Trade-Ideas LLC identified
) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Ophthotech as such a stock due to the following factors:
- OPHT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $25.0 million.
- OPHT has traded 120,639 shares today.
- OPHT is up 3.1% today.
- OPHT was down 6.1% yesterday.
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More details on OPHT:
Ophthotech Corporation, a biopharmaceutical company, develops novel therapeutics to treat diseases of the back of the eye. Currently there are 7 analysts that rate Ophthotech a buy, no analysts rate it a sell, and 1 rates it a hold.
The average volume for Ophthotech has been 647,700 shares per day over the past 30 days. Ophthotech has a market cap of $1.5 billion and is part of the health care sector and drugs industry. Shares are down 47.8% year-to-date as of the close of trading on Wednesday.
rates Ophthotech as a
. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in 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 underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Biotechnology industry average. The net income has decreased by 12.6% when compared to the same quarter one year ago, dropping from -$31.65 million to -$35.65 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, OPHTHOTECH CORP'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 -$39.04 million or 462.55% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- Reflecting the weaknesses we have cited, including the decline in the company's earnings per share, OPHT has underperformed the S&P 500 Index, declining 11.09% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
- OPHTHOTECH CORP's earnings per share declined by 8.5% in the most recent quarter compared to 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, OPHTHOTECH CORP continued to lose money by earning -$3.05 versus -$3.52 in the prior year. For the next year, the market is expecting a contraction of 82.3% in earnings (-$5.56 versus -$3.05).
- You can view the full Ophthotech Ratings Report.