Why Chimerix (CMRX) Stock Is Up Today

NEW YORK (TheStreet) -- Chimerix  (CMRX) rose Wednesday after the biopharmaceutical company priced its secondary offering of common stock.

The company increased its offering to 7.3 million shares from 6.2 million shares and priced it at $14.22 a share. Morgan Stanley and J.P. Morgan acted as joint book running managers for the offering.

The stock was up 12.73% to $16.03 at 11:26 a.m. More than 3.1 million shares had changed hands, which surpassed the average volume of 299,827.

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Separately, TheStreet Ratings team rates CHIMERIX INC as a "sell" with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:

"We rate CHIMERIX INC (CMRX) a SELL. This is driven by a number of negative factors, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. 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 analysis by TheStreet Ratings Team goes as follows:

  • CHIMERIX INC's earnings per share declined by 5.4% in the most recent quarter compared to the same quarter a year ago. For the next year, the market is expecting a contraction of 27.6% in earnings (-$1.85 versus -$1.45).
  • 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 decreased by 14.0% when compared to the same quarter one year ago, dropping from -$9.11 million to -$10.38 million.
  • CMRX, with its very weak revenue results, has greatly underperformed against the industry average of 25.7%. Since the same quarter one year prior, revenues plummeted by 56.0%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share.
  • Reflecting the weaknesses we have cited, including the decline in the company's earnings per share, CMRX has underperformed the S&P 500 Index, declining 20.20% from its price level of one year ago.
  • Compared to other companies in the Biotechnology industry and the overall market, CHIMERIX INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • You can view the full analysis from the report here: CMRX Ratings Report

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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.

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