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

  • CLDX has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $36.1 million.
  • CLDX has traded 808,071 shares today.
  • CLDX is down 3% today.
  • CLDX was up 8.2% yesterday.

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More details on CLDX:

Celldex Therapeutics, Inc., a biopharmaceutical company, develops, manufactures, and commercializes novel therapeutics for human health care in the United States. Currently there are 8 analysts that rate Celldex Therapeutics a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Celldex Therapeutics has been 1.6 million shares per day over the past 30 days. Celldex has a market cap of $1.3 billion and is part of the health care sector and drugs industry. The stock has a beta of 2.32 and a short float of 19.4% with 6.26 days to cover. Shares are down 23.5% year-to-date as of the close of trading on Tuesday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Celldex Therapeutics as a sell. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, weak operating cash flow, feeble growth in its earnings per share and generally disappointing historical performance in the stock itself.

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 decreased by 14.4% when compared to the same quarter one year ago, dropping from -$28.27 million to -$32.36 million.
  • Net operating cash flow has decreased to -$24.76 million or 18.72% when compared to the same quarter last year. In addition, when comparing the cash generation rate to the industry average, the firm's growth is significantly lower.
  • CELLDEX THERAPEUTICS INC' earnings per share from the most recent quarter came in slightly below the year earlier quarter. Earnings per share have declined over the last two years. We anticipate that this should continue in the coming year. During the past fiscal year, CELLDEX THERAPEUTICS INC reported poor results of -$1.32 versus -$1.03 in the prior year. For the next year, the market is expecting a contraction of 3.8% in earnings (-$1.37 versus -$1.32).
  • Reflecting the weaknesses we have cited, including the decline in the company's earnings per share, CLDX has underperformed the S&P 500 Index, declining 10.79% from its price level of one year ago. The fact that the stock is now selling for less than others in its industry in relation to its current earnings is not reason enough to justify a buy rating at this time.
  • 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, CELLDEX THERAPEUTICS INC's return on equity significantly trails that of both the industry average and the S&P 500.

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