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Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet, Inc., or any of its contributors.  TheStreet Ratings quantitative algorithm evaluates over 4,300 stocks on a daily basis by 32 different data factors and assigns a unique buy, sell, or hold recommendation on each stock.  Click here to learn more.

NEW YORK (TheStreet) -- Macrogenics (MGNX) - Get MacroGenics, Inc. Report has been downgraded by TheStreet Ratings from Hold to Sell with a ratings score of D+.  TheStreet Ratings Team has this to say about their recommendation:

TheStreet Ratings team rates MACROGENICS INC as a Sell with a ratings score of D+. TheStreet Ratings Team has this to say about their recommendation:

"We rate MACROGENICS INC (MGNX) a SELL. This is driven by multiple 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 deteriorating net income and feeble growth in its earnings per share."

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Highlights from the analysis by TheStreet Ratings Team goes as follows:

  • 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 493.4% when compared to the same quarter one year ago, falling from -$3.21 million to -$19.02 million.
  • MACROGENICS 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. The company has reported a trend of declining earnings per share over the past year. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, MACROGENICS INC swung to a loss, reporting -$1.38 versus $0.14 in the prior year. This year, the market expects an improvement in earnings (-$1.38 versus -$1.38).
  • In its most recent trading session, MGNX has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Regardless of the rise in share value over the previous year, we feel that the risks involved in investing in this stock do not compensate for any future upside potential.
  • MGNX, with its very weak revenue results, has greatly underperformed against the industry average of 36.0%. Since the same quarter one year prior, revenues plummeted by 63.3%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • Compared to other companies in the Biotechnology industry and the overall market, MACROGENICS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • You can view the full analysis from the report here: MGNX Ratings Report