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

  • REGN has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $390.3 million.
  • REGN traded 10,524 shares today in the pre-market hours as of 7:49 AM.
  • REGN is down 4.1% today from Friday's close.

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More details on REGN:

Regeneron Pharmaceuticals, Inc., a biopharmaceutical company, discovers, invents, develops, manufactures, and commercializes medicines for the treatment of serious medical conditions worldwide. REGN has a PE ratio of 166. Currently there are 12 analysts that rate Regeneron Pharmaceuticals a buy, no analysts rate it a sell, and 7 rate it a hold.

The average volume for Regeneron Pharmaceuticals has been 817,200 shares per day over the past 30 days. Regeneron has a market cap of $52.5 billion and is part of the health care sector and drugs industry. The stock has a beta of 0.71 and a short float of 5.9% with 5.60 days to cover. Shares are up 31.5% year-to-date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Regeneron Pharmaceuticals 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, solid stock price performance, growth in earnings per share and increase in net income. We feel its strengths outweigh the fact that the company has had somewhat disappointing return on equity.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 21.6%. Since the same quarter one year prior, revenues rose by 39.0%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
  • REGN's debt-to-equity ratio is very low at 0.16 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 3.88, which clearly demonstrates the ability to cover short-term cash needs.
  • Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 66.28% over the past year, a rise that has exceeded that of the S&P 500 Index. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
  • REGENERON PHARMACEUTICALS has improved earnings per share by 8.2% 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, REGENERON PHARMACEUTICALS reported lower earnings of $3.09 versus $3.80 in the prior year. This year, the market expects an improvement in earnings ($11.24 versus $3.09).
  • 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 11.3% when compared to the same quarter one year prior, going from $68.31 million to $76.02 million.

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