Intercept Pharmaceuticals (ICPT) Is Today's Pre-Market Mover With Heavy Volume Stock

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 pre-market mover with heavy volume 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 $118.2 million.
  • ICPT traded 53,819 shares today in the pre-market hours as of 7:42 AM, representing 17% of its average daily volume.

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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 and intestinal diseases utilizing its proprietary bile acid chemistry. Currently there are 4 analysts that rate Intercept Pharmaceuticals a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Intercept Pharmaceuticals has been 454,700 shares per day over the past 30 days. Intercept has a market cap of $4.7 billion and is part of the health care sector and drugs industry. The stock has a beta of -3.22 and a short float of 9.9% with 2.51 days to cover. Shares are up 226.3% 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, deteriorating net income and weak operating cash flow.

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. Earnings per share have declined over the last year. We anticipate that this should continue in the coming year. During the past fiscal year, INTERCEPT PHARMA INC reported poor results of -$3.70 versus -$2.28 in the prior year. For the next year, the market is expecting a contraction of 274.9% in earnings (-$13.87 versus -$3.70).
  • 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 2423.7% when compared to the same quarter one year ago, falling from -$10.21 million to -$257.67 million.
  • Net operating cash flow has significantly decreased to -$12.32 million or 118.55% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • The revenue growth greatly trails the industry average of 41.0%. Since the same quarter one year prior, revenues have remained constant. Even though the company's revenue remained stagnant, the earnings per share decreased.
  • Compared to its closing price of one year ago, ICPT's share price has jumped by 381.18%, exceeding the performance of the broader market during that same time frame. Regarding the future course of this stock, we feel that the risks involved in investing in ICPT do not compensate for any future upside potential, despite the fact that it has seen nice gains over the past 12 months.

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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