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NEW YORK (TheStreet) -- Hyperion Therapeutics (HPTX) has been downgraded by TheStreet Ratings from Hold to Sell with a ratings score of D. TheStreet Ratings Team has this to say about their recommendation:
"We rate HYPERION THERAPEUTICS INC (HPTX) 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 deteriorating net income, disappointing return on equity, weak operating cash flow and feeble growth in its earnings per share."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- 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 29643.2% when compared to the same quarter one year ago, falling from $0.11 million to -$32.79 million.
- Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Biotechnology industry and the overall market, HYPERION THERAPEUTICS INC's return on equity significantly trails that of both the industry average and the S&P 500.
- Net operating cash flow has significantly decreased to -$0.45 million or 284.29% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
- HYPERION THERAPEUTICS 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. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, HYPERION THERAPEUTICS INC turned its bottom line around by earning $0.68 versus -$2.00 in the prior year. For the next year, the market is expecting a contraction of 229.4% in earnings (-$0.88 versus $0.68).
- In its most recent trading session, HPTX has closed at a price level that was not very different from its closing price of one year earlier. This is probably due to its weak earnings growth as well as other mixed factors. Regardless of the rise in share value over the previous year, we feel that the risks involved in investing in this stock do not compensate for any future upside potential.
- You can view the full analysis from the report here: HPTX Ratings Report