Today's Post-Market Laggard: Intercept Pharmaceuticals (ICPT)

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 Intercept Pharmaceuticals ( ICPT) as a post-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified Intercept Pharmaceuticals as such a stock due to the following factors:

  • ICPT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $183.3 million.
  • ICPT is down 13.5% today from today's close.

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More details on ICPT:

Intercept Pharmaceuticals, Inc., a development stage biopharmaceutical company, focuses on the development and commercialization of novel therapeutics to treat chronic liver diseases utilizing its proprietary bile acid chemistry. Currently there are 5 analysts that rate Intercept Pharmaceuticals a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Intercept Pharmaceuticals has been 829,500 shares per day over the past 30 days. Intercept has a market cap of $8.1 billion and is part of the health care sector and drugs industry. The stock has a beta of -2.91 and a short float of 10.4% with 1.29 days to cover. Shares are up 510.3% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Intercept Pharmaceuticals as a sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share and deteriorating net income.

Highlights from the ratings report include:
  • INTERCEPT PHARMA INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. For the next year, the market is expecting a contraction of 60.5% in earnings (-$3.66 versus -$2.28).
  • 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 511.9% when compared to the same quarter one year ago, falling from -$5.19 million to -$31.74 million.
  • The revenue fell significantly faster than the industry average of 15.1%. Since the same quarter one year prior, revenues fell by 22.4%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • Compared to other companies in the Biotechnology industry and the overall market, INTERCEPT PHARMA INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has fallen to -$6.44 million from having none in the same quarter last year. Since the company had no net operating cash flow for the prior period, we cannot calculate a percent change in order to compare its growth rate with that of its industry average.

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