Trade-Ideas LLC identified ACADIA Pharmaceuticals ( ACAD) as a "water-logged and getting wetter" (weak stocks crossing below support with today's range greater than 200%) candidate. In addition to specific proprietary factors, Trade-Ideas identified ACADIA Pharmaceuticals as such a stock due to the following factors:
- ACAD has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $70.7 million.
- ACAD has traded 4.5 million shares today.
- ACAD traded in a range 206% of the normal price range with a price range of $3.26.
- ACAD traded below its daily resistance level (quality: 19 days, meaning that the stock is crossing a resistance level set by the last 19 calendar days. The resistance price is defined by the Price - $0.01 at the time of the signal).
Stocks matching the 'Water-Logged and Getting Wetter' criteria are worthwhile stocks to watch for a variety of factors including historical back testing and volatility. Trade-Ideas targets these opportunities because the stock is exhibiting an unusual behavior while displaying negative price action. In this case, the stock crossed an important inflection point; namely, "support" while at the same time the range of the stock's movement in price is twice its normal size. This large range foreshadows a possible continuation as the stock moves lower. EXCLUSIVE OFFER: Get the inside scoop on opportunities in ACAD with the Ticky from Trade-Ideas. See the FREE profile for ACAD NOW at Trade-Ideas More details on ACAD: ACADIA Pharmaceuticals Inc., a biopharmaceutical company, focuses on the development and commercialization of small molecule drugs that address unmet medical needs in central nervous system disorders. Currently there are 7 analysts that rate ACADIA Pharmaceuticals a buy, no analysts rate it a sell, and none rate it a hold. The average volume for ACADIA Pharmaceuticals has been 3.1 million shares per day over the past 30 days. ACADIA has a market cap of $3.7 billion and is part of the health care sector and drugs industry. The stock has a beta of 3.64 and a short float of 24.1% with 8.82 days to cover. Shares are down 9.1% 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 ACADIA Pharmaceuticals 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, disappointing return on equity, weak operating cash flow and generally disappointing historical performance in the stock itself. Highlights from the ratings report include:
- ACADIA PHARMACEUTICALS INC 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, ACADIA PHARMACEUTICALS INC reported poor results of -$1.63 versus -$0.94 in the prior year. For the next year, the market is expecting a contraction of 4.0% in earnings (-$1.70 versus -$1.63).
- 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 61.4% when compared to the same quarter one year ago, falling from -$28.37 million to -$45.78 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, ACADIA PHARMACEUTICALS 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 -$34.72 million or 95.05% 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.
- The share price of ACADIA PHARMACEUTICALS INC has not done very well: it is down 10.05% 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.
- You can view the full ACADIA Pharmaceuticals Ratings Report.
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