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

  • PRTA has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $22.8 million.
  • PRTA has traded 312,911 shares today.
  • PRTA is up 3% today.
  • PRTA was down 8.4% yesterday.

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More details on PRTA:

Prothena Corporation plc, a late-stage clinical biotechnology company, focuses on the discovery, development, and commercialization of protein immunotherapy programs for the treatment of diseases that involve amyloid or cell adhesion in Ireland. Currently there are 5 analysts that rate Prothena a buy, no analysts rate it a sell, and none rate it a hold.

The average volume for Prothena has been 610,200 shares per day over the past 30 days. Prothena has a market cap of $1.1 billion and is part of the health care sector and drugs industry. The stock has a beta of 2.16 and a short float of 14.7% with 5.03 days to cover. Shares are down 53.2% year-to-date as of the close of trading on Monday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Prothena 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 and disappointing return on equity.

Highlights from the ratings report include:
  • PROTHENA CORP PLC 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 two years. We anticipate that this should continue in the coming year. During the past fiscal year, PROTHENA CORP PLC reported poor results of -$2.63 versus -$0.12 in the prior year. For the next year, the market is expecting a contraction of 40.1% in earnings (-$3.69 versus -$2.63).
  • 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 84.3% when compared to the same quarter one year ago, falling from -$13.11 million to -$24.16 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, PROTHENA CORP PLC's return on equity significantly trails that of both the industry average and the S&P 500.
  • PRTA, with its very weak revenue results, has greatly underperformed against the industry average of 6.4%. Since the same quarter one year prior, revenues plummeted by 84.7%. Weakness in the company's revenue seems to have hurt the bottom line, decreasing earnings per share.
  • PRTA 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.

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