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 AVANIR Pharmaceuticals ( AVNR) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified AVANIR Pharmaceuticals as such a stock due to the following factors:
- AVNR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $20.6 million.
- AVNR has traded 628,370 shares today.
- AVNR is up 3.5% today.
- AVNR was down 13.4% yesterday.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in AVNR with the Ticky from Trade-Ideas. See the FREE profile for AVNR NOW at Trade-Ideas More details on AVNR: Avanir Pharmaceuticals, Inc., together with its subsidiaries, engages in acquiring, developing, and commercializing novel therapeutic products for the treatment of central nervous system disorders primarily in the United States. Currently there are 6 analysts that rate AVANIR Pharmaceuticals a buy, no analysts rate it a sell, and 1 rates it a hold. The average volume for AVANIR Pharmaceuticals has been 2.4 million shares per day over the past 30 days. AVANIR has a market cap of $804.4 million and is part of the health care sector and drugs industry. The stock has a beta of 0.84 and a short float of 19.4% with 4.39 days to cover. Shares are up 111.3% year to date as of the close of trading on Wednesday. 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 AVANIR Pharmaceuticals as a sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity and generally high debt management risk. Highlights from the ratings report include:
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Pharmaceuticals industry and the overall market, AVANIR PHARMACEUTICALS INC's return on equity significantly trails that of both the industry average and the S&P 500.
- The debt-to-equity ratio of 1.31 is relatively high when compared with the industry average, suggesting a need for better debt level management. Despite the company's weak debt-to-equity ratio, the company has managed to keep a very strong quick ratio of 2.51, which shows the ability to cover short-term cash needs.
- The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Pharmaceuticals industry average, but is greater than that of the S&P 500. The net income increased by 24.0% when compared to the same quarter one year prior, going from -$15.03 million to -$11.42 million.
- The gross profit margin for AVANIR PHARMACEUTICALS INC is currently very high, coming in at 95.61%. Regardless of AVNR's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, AVNR's net profit margin of -57.81% significantly underperformed when compared to the industry average.
- Net operating cash flow has increased to -$12.98 million or 13.16% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -1.32%.
- You can view the full AVANIR Pharmaceuticals Ratings Report.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. Learn more.