Trade-Ideas LLC identified

Intercept Pharmaceuticals

(

ICPT

) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Intercept Pharmaceuticals as such a stock due to the following factors:

  • ICPT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $50.5 million.
  • ICPT traded 34,322 shares today in the pre-market hours as of 8:18 AM, representing 10.3% of its average daily volume.

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More details on ICPT:

Intercept Pharmaceuticals, Inc., a biopharmaceutical company, focuses on the development and commercialization of therapeutics to treat non-viral, progressive liver diseases. Currently there are 7 analysts that rate Intercept Pharmaceuticals a buy, 2 analysts rate it a sell, and 2 rate it a hold.

The average volume for Intercept Pharmaceuticals has been 570,400 shares per day over the past 30 days. Intercept has a market cap of $3.5 billion and is part of the health care sector and drugs industry. The stock has a beta of -2.45 and a short float of 35.5% with 10.18 days to cover. Shares are down 7.8% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Intercept Pharmaceuticals as a

sell

. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, weak operating cash flow, generally disappointing historical performance in the stock itself 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 221.6% when compared to the same quarter one year ago, falling from -$39.39 million to -$126.67 million.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Biotechnology industry and the overall market, INTERCEPT PHARMA 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 -$69.86 million or 136.05% 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 47.56%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 190.44% 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.
  • INTERCEPT PHARMA 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. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, INTERCEPT PHARMA INC continued to lose money by earning -$9.49 versus -$14.42 in the prior year. For the next year, the market is expecting a contraction of 79.7% in earnings (-$17.05 versus -$9.49).

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