buy, no analysts rate it a sell, and none rate it a hold.
The average volume for Novavax has been 5.4 million shares per day over the past 30 days. Novavax has a market cap of $2.2 billion and is part of the health care sector and drugs industry. The stock has a beta of 1.12 and a short float of 17.8% with 4.91 days to cover. Shares are up 34.6% year-to-date as of the close of trading on Wednesday.
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Analysis:
rates Novavax 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, disappointing return on equity and weak operating cash flow.
Highlights from the ratings report include:
- NOVAVAX 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 two years. We anticipate that this should continue in the coming year. During the past fiscal year, NOVAVAX INC reported poor results of -$0.36 versus -$0.31 in the prior year. For the next year, the market is expecting a contraction of 19.4% in earnings (-$0.43 versus -$0.36).
- 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 124.5% when compared to the same quarter one year ago, falling from -$14.05 million to -$31.55 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, NOVAVAX INC's return on equity significantly trails that of both the industry average and the S&P 500.
- Net operating cash flow has significantly decreased to -$19.77 million or 61.20% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- The gross profit margin for NOVAVAX INC is currently very high, coming in at 79.06%. Regardless of NVAX's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, NVAX's net profit margin of -469.15% significantly underperformed when compared to the industry average.
- You can view the full Novavax Ratings Report.
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