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 Halozyme Therapeutics ( HALO) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Halozyme Therapeutics as such a stock due to the following factors:
- HALO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $24.4 million.
- HALO has traded 6.3 million shares today.
- HALO is down 4.4% today.
- HALO was up 6.9% yesterday.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in HALO with the Ticky from Trade-Ideas. See the FREE profile for HALO NOW at Trade-Ideas More details on HALO: Halozyme Therapeutics, Inc., a biopharmaceutical company, engages in the research, development, and commercialization of human enzymes. Currently there are 3 analysts that rate Halozyme Therapeutics a buy, 1 analyst rates it a sell, and 2 rate it a hold. The average volume for Halozyme Therapeutics has been 1.5 million shares per day over the past 30 days. Halozyme has a market cap of $1.1 billion and is part of the health care sector and drugs industry. The stock has a beta of 1.66 and a short float of 14.2% with 5.57 days to cover. Shares are up 47.1% 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 Halozyme Therapeutics as a sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity and generally high debt management risk. Highlights from the ratings report include:
- HALOZYME THERAPEUTICS INC has exprienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. Earnings per share have declined over the last year. We anticipate that this should continue in the coming year. During the past fiscal year, HALOZYME THERAPEUTICS INC reported poor results of -$0.49 versus -$0.20 in the prior year. For the next year, the market is expecting a contraction of 44.9% in earnings (-$0.71 versus -$0.49).
- 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 63.4% when compared to the same quarter one year ago, falling from -$14.02 million to -$22.91 million.
- 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 Biotechnology industry and the overall market, HALOZYME THERAPEUTICS INC's return on equity significantly trails that of both the industry average and the S&P 500.
- The debt-to-equity ratio is very high at 2.86 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Despite the company's weak debt-to-equity ratio, the company has managed to keep a very strong quick ratio of 2.65, which shows the ability to cover short-term cash needs.
- Compared to its closing price of one year ago, HALO's share price has jumped by 58.30%, exceeding the performance of the broader market during that same time frame. Regarding the future course of this stock, we feel that the risks involved in investing in HALO do not compensate for any future upside potential, despite the fact that it has seen nice gains over the past 12 months.
- You can view the full Halozyme Therapeutics 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.