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 $16.5 million.
- HALO has traded 1.3 million shares today.
- HALO is down 3.2% today.
- HALO was up 12% 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, researches, develops, and commercializes human enzymes. Currently there are 2 analysts that rate Halozyme Therapeutics a buy, 1 analyst rates it a sell, and 1 rates it a hold. The average volume for Halozyme Therapeutics has been 2.3 million shares per day over the past 30 days. Halozyme 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 1.99 and a short float of 14.3% with 7.87 days to cover. Shares are down 39.6% 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 deteriorating net income, weak operating cash flow and feeble growth in its earnings per share. Highlights from the ratings report include:
- 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 37.6% when compared to the same quarter one year ago, falling from -$19.29 million to -$26.55 million.
- Net operating cash flow has significantly decreased to -$17.63 million or 63.98% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- HALOZYME THERAPEUTICS INC's earnings per share declined by 29.4% in the most recent quarter compared to the same quarter a year ago. The company has reported a trend of declining earnings per share over the past two years. However, the consensus estimate suggests that this trend should reverse in the coming year. During the past fiscal year, HALOZYME THERAPEUTICS INC reported poor results of -$0.73 versus -$0.49 in the prior year. This year, the market expects an improvement in earnings (-$0.54 versus -$0.73).
- The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength 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.
- HALO's debt-to-equity ratio of 0.75 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further. Even though the debt-to-equity ratio shows mixed results, the company's quick ratio of 4.83 is very high and demonstrates very strong liquidity.
- 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.