Today's Dead Cat Bounce Stock: Sarepta Therapeutics (SRPT)
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 Sarepta Therapeutics as such a stock due to the following factors:
- SRPT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $64.6 million.
- SRPT has traded 346,809 shares today.
- SRPT is up 3.1% today.
- SRPT was down 5.5% yesterday.
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More details on SRPT:
Sarepta Therapeutics, Inc., a biopharmaceutical company, focuses on the discovery and development of RNA-based therapeutics for the treatment of rare, infectious, and other diseases. Currently there are 4 analysts that rate Sarepta Therapeutics a buy, 4 analysts rate it a sell, and 5 rate it a hold.
The average volume for Sarepta Therapeutics has been 7.5 million shares per day over the past 30 days. Sarepta has a market cap of $1.0 billion and is part of the health care sector and drugs industry. The stock has a beta of 1.43 and a short float of 48.2% with 6.96 days to cover. Shares are down 44.6% year-to-date as of the close of trading on Monday.
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Analysis:
rates Sarepta Therapeutics as a
. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, weak operating cash flow, generally disappointing historical performance in the stock itself and poor profit margins.
Highlights from the ratings report include:
- The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- Net operating cash flow has decreased to -$60.69 million or 40.00% 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 SAREPTA THERAPEUTICS INC is currently extremely low, coming in at 0.00%. SRPT has continued with the weak profit margin when compared to the same quarter of last year.
- SRPT's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 29.07%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
- SAREPTA THERAPEUTICS INC has improved earnings per share by 12.1% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, SAREPTA THERAPEUTICS INC reported poor results of -$5.19 versus -$3.39 in the prior year. This year, the market expects an improvement in earnings (-$4.27 versus -$5.19).
- You can view the full Sarepta Therapeutics Ratings Report.
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