Trade-Ideas LLC identified

Intrexon

(

XON

) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Intrexon as such a stock due to the following factors:

  • XON has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $53.5 million.
  • XON has traded 52,555 shares today.
  • XON is down 4% today.
  • XON was up 6.8% yesterday.

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More details on XON:

Intrexon Corporation operates in the synthetic biology field in the United States. The company, through a suite of proprietary and complementary technologies, designs, builds, and regulates gene programs, which are DNA sequences that consist of key genetic components. Currently there are 4 analysts that rate Intrexon a buy, no analysts rate it a sell, and 3 rate it a hold.

The average volume for Intrexon has been 2.2 million shares per day over the past 30 days. Intrexon has a market cap of $2.8 billion and is part of the health care sector and drugs industry. Shares are down 15.6% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Intrexon as a

sell

. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, disappointing return on equity, 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 337.8% when compared to the same quarter one year ago, falling from $27.10 million to -$64.43 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, INTREXON CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 49.40%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 320.00% 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.
  • INTREXON CORP 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, INTREXON CORP continued to lose money by earning -$0.74 versus -$0.84 in the prior year. For the next year, the market is expecting a contraction of 66.9% in earnings (-$1.24 versus -$0.74).
  • The gross profit margin for INTREXON CORP is currently very high, coming in at 77.93%. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -148.32% is in-line with the industry average.

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