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Trade-Ideas LLC identified

Macrogenics

(

MGNX

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

  • MGNX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $14.3 million.
  • MGNX has traded 82,527 shares today.
  • MGNX is down 3.1% today.
  • MGNX was up 12.6% yesterday.

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More details on MGNX:

MacroGenics, Inc., a clinical-stage biopharmaceutical company, focuses on discovering and developing monoclonal antibody-based therapeutics for the treatment of cancer, as well as autoimmune disorders and infectious diseases. Currently there are 5 analysts that rate Macrogenics a buy, no analysts rate it a sell, and none rate it a hold.

TheStreet Recommends

The average volume for Macrogenics has been 343,400 shares per day over the past 30 days. Macrogenics has a market cap of $889.4 million and is part of the health care sector and drugs industry. Shares are down 16.5% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Macrogenics as a

sell

. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, weak operating cash flow 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 74.4% when compared to the same quarter one year ago, falling from -$12.26 million to -$21.38 million.
  • Net operating cash flow has significantly decreased to -$25.47 million or 513.61% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • 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 (-$0.32 versus -$1.38).
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. 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.
  • The revenue fell significantly faster than the industry average of 8.3%. Since the same quarter one year prior, revenues fell by 27.1%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.

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