Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.
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 Receptos as such a stock due to the following factors:
- RCPT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $86.4 million.
- RCPT has traded 58,579 shares today.
- RCPT is down 3.1% today.
- RCPT was up 41.4% yesterday.
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More details on RCPT:
Receptos, Inc., a clinical-stage biopharmaceutical company, focuses on the discovery, development, and commercialization of various therapeutics for immune disorders. Currently there are 3 analysts that rate Receptos a buy, no analysts rate it a sell, and none rate it a hold.
The average volume for Receptos has been 489,800 shares per day over the past 30 days. Receptos has a market cap of $1.8 billion and is part of the health care sector and drugs industry. Shares are up 230.3% year-to-date as of the close of trading on Tuesday.
rates Receptos as a
. The company's strengths can be seen in multiple areas, such as its solid stock price performance, largely solid financial position with reasonable debt levels by most measures and notable return on equity. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and weak operating cash flow.
Highlights from the ratings report include:
- Compared to its closing price of one year ago, RCPT's share price has jumped by 96.76%, exceeding the performance of the broader market during that same time frame. Regarding the stock's future course, our hold rating indicates that we do not recommend additional investment in this stock despite its gains in the past year.
- RCPT's debt-to-equity ratio is very low at 0.05 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 19.17, which clearly demonstrates the ability to cover short-term cash needs.
- Compared to other companies in the Biotechnology industry and the overall market, RECEPTOS INC's return on equity significantly trails that of both the industry average and the S&P 500.
- RECEPTOS 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 48.4% in earnings (-$4.05 versus -$2.73).
- 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 133.4% when compared to the same quarter one year ago, falling from -$9.92 million to -$23.15 million.
- You can view the full Receptos Ratings Report.