Today's Dead Cat Bounce Stock: Receptos (RCPT)

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 Receptos ( RCPT) as a "dead cat bounce" (down big yesterday but up big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Receptos as such a stock due to the following factors:

  • RCPT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $20.7 million.
  • RCPT has traded 113,247 shares today.
  • RCPT is up 5.8% today.
  • RCPT was down 5.1% yesterday.

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More details on RCPT:

Receptos, Inc., a clinical-stage biopharmaceutical company, focuses on the discovery, development, and commercialization of various therapeutics for immune disorders. Currently there is 1 analyst that rates Receptos a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Receptos has been 454,700 shares per day over the past 30 days. Receptos has a market cap of $1.4 billion and is part of the health care sector and drugs industry. Shares are up 62.3% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Receptos as a hold. The company's strengths can be seen in multiple areas, such as its solid stock price performance, largely solid financial position with reasonable debt levels by most measures and notable return on equity. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share, deteriorating net income and weak operating cash flow.

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