Trade-Ideas: Inovio Pharmaceuticals (INO) Is Today's

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.

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

  • INO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $14.2 million.
  • INO has traded 73,715 shares today.
  • INO is up 3.6% today.
  • INO was down 17.2% yesterday.

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More details on INO:

Inovio Pharmaceuticals, Inc., a clinical stage biopharmaceutical company, develops active DNA immunotherapies and vaccines in combination with proprietary electroporation delivery devices to prevent and treat cancers and infectious diseases. Currently there are 6 analysts that rate Inovio Pharmaceuticals a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Inovio Pharmaceuticals has been 1.0 million shares per day over the past 30 days. Inovio has a market cap of $589.8 million and is part of the health care sector and drugs industry. The stock has a beta of 3.56 and a short float of 22.7% with 7.78 days to cover. Shares are up 5.8% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Inovio Pharmaceuticals as a sell. Among the areas we feel are negative, one of the most important has been weak operating cash flow.

Highlights from the ratings report include:
  • Net operating cash flow has significantly decreased to -$8.08 million or 1021.80% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • 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, INOVIO PHARMACEUTICALS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • In its most recent trading session, INO 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. Turning our attention to the future direction of the stock, we do not believe this stock offers ample reward opportunity to compensate for the risks, despite the fact that it rose over the past year.
  • 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 52.0% when compared to the same quarter one year prior, rising from -$15.45 million to -$7.41 million.
  • INOVIO PHARMACEUTICALS INC reported significant earnings per share improvement in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past year. However, we anticipate underperformance relative to this pattern in the coming year. During the past fiscal year, INOVIO PHARMACEUTICALS INC continued to lose money by earning -$0.63 versus -$1.40 in the prior year. For the next year, the market is expecting a contraction of 15.9% in earnings (-$0.73 versus -$0.63).

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