Trade-Ideas LLC identified

Ionis Pharmaceuticals

(

IONS

) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Ionis Pharmaceuticals as such a stock due to the following factors:

  • IONS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $88.6 million.
  • IONS has traded 6.7 million shares today.
  • IONS is up 3.2% today.
  • IONS was down 39.4% yesterday.

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More details on IONS:

Ionis Pharmaceuticals, Inc., a RNA-targeted drug discovery and development company, develops drugs for patients with severe and rare diseases in the United States. Currently there are 3 analysts that rate Ionis Pharmaceuticals a buy, 1 analyst rates it a sell, and 3 rate it a hold.

The average volume for Ionis Pharmaceuticals has been 1.7 million shares per day over the past 30 days. Ionis has a market cap of $4.3 billion and is part of the health care sector and drugs industry. The stock has a beta of 2.08 and a short float of 10.8% with 2.59 days to cover. Shares are down 65.5% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Ionis Pharmaceuticals as a

sell

. 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 high debt management risk.

Highlights from the ratings report include:

  • IONIS 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 two years. We anticipate that this should continue in the coming year. During the past fiscal year, IONIS PHARMACEUTICALS INC reported poor results of -$0.74 versus -$0.35 in the prior year. For the next year, the market is expecting a contraction of 90.5% in earnings (-$1.41 versus -$0.74).
  • 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 276.4% when compared to the same quarter one year ago, falling from -$16.72 million to -$62.92 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, IONIS 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 -$75.77 million or 76.92% 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 48.94%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 271.42% 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.

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