Pacira Pharmaceuticals (PCRX) Hits New Lifetime High Today

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 Pacira Pharmaceuticals ( PCRX) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Pacira Pharmaceuticals as such a stock due to the following factors:

  • PCRX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $30.7 million.
  • PCRX has traded 5,138 shares today.
  • PCRX is trading at a new lifetime high.

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More details on PCRX:

Pacira Pharmaceuticals, Inc., a specialty pharmaceutical company, develops, commercializes, and manufactures pharmaceutical products for use in hospitals and ambulatory surgery centers worldwide. It develops pharmaceutical products based on its proprietary DepoFoam drug delivery technology. Currently there are 4 analysts that rate Pacira Pharmaceuticals a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Pacira Pharmaceuticals has been 462,600 shares per day over the past 30 days. Pacira has a market cap of $2.1 billion and is part of the health care sector and drugs industry. The stock has a beta of 1.49 and a short float of 23.2% with 9.87 days to cover. Shares are up 15.2% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Pacira Pharmaceuticals as a sell. The company's weaknesses can be seen in multiple areas, such as its generally high debt management risk and disappointing return on equity.

Highlights from the ratings report include:
  • The debt-to-equity ratio is very high at 2.02 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Along with the unfavorable debt-to-equity ratio, PCRX maintains a poor quick ratio of 0.80, which illustrates the inability to avoid short-term cash problems.
  • 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, PACIRA PHARMACEUTICALS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • PACIRA PHARMACEUTICALS INC has improved earnings per share by 10.2% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, PACIRA PHARMACEUTICALS INC continued to lose money by earning -$1.73 versus -$2.35 in the prior year. For the next year, the market is expecting a contraction of 7.2% in earnings (-$1.86 versus -$1.73).
  • The net income growth from the same quarter one year ago has exceeded that of the Pharmaceuticals industry average, but is less than that of the S&P 500. The net income increased by 6.1% when compared to the same quarter one year prior, going from -$15.75 million to -$14.78 million.
  • 42.12% is the gross profit margin for PACIRA PHARMACEUTICALS INC which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -63.56% is in-line with the industry average.

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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