Trade-Ideas: Dyax (DYAX) 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 Dyax ( DYAX) as a "perilous reversal" (up big yesterday but down big today) candidate. In addition to specific proprietary factors, Trade-Ideas identified Dyax as such a stock due to the following factors:

  • DYAX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $44.1 million.
  • DYAX has traded 240,455 shares today.
  • DYAX is down 3% today.
  • DYAX was up 5.9% yesterday.

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More details on DYAX:

Dyax Corp., a biopharmaceutical company, identifies, develops, and commercializes treatments for hereditary angioedema (HAE) and other plasma-kallikrein-mediated (PKM) disorders. It offers KALBITOR for the treatment of acute attacks of HAE. Currently there are 7 analysts that rate Dyax a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for Dyax has been 2.0 million shares per day over the past 30 days. Dyax has a market cap of $3.5 billion and is part of the health care sector and drugs industry. The stock has a beta of 0.43 and a short float of 4.2% with 4.59 days to cover. Shares are up 72.5% year-to-date as of the close of trading on Wednesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Dyax as a sell. Among the areas we feel are negative, one of the most important has been unimpressive growth in net income over time.

Highlights from the ratings report include:
  • The company, on the basis of change in net income from the same quarter one year ago, has underperformed when compared to that of the S&P 500 and greatly underperformed compared to the Biotechnology industry average. The net income has significantly decreased by 27.3% when compared to the same quarter one year ago, falling from -$5.71 million to -$7.27 million.
  • Current return on equity exceeded its ROE from the same quarter one year prior. This is a clear sign of strength within the company. Compared to other companies in the Biotechnology industry and the overall market, DYAX CORP's return on equity significantly trails that of both the industry average and the S&P 500.
  • DYAX's debt-to-equity ratio of 0.81 is somewhat low overall, but it is high when compared to the industry average, implying that the management of the debt levels should be evaluated further.
  • DYAX CORP reported flat earnings per share in the most recent quarter. 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, DYAX CORP continued to lose money by earning -$0.10 versus -$0.27 in the prior year. For the next year, the market is expecting a contraction of 90.0% in earnings (-$0.19 versus -$0.10).
  • Compared to its closing price of one year ago, DYAX's share price has jumped by 261.72%, 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 DYAX do not compensate for any future upside potential, despite the fact that it has seen nice gains over the past 12 months.

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