Trade-Ideas: XenoPort (XNPT) Is Today's

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

  • XNPT has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $14.8 million.
  • XNPT has traded 53,031 shares today.
  • XNPT is down 3% today.
  • XNPT was up 7.9% yesterday.

EXCLUSIVE OFFER: Get the inside scoop on opportunities in XNPT with the Ticky from Trade-Ideas. See the FREE profile for XNPT NOW at Trade-Ideas

More details on XNPT:

XenoPort, Inc., a biopharmaceutical company, focuses on developing and commercializing a portfolio of product candidates for the treatment of neurological and other disorders. Currently there is 1 analyst that rates XenoPort a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for XenoPort has been 1.7 million shares per day over the past 30 days. XenoPort has a market cap of $341.2 million and is part of the health care sector and drugs industry. The stock has a beta of 2.06 and a short float of 15.7% with 2.94 days to cover. Shares are down 28.1% year-to-date as of the close of trading on Thursday.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates XenoPort as a sell. The company's weaknesses can be seen in multiple areas, such as its disappointing return on equity, weak operating cash flow, generally disappointing historical performance in the stock itself, unimpressive growth in net income and generally high debt management risk.

Highlights from the ratings report include:
  • 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 Pharmaceuticals industry and the overall market, XENOPORT 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 -$21.72 million or 960.01% 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 debt-to-equity ratio is very high at 2.15 and currently higher than the industry average, implying increased risk associated with the management of debt levels within the company. Despite the company's weak debt-to-equity ratio, the company has managed to keep a very strong quick ratio of 10.63, which shows the ability to cover short-term cash needs.
  • The share price of XENOPORT INC has not done very well: it is down 23.81% and has underperformed the S&P 500, in part reflecting the company's sharply declining earnings per share when compared to the year-earlier quarter. 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 change in net income from the same quarter one year ago has exceeded that of the Pharmaceuticals industry average, but is less than that of the S&P 500. The net income has significantly decreased by 26.3% when compared to the same quarter one year ago, falling from -$19.39 million to -$24.48 million.

EXCLUSIVE OFFER: See inside Jim Cramer's multi-million dollar charitable trust portfolio to see the stocks he thinks could be potential winners. Click here to see his holdings for 14-days FREE.

More from Markets

Rewind: Jim Cramer on the Market Selloff, Macy's, Constellation and Canopy

Rewind: Jim Cramer on the Market Selloff, Macy's, Constellation and Canopy

Loncar China BioPharma ETF Makes Nasdaq Debut

Loncar China BioPharma ETF Makes Nasdaq Debut

Stocks Close Lower But Trim Losses With Late Rebound

Stocks Close Lower But Trim Losses With Late Rebound

China Set to 'Weaponize' Yuan to Fight Trump's Trade War: Report

China Set to 'Weaponize' Yuan to Fight Trump's Trade War: Report

Jim Cramer on Canopy Growth's New $4 Billion Stake From Constellation Brands

Jim Cramer on Canopy Growth's New $4 Billion Stake From Constellation Brands