Today's Post-Market Loser: 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 post-market laggard 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 $60.3 million.
  • RCPT is down 2.1% today from today's close.

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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 are 3 analysts that rate Receptos a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Receptos has been 581,700 shares per day over the past 30 days. Receptos has a market cap of $3.1 billion and is part of the health care sector and drugs industry. Shares are up 267.5% year-to-date as of the close of trading on Friday.

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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 robust revenue growth, largely solid financial position with reasonable debt levels by most measures and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including feeble growth in the company's earnings per share and deteriorating net income.

Highlights from the ratings report include:
  • RCPT's very impressive revenue growth greatly exceeded the industry average of 41.4%. Since the same quarter one year prior, revenues leaped by 202.1%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • RCPT's debt-to-equity ratio is very low at 0.10 and is currently below that of the industry average, implying that there has been very successful management of debt levels.
  • Compared to other companies in the Biotechnology industry and the overall market, RECEPTOS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • RECEPTOS INC's earnings per share declined by 35.2% in the most recent quarter compared to the same quarter a year ago. For the next year, the market is expecting a contraction of 67.9% in earnings (-$4.59 versus -$2.73).
  • 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 106.6% when compared to the same quarter one year ago, falling from -$15.57 million to -$32.17 million.

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