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Trade-Ideas LLC identified
) as a "water-logged and getting wetter" (weak stocks crossing below support with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified ACADIA Pharmaceuticals as such a stock due to the following factors:
- ACAD has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $44.0 million.
- ACAD has traded 1.1 million shares today.
- ACAD traded in a range 200.2% of the normal price range with a price range of $2.74.
- ACAD traded below its daily resistance level (quality: 6 days, meaning that the stock is crossing a resistance level set by the last 6 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Water-Logged and Getting Wetter' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower.
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More details on ACAD:
ACADIA Pharmaceuticals Inc., a biopharmaceutical company, focuses on the development and commercialization of small molecule drugs that address unmet medical needs in neurological and related central nervous system disorders. Currently there are 6 analysts that rate ACADIA Pharmaceuticals a buy, no analysts rate it a sell, and 1 rates it a hold.
The average volume for ACADIA Pharmaceuticals has been 1.2 million shares per day over the past 30 days. ACADIA has a market cap of $3.3 billion and is part of the health care sector and drugs industry. The stock has a beta of 2.88 and a short float of 29.3% with 11.44 days to cover. Shares are up 32% year-to-date as of the close of trading on Friday.
rates ACADIA Pharmaceuticals 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:
- ACADIA 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. Earnings per share have declined over the last year. We anticipate that this should continue in the coming year. During the past fiscal year, ACADIA PHARMACEUTICALS INC reported poor results of -$0.44 versus -$0.37 in the prior year. For the next year, the market is expecting a contraction of 109.1% in earnings (-$0.92 versus -$0.44).
- 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 131.8% when compared to the same quarter one year ago, falling from -$10.70 million to -$24.79 million.
- The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Biotechnology industry and the overall market, ACADIA PHARMACEUTICALS 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 -$17.48 million or 84.52% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- ACAD, with its very weak revenue results, has greatly underperformed against the industry average of 40.9%. Since the same quarter one year prior, revenues plummeted by 94.2%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
- You can view the full ACADIA Pharmaceuticals Ratings Report.