Trade-Ideas: Organovo Holdings (ONVO) Is Today's

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

  • ONVO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $18.0 million.
  • ONVO has traded 945,632 shares today.
  • ONVO is up 3.3% today.
  • ONVO was down 5.8% yesterday.

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More details on ONVO:

Organovo Holdings, Inc. develops three-dimensional (3D) bioprinting technology for creating functional human tissues on demand for research and medical applications. Currently there are no analysts that rate Organovo Holdings a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Organovo Holdings has been 2.3 million shares per day over the past 30 days. Organovo has a market cap of $448.3 million and is part of the health care sector and health services industry. Shares are up 125.4% year to date as of the close of trading on Thursday.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Organovo Holdings as a sell. The area that we feel has been the company's primary weakness has been its disappointing return on equity.

Highlights from the ratings report include:
  • Compared to other companies in the Biotechnology industry and the overall market, ORGANOVO HOLDINGS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has increased to -$2.76 million or 22.52% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -19.72%.
  • ONVO's debt-to-equity ratio is very low at 0.00 and is currently below that of the industry average, implying that there has been very successful management of debt levels. To add to this, ONVO has a quick ratio of 1.88, which demonstrates the ability of the company to cover short-term liquidity needs.
  • This stock has increased by 171.29% over the past year, outperforming the rise in the S&P 500 Index during the same period. Despite the fact that the stock's value has already enjoyed nice gains in the past year, we feel that the risks surrounding an investment in this stock outweigh any potential future returns.
  • ORGANOVO HOLDINGS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.
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