Pre-Market Activity Shows Heavy Volume And Movement For Intercept Pharmaceuticals (ICPT) - TheStreet

Trade-Ideas LLC identified

Intercept Pharmaceuticals

(

ICPT

) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Intercept Pharmaceuticals as such a stock due to the following factors:

  • ICPT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $52.0 million.
  • ICPT traded 72,369 shares today in the pre-market hours as of 8:32 AM, representing 19.4% of its average daily volume.

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More details on ICPT:

Intercept Pharmaceuticals, Inc., a development stage biopharmaceutical company, focuses on the discovery, development, and commercialization of novel therapeutics to treat chronic liver and intestinal diseases utilizing its proprietary bile acid chemistry. Currently there are 5 analysts that rate Intercept Pharmaceuticals a buy, 1 analyst rates it a sell, and 2 rate it a hold.

The average volume for Intercept Pharmaceuticals has been 373,900 shares per day over the past 30 days. Intercept has a market cap of $4.1 billion and is part of the health care sector and drugs industry. The stock has a beta of -4.44 and a short float of 20.1% with 6.87 days to cover. Shares are up 7.7% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Intercept Pharmaceuticals 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, 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 243.1% when compared to the same quarter one year ago, falling from $33.47 million to -$47.89 million.
  • Net operating cash flow has significantly decreased to -$34.00 million or 75.17% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • The share price of INTERCEPT PHARMA INC has not done very well: it is down 22.97% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. 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.
  • INTERCEPT PHARMA 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 two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, INTERCEPT PHARMA INC reported poor results of -$14.42 versus -$3.70 in the prior year. This year, the market expects an improvement in earnings (-$10.45 versus -$14.42).
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Biotechnology industry and the overall market, INTERCEPT PHARMA INC's return on equity significantly trails that of both the industry average and the S&P 500.

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