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 Sarepta Therapeutics ( SRPT) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Sarepta Therapeutics as such a stock due to the following factors:
- SRPT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $37.1 million.
- SRPT has traded 248,675 shares today.
- SRPT is down 3.4% today.
- SRPT was up 7.6% yesterday.
EXCLUSIVE OFFER: Get the inside scoop on opportunities in SRPT with the Ticky from Trade-Ideas. See the FREE profile for SRPT NOW at Trade-Ideas More details on SRPT: Sarepta Therapeutics, Inc., a biopharmaceutical company, focuses on the discovery and development of RNA-based therapeutics for the treatment of rare and infectious diseases. Currently there are 7 analysts that rate Sarepta Therapeutics a buy, 1 analyst rates it a sell, and 7 rate it a hold. The average volume for Sarepta Therapeutics has been 1.9 million shares per day over the past 30 days. Sarepta has a market cap of $1.0 billion and is part of the health care sector and drugs industry. The stock has a beta of 1.11 and a short float of 39.8% with 9.87 days to cover. Shares are up 47.5% year-to-date as of the close of trading on Monday. 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 Sarepta Therapeutics as a sell. Among the areas we feel are negative, one of the most important has been weak operating cash flow. Highlights from the ratings report include:
- Net operating cash flow has significantly decreased to -$19.88 million or 154.68% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- In its most recent trading session, SRPT has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Turning our attention to the future direction of the stock, we do not believe this stock offers ample reward opportunity to compensate for the risks, despite the fact that it rose over the past year.
- The revenue fell significantly faster than the industry average of 15.7%. Since the same quarter one year prior, revenues fell by 45.0%. The declining revenue has not hurt the company's bottom line, with increasing earnings per share.
- SAREPTA THERAPEUTICS INC has improved earnings per share by 42.9% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, SAREPTA THERAPEUTICS INC reported poor results of -$4.95 versus -$0.06 in the prior year. This year, the market expects an improvement in earnings (-$3.79 versus -$4.95).
- The net income growth from the same quarter one year ago has exceeded that of the Biotechnology industry average, but is less than that of the S&P 500. The net income increased by 15.2% when compared to the same quarter one year prior, going from -$49.55 million to -$42.03 million.
- You can view the full Sarepta 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.