Alexion Pharmaceuticals (ALXN) Down In Pre-Market Trading

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 Alexion Pharmaceuticals ( ALXN) as a pre-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified Alexion Pharmaceuticals as such a stock due to the following factors:

  • ALXN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $246.3 million.
  • ALXN traded 187,555 shares today in the pre-market hours as of 8:48 AM.
  • ALXN is down 4.9% today from yesterday's close.

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More details on ALXN:

Alexion Pharmaceuticals, Inc., a biopharmaceutical company, develops and commercializes life-transforming therapeutic products. ALXN has a PE ratio of 59.1. Currently there are 15 analysts that rate Alexion Pharmaceuticals a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Alexion Pharmaceuticals has been 1.3 million shares per day over the past 30 days. Alexion has a market cap of $34.4 billion and is part of the health care sector and drugs industry. The stock has a beta of 1.18 and a short float of 2.6% with 2.15 days to cover. Shares are down 6.8% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Alexion Pharmaceuticals as a buy. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, good cash flow from operations, notable return on equity and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income.

Highlights from the ratings report include:
  • ALXN's revenue growth trails the industry average of 21.4%. Since the same quarter one year prior, revenues slightly increased by 6.0%. 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.
  • ALXN's debt-to-equity ratio is very low at 0.05 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with this, the company maintains a quick ratio of 4.14, which clearly demonstrates the ability to cover short-term cash needs.
  • Net operating cash flow has significantly increased by 174.17% to $23.03 million when compared to the same quarter last year. In addition, ALEXION PHARMACEUTICALS INC has also vastly surpassed the industry average cash flow growth rate of -4.91%.
  • ALEXION PHARMACEUTICALS INC's earnings per share declined by 43.0% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. But, we feel it is poised for EPS growth in the coming year. During the past fiscal year, ALEXION PHARMACEUTICALS INC increased its bottom line by earning $3.26 versus $1.26 in the prior year. This year, the market expects an improvement in earnings ($5.78 versus $3.26).
  • The return on equity has improved slightly when compared to the same quarter one year prior. This can be construed as a modest strength in the organization. Compared to other companies in the Biotechnology industry and the overall market on the basis of return on equity, ALEXION PHARMACEUTICALS INC has underperformed in comparison with the industry average, but has exceeded that of the S&P 500.

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