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

  • PTCT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $30.2 million.
  • PTCT has traded 107,426 shares today.
  • PTCT is up 3.1% today.
  • PTCT was down 5.1% yesterday.

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More details on PTCT:

PTC Therapeutics, Inc., a biopharmaceutical company, focuses on the discovery, development, and commercialization of orally administered, small molecule drugs that target post-transcriptional control processes. Currently there are 7 analysts that rate PTC Therapeutics a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for PTC Therapeutics has been 731,600 shares per day over the past 30 days. PTC has a market cap of $1.7 billion and is part of the health care sector and drugs industry. Shares are down 2.9% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates PTC Therapeutics as a sell. The company's weaknesses can be seen in multiple areas, such as its feeble growth in its earnings per share, deteriorating net income, disappointing return on equity and weak operating cash flow.

Highlights from the ratings report include:
  • PTC THERAPEUTICS INC has experienced a steep decline in earnings per share in the most recent quarter in comparison to its performance from the same quarter a year ago. Earnings per share have declined over the last year. We anticipate that this should continue in the coming year. During the past fiscal year, PTC THERAPEUTICS INC reported poor results of -$3.21 versus -$1.56 in the prior year. For the next year, the market is expecting a contraction of 42.8% in earnings (-$4.59 versus -$3.21).
  • The company, on the basis of change in net income from the same quarter one year ago, has significantly underperformed when compared to that of the S&P 500 and the Biotechnology industry. The net income has significantly decreased by 168.9% when compared to the same quarter one year ago, falling from -$14.10 million to -$37.92 million.
  • Return on equity has greatly decreased when compared to its ROE from the same quarter one year prior. This is a signal of major weakness within the corporation. Compared to other companies in the Biotechnology industry and the overall market, PTC THERAPEUTICS INC's return on equity significantly trails that of both the industry average and the S&P 500.
  • Net operating cash flow has significantly decreased to -$36.43 million or 171.05% 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 revenue fell significantly faster than the industry average of 21.9%. Since the same quarter one year prior, revenues fell by 18.8%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.

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