Trade-Ideas: Alnylam Pharmaceuticals (ALNY) 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 Alnylam Pharmaceuticals as such a stock due to the following factors:
- ALNY has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $101.0 million.
- ALNY has traded 79,469 shares today.
- ALNY is up 3% today.
- ALNY was down 5.1% yesterday.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in ALNY with the Ticky from Trade-Ideas. See the FREE profile for ALNY NOW at Trade-Ideas
More details on ALNY:
Alnylam Pharmaceuticals, Inc., a biopharmaceutical company, discovers, develops, and commercializes novel therapeutics based on RNA interference. Currently there are 7 analysts that rate Alnylam Pharmaceuticals a buy, no analysts rate it a sell, and 2 rate it a hold.
The average volume for Alnylam Pharmaceuticals has been 984,600 shares per day over the past 30 days. Alnylam has a market cap of $8.8 billion and is part of the health care sector and drugs industry. The stock has a beta of 2.11 and a short float of 6.5% with 3.44 days to cover. Shares are up 2% year-to-date as of the close of trading on Thursday.
EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.
Analysis:
rates Alnylam Pharmaceuticals as a
. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, weak operating cash flow 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 74.6% when compared to the same quarter one year ago, falling from -$43.99 million to -$76.79 million.
- Net operating cash flow has decreased to -$54.37 million or 33.55% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
- ALNYLAM PHARMACEUTICALS 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. 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, ALNYLAM PHARMACEUTICALS INC reported poor results of -$5.14 versus -$1.43 in the prior year. This year, the market expects an improvement in earnings (-$3.32 versus -$5.14).
- 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, ALNYLAM PHARMACEUTICALS INC's return on equity significantly trails that of both the industry average and the S&P 500.
- The revenue fell significantly faster than the industry average of 13.4%. Since the same quarter one year prior, revenues fell by 42.4%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- You can view the full Alnylam Pharmaceuticals Ratings Report.
EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.