NEW YORK (TheStreet) -- Chimerix (CMRX) - Get Report stock is up by 4.43% to $8.72 in pre-market trading on Thursday, after Point72 Asset Management disclosed a 5.3% stake in the bio-pharmaceutical company.
Based in New York City, Point72, previously known as SAC Capital Advisers, was founded by famous hedge fund manager Steven Cohen. The company disclosed a 5.3% stake in Chimerix on Wednesday, the Wall Street Journal reports.
Chimerix stock dropped more than 80% on Monday after a Phase 3 trial of an antiviral used to prevent infections in blood and marrow transplants was unsuccessful. The company was also downgraded at JPMorgan after the results were released.
Chimerix plans to continue tests of the antiviral drug for viruses such as smallpox.
"With a strong cash position, an experienced leadership team, and brincidofovir patent exclusivity through 2034, we continue to believe there is a viable path forward for the development of brincidofovir," Chimerix CEO Michelle Berrey said in a statement on Monday.
Separately, recently, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author. TheStreet Ratings has this to say about the recommendation:
We rate CHIMERIX INC as a Sell with a ratings score of D. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. 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, weak operating cash flow and generally disappointing historical performance in the stock itself.
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- CHIMERIX INC's earnings per share declined by 48.9% in the most recent quarter compared to 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, CHIMERIX INC reported poor results of -$1.77 versus -$1.45 in the prior year. For the next year, the market is expecting a contraction of 46.3% in earnings (-$2.59 versus -$1.77).
- 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 91.4% when compared to the same quarter one year ago, falling from -$16.95 million to -$32.45 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, CHIMERIX 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 -$24.93 million or 117.74% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 82.92%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 48.93% compared to the year-earlier 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.
- You can view the full analysis from the report here: CMRX