Trade-Ideas LLC identified

Supernus Pharmaceuticals

(

SUPN

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

  • SUPN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $15.3 million.
  • SUPN has traded 114,349 shares today.
  • SUPN is up 3.1% today.
  • SUPN was down 7.2% yesterday.

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More details on SUPN:

Supernus Pharmaceuticals, Inc., a specialty pharmaceutical company, focuses on the development and commercialization of products for the treatment of central nervous system diseases in the United States. SUPN has a PE ratio of 52. Currently there are 6 analysts that rate Supernus Pharmaceuticals a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Supernus Pharmaceuticals has been 839,000 shares per day over the past 30 days. Supernus has a market cap of $860.6 million and is part of the health care sector and drugs industry. The stock has a beta of 0.88 and a short float of 14.8% with 5.62 days to cover. Shares are up 96.6% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com

Analysis:

TheStreet Quant Ratings

rates Supernus Pharmaceuticals as a

hold

. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, expanding profit margins and solid stock price performance. However, as a counter to these strengths, we find that the growth in the company's net income has been quite unimpressive.

Highlights from the ratings report include:

  • SUPN's debt-to-equity ratio is very low at 0.07 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, SUPN has a quick ratio of 1.89, which demonstrates the ability of the company to cover short-term liquidity needs.
  • SUPERNUS 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. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, SUPERNUS PHARMACEUTICALS INC turned its bottom line around by earning $0.19 versus -$2.92 in the prior year. This year, the market expects an improvement in earnings ($0.20 versus $0.19).
  • SUPN, with its decline in revenue, underperformed when compared the industry average of 7.1%. Since the same quarter one year prior, revenues fell by 26.5%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • Compared to its closing price of one year ago, SUPN's share price has jumped by 126.20%, exceeding the performance of the broader market during that same time frame. Looking ahead, however, we cannot assume that the stock's past performance is going to drive future results. Quite to the contrary, its sharp appreciation over the last year is one of the factors that should prompt investors to seek better opportunities elsewhere.
  • 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 Pharmaceuticals industry. The net income has significantly decreased by 84.8% when compared to the same quarter one year ago, falling from $27.86 million to $4.22 million.

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