Acorda Therapeutics (ACOR) Is Today's Dead Cat Bounce Stock
Trade-Ideas LLC identified Acorda Therapeutics ( ACOR) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Acorda Therapeutics as such a stock due to the following factors:
- ACOR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $12.9 million.
- ACOR has traded 417,912 shares today.
- ACOR is up 3% today.
- ACOR was down 5.4% yesterday.
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More details on ACOR: Acorda Therapeutics, Inc., a biopharmaceutical company, identifies, develops, and commercializes novel therapies for neurological disorders in the United States. ACOR has a PE ratio of 116. Currently there are 3 analysts that rate Acorda Therapeutics a buy, no analysts rate it a sell, and 3 rate it a hold. The average volume for Acorda Therapeutics has been 844,800 shares per day over the past 30 days. Acorda has a market cap of $1.3 billion and is part of the health care sector and drugs industry. The stock has a beta of 1.13 and a short float of 17.9% with 11.57 days to cover. Shares are down 36.1% year-to-date as of the close of trading on Thursday.
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Analysis:
rates Acorda Therapeutics as a
. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures and reasonable valuation levels. However, as a counter to these strengths, we also find weaknesses including disappointing return on equity and a generally disappointing performance in the stock itself. Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 5.7%. Since the same quarter one year prior, revenues rose by 16.1%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- The current debt-to-equity ratio, 0.43, is low and is below the industry average, implying that there has been successful management of debt levels. Along with this, the company maintains a quick ratio of 4.50, which clearly demonstrates the ability to cover short-term cash needs.
- ACORDA THERAPEUTICS INC reported significant earnings per share improvement 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, ACORDA THERAPEUTICS INC reported lower earnings of $0.25 versus $0.42 in the prior year. This year, the market expects an improvement in earnings ($0.71 versus $0.25).
- ACOR has underperformed the S&P 500 Index, declining 11.93% from its price level of one year ago. Turning toward the future, the fact that the stock has come down in price over the past year should not necessarily be interpreted as a negative; it could be one of the factors that may help make the stock attractive down the road. Right now, however, we believe that it is too soon to buy.
- 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. In comparison to the other companies in the Biotechnology industry and the overall market, ACORDA THERAPEUTICS INC's return on equity is significantly below that of the industry average and is below that of the S&P 500.
- You can view the full Acorda Therapeutics Ratings Report.
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