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NEW YORK (TheStreet) -- PTC Therapeutics (PTCT) - Get 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:
"We rate PTC THERAPEUTICS INC (PTCT) a SELL. This is driven by some concerns, 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 feeble growth in its earnings per share, deteriorating net income and weak operating cash flow."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- PTC THERAPEUTICS 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. For the next year, the market is expecting a contraction of 113.1% in earnings (-$3.33 versus -$1.56).
- 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 517.6% when compared to the same quarter one year ago, falling from -$4.42 million to -$27.28 million.
- Net operating cash flow has significantly decreased to -$17.04 million or 229.07% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- PTCT, with its very weak revenue results, has greatly underperformed against the industry average of 40.9%. Since the same quarter one year prior, revenues plummeted by 89.6%. 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, PTC THERAPEUTICS 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: PTCT Ratings Report