Perilous Reversal Stock: Progenics Pharmaceuticals (PGNX)

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

  • PGNX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $13.7 million.
  • PGNX has traded 482,397 shares today.
  • PGNX is down 3.2% today.
  • PGNX was up 7.6% yesterday.

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More details on PGNX:

Progenics Pharmaceuticals, Inc. develops medicines for oncology in the United States and internationally. PGNX has a PE ratio of 121. Currently there is 1 analyst that rates Progenics Pharmaceuticals a buy, no analysts rate it a sell, and 2 rate it a hold.

The average volume for Progenics Pharmaceuticals has been 950,200 shares per day over the past 30 days. Progenics has a market cap of $506.3 million and is part of the health care sector and drugs industry. The stock has a beta of 2.75 and a short float of 25.9% with 6.62 days to cover. Shares are up 3.4% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Progenics Pharmaceuticals as a hold. The company's strengths can be seen in multiple areas, such as its largely solid financial position with reasonable debt levels by most measures, notable return on equity and solid stock price performance. However, as a counter to these strengths, we also find weaknesses including unimpressive growth in net income and weak operating cash flow.

Highlights from the ratings report include:
  • PGNX has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. Along with this, the company maintains a quick ratio of 20.05, which clearly demonstrates the ability to cover short-term cash needs.
  • PROGENICS PHARMACEUTICAL INC 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, PROGENICS PHARMACEUTICAL INC turned its bottom line around by earning $0.01 versus -$0.77 in the prior year. For the next year, the market is expecting a contraction of 5700.0% in earnings (-$0.56 versus $0.01).
  • Net operating cash flow has decreased to -$10.88 million or 16.82% 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 company, on the basis of change in net income 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 has decreased by 10.1% when compared to the same quarter one year ago, dropping from -$9.31 million to -$10.25 million.

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