Trade-Ideas LLC identified

Aegerion Pharmaceuticals

(

AEGR

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

  • AEGR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $17.7 million.
  • AEGR has traded 80,123 shares today.
  • AEGR is down 5.2% today.
  • AEGR was up 7.5% yesterday.

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More details on AEGR:

Aegerion Pharmaceuticals, Inc., a biopharmaceutical company, develops and commercializes therapies for patients with debilitating rare diseases in the United States. Currently there are 2 analysts that rate Aegerion Pharmaceuticals a buy, no analysts rate it a sell, and 4 rate it a hold.

TheStreet Recommends

The average volume for Aegerion Pharmaceuticals has been 790,700 shares per day over the past 30 days. Aegerion has a market cap of $274.6 million and is part of the health care sector and drugs industry. The stock has a beta of 1.77 and a short float of 45.4% with 3.90 days to cover. Shares are down 51.3% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Aegerion Pharmaceuticals as a

sell

. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, disappointing return on equity, generally high debt management risk, 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 66.3% when compared to the same quarter one year ago, falling from -$5.87 million to -$9.77 million.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Biotechnology industry and the overall market, AEGERION PHARMACEUTICALS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Currently the debt-to-equity ratio of 1.75 is quite high overall and when compared to the industry average, suggesting that the current management of debt levels should be re-evaluated. Regardless of the company's weak debt-to-equity ratio, AEGR has managed to keep a strong quick ratio of 1.52, which demonstrates the ability to cover short-term cash needs.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 56.41%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 70.00% 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.
  • AEGERION PHARMACEUTICALS 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. 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, AEGERION PHARMACEUTICALS INC continued to lose money by earning -$1.36 versus -$2.20 in the prior year. For the next year, the market is expecting a contraction of 42.6% in earnings (-$1.94 versus -$1.36).

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