Shire (SHPG): Heavy Pre-Market Activity

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 Shire ( SHPG) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Shire as such a stock due to the following factors:

  • SHPG has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $155.4 million.
  • SHPG traded 109,234 shares today in the pre-market hours as of 8:29 AM, representing 16.9% of its average daily volume.

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More details on SHPG:

Shire plc, a biopharmaceutical company, together with its subsidiaries, researches, develops, licenses, manufactures, markets, distributes, and sells pharmaceutical products. The stock currently has a dividend yield of 0.3%. SHPG has a PE ratio of 66.3. Currently there are 9 analysts that rate Shire a buy, no analysts rate it a sell, and 5 rate it a hold.

The average volume for Shire has been 717,600 shares per day over the past 30 days. Shire has a market cap of $48.7 billion and is part of the health care sector and drugs industry. Shares are up 14.8% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Shire as a buy. 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, notable return on equity, solid stock price performance and compelling growth in net income. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 11.1%. Since the same quarter one year prior, revenues rose by 18.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
  • SHPG'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. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.39, which illustrates the ability to avoid short-term cash problems.
  • 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 Pharmaceuticals industry and the overall market, SHIRE PLC's return on equity significantly exceeds that of both the industry average and the S&P 500.
  • Powered by its strong earnings growth of 260.00% and other important driving factors, this stock has surged by 41.78% over the past year, outperforming the rise in the S&P 500 Index during the same period. Regarding the stock's future course, although almost any stock can fall in a broad market decline, SHPG should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
  • The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Pharmaceuticals industry. The net income increased by 3294.2% when compared to the same quarter one year prior, rising from $64.00 million to $2,172.30 million.

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