Spark Therapeutics (ONCE) Highlighted As Today's Perilous Reversal Stock
Trade-Ideas LLC identified
(
) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Spark Therapeutics as such a stock due to the following factors:
- ONCE has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $31.3 million.
- ONCE has traded 405,976 shares today.
- ONCE is down 3% today.
- ONCE was up 7% yesterday.
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More details on ONCE:
Spark Therapeutics, Inc. focuses on the development of gene therapy products for patients suffering from debilitating genetic diseases. ONCE has a PE ratio of 6. Currently there are 3 analysts that rate Spark Therapeutics a buy, 1 analyst rates it a sell, and 1 rates it a hold.
The average volume for Spark Therapeutics has been 340,000 shares per day over the past 30 days. Spark has a market cap of $1.4 billion and is part of the health care sector and drugs industry. The stock has a beta of -6.53 and a short float of 19.4% with 4.39 days to cover. Shares are up 20.1% year-to-date as of the close of trading on Monday.
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Analysis:
rates Spark Therapeutics as a
. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income and generally disappointing historical performance in the stock itself.
Highlights from the ratings report include:
- SPARK 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. Earnings per share have declined over the last year. We anticipate that this should continue in the coming year. During the past fiscal year, SPARK THERAPEUTICS INC reported poor results of -$1.96 versus -$0.38 in the prior year. For the next year, the market is expecting a contraction of 104.1% in earnings (-$4.00 versus -$1.96).
- 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 162.8% when compared to the same quarter one year ago, falling from -$9.73 million to -$25.58 million.
- Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 27.60%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 131.70% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
- The revenue fell significantly faster than the industry average of 17.9%. Since the same quarter one year prior, revenues fell by 43.3%. 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, SPARK THERAPEUTICS INC's return on equity significantly trails that of both the industry average and the S&P 500.
- You can view the full Spark Therapeutics Ratings Report.
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