Trade-Ideas LLC identified Perrigo ( PRGO) as a pre-market mover with heavy volume candidate. In addition to specific proprietary factors, Trade-Ideas identified Perrigo as such a stock due to the following factors:

  • PRGO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $254.4 million.
  • PRGO traded 262,573 shares today in the pre-market hours as of 8:23 AM, representing 11.2% of its average daily volume.

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More details on PRGO:

Perrigo Company plc, together with its subsidiaries, develops, manufactures, markets, and distributes over-the-counter (OTC) consumer goods and pharmaceutical products worldwide. The stock currently has a dividend yield of 0.5%. PRGO has a PE ratio of 133. Currently there are 10 analysts that rate Perrigo a buy, no analysts rate it a sell, and 7 rate it a hold.

The average volume for Perrigo has been 1.9 million shares per day over the past 30 days. Perrigo has a market cap of $18.3 billion and is part of the health care sector and drugs industry. The stock has a beta of 0.66 and a short float of 6.7% with 3.92 days to cover. Shares are down 11.1% year-to-date as of the close of trading on Thursday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Perrigo as a hold. The company's strengths can be seen in multiple areas, such as its robust revenue growth, expanding profit margins and largely solid financial position with reasonable debt levels by most measures. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and weak operating cash flow.

Highlights from the ratings report include:
  • The revenue growth greatly exceeded the industry average of 2.1%. Since the same quarter one year prior, revenues rose by 33.0%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • 49.96% is the gross profit margin for PERRIGO CO PLC which we consider to be strong. It has increased from the same quarter the previous year. Regardless of the strong results of the gross profit margin, the net profit margin of -7.50% is in-line with the industry average.
  • The current debt-to-equity ratio, 0.60, is low and is below the industry average, implying that there has been successful management of debt levels. Despite the fact that PRGO's debt-to-equity ratio is low, the quick ratio, which is currently 0.65, displays a potential problem in covering short-term cash needs.
  • 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 Pharmaceuticals industry. The net income has significantly decreased by 252.4% when compared to the same quarter one year ago, falling from $70.20 million to -$107.00 million.
  • The company's current return on equity has slightly decreased from the same quarter one year prior. This implies a minor weakness in the organization. Compared to other companies in the Pharmaceuticals industry and the overall market, PERRIGO CO PLC's return on equity significantly trails that of both the industry average and the S&P 500.

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