Barbarian At The Gate: Aegerion Pharmaceuticals (AEGR)

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 Aegerion Pharmaceuticals ( AEGR) as a "barbarian at the gate" (strong stocks crossing above resistance with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified Aegerion Pharmaceuticals as such a stock due to the following factors:

  • AEGR has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $32.3 million.
  • AEGR has traded 745,432 shares today.
  • AEGR traded in a range 228.3% of the normal price range with a price range of $3.18.
  • AEGR traded above its daily resistance level (quality: 10 days, meaning that the stock is crossing a resistance level set by the last 10 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).

Stocks matching the 'Barbarian at the Gate' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying positive price action. In this case, the stock crossed an important inflection point; namely, 'resistance' while at the same time the range of the stock's movement in price is more than twice its normal size. This large range foreshadows a possible continuation as the stock moves higher.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in AEGR with the Ticky from Trade-Ideas. See the FREE profile for AEGR NOW at Trade-Ideas

More details on AEGR:

Aegerion Pharmaceuticals, Inc., a biopharmaceutical company, develops and commercializes therapies for patients with debilitating rare diseases in the United States. Currently there are 7 analysts that rate Aegerion Pharmaceuticals a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Aegerion Pharmaceuticals has been 1.1 million shares per day over the past 30 days. Aegerion has a market cap of $958.8 million and is part of the health care sector and drugs industry. The stock has a beta of 0.23 and a short float of 44.7% with 9.81 days to cover. Shares are down 54.5% year-to-date as of the close of trading on Friday.

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 Aegerion Pharmaceuticals as a sell. Among the areas we feel are negative, one of the most important has been a generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:
  • AEGR's stock share price has done very poorly compared to where it was a year ago: Despite any rallies, the net result is that it is down by 61.67%, which is also worse that the performance of the S&P 500 Index. Investors have so far failed to pay much attention to the earnings improvements the company has managed to achieve over the last quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • The company, on the basis of net income growth from the same quarter one year ago, has significantly underperformed compared to the Biotechnology industry average, but is greater than that of the S&P 500. The net income increased by 49.1% when compared to the same quarter one year prior, rising from -$18.90 million to -$9.62 million.
  • 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, AEGERION PHARMACEUTICALS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • The gross profit margin for AEGERION PHARMACEUTICALS INC is currently very high, coming in at 89.10%. Regardless of AEGR's high profit margin, it has managed to decrease from the same period last year. Despite the mixed results of the gross profit margin, AEGR's net profit margin of -26.71% significantly underperformed when compared to the industry average.
  • Net operating cash flow has increased to -$10.66 million or 11.93% when compared to the same quarter last year. Despite an increase in cash flow of 11.93%, AEGERION PHARMACEUTICALS INC is still growing at a significantly lower rate than the industry average of 101.98%.

STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.

null

More from Markets

Asia Markets Fall on Latest Tariff Threats From Trump

Asia Markets Fall on Latest Tariff Threats From Trump

Google Invests in JD.com; Comcast-Disney Battle Nears Head -- ICYMI

Google Invests in JD.com; Comcast-Disney Battle Nears Head -- ICYMI

REPLAY: Jim Cramer on Tariff Worries, Oil, Alphabet and Centene

REPLAY: Jim Cramer on Tariff Worries, Oil, Alphabet and Centene

Video: Athens Stock Exchange CEO on What's Next for Greece's Debt Woes

Video: Athens Stock Exchange CEO on What's Next for Greece's Debt Woes

Dow Drops Over 100 Points on Trade War Worries

Dow Drops Over 100 Points on Trade War Worries