Omeros (OMER) Hits New Lifetime High Today

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 Omeros ( OMER) as a new lifetime high candidate. In addition to specific proprietary factors, Trade-Ideas identified Omeros as such a stock due to the following factors:

  • OMER has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $12.6 million.
  • OMER has traded 21,874 shares today.
  • OMER is trading at a new lifetime high.

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More details on OMER:

Omeros Corporation, a clinical-stage biopharmaceutical company, discovers, develops, and commercializes products targeting inflammation, coagulopathies, and disorders of the central nervous system. Currently there are 2 analysts that rate Omeros a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Omeros has been 394,800 shares per day over the past 30 days. Omeros has a market cap of $646.8 million and is part of the health care sector and drugs industry. The stock has a beta of 2.65 and a short float of 20.6% with 11.49 days to cover. Shares are up 74.8% year-to-date as of the close of trading on Monday.

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 Omeros as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, weak operating cash flow and feeble growth in its earnings per share.

Highlights from the ratings report include:
  • 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 Pharmaceuticals industry. The net income has significantly decreased by 32.1% when compared to the same quarter one year ago, falling from -$13.87 million to -$18.33 million.
  • Net operating cash flow has decreased to -$15.94 million or 44.42% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • OMEROS CORP's earnings per share declined by 17.4% in the most recent quarter compared to 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, OMEROS CORP continued to lose money by earning -$1.39 versus -$1.59 in the prior year. For the next year, the market is expecting a contraction of 62.9% in earnings (-$2.27 versus -$1.39).
  • Compared to its closing price of one year ago, OMER's share price has jumped by 125.72%, 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 OMER do not compensate for any future upside potential, despite the fact that it has seen nice gains over the past 12 months.
  • The revenue growth came in higher than the industry average of 8.7%. Since the same quarter one year prior, revenues slightly increased by 9.2%. 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.

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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