Trade-Ideas LLC identified ACADIA Pharmaceuticals ( ACAD) as a post-market leader 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 $85.4 million.
  • ACAD is up 2.3% today from today's close.

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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 6 analysts that rate ACADIA Pharmaceuticals a buy, no analysts rate it a sell, and 1 rates it a hold.

The average volume for ACADIA Pharmaceuticals has been 3.3 million shares per day over the past 30 days. ACADIA has a market cap of $4.0 billion and is part of the health care sector and drugs industry. The stock has a beta of 3.48 and a short float of 29.8% with 9.57 days to cover. Shares are up 3.2% year-to-date as of the close of trading on Thursday.

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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, weak operating cash flow and generally disappointing historical performance in the stock itself.

Highlights from the ratings report include:
  • ACADIA PHARMACEUTICALS INC's earnings per share declined by 12.5% in the most recent quarter compared to 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 11.0% in earnings (-$1.81 versus -$1.63).
  • 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 23.2% when compared to the same quarter one year ago, dropping from -$40.38 million to -$49.76 million.
  • Net operating cash flow has significantly decreased to -$41.21 million or 62.59% when compared to the same quarter last year. In addition, when comparing to the industry average, the firm's growth rate is much lower.
  • Reflecting the weaknesses we have cited, including the decline in the company's earnings per share, ACAD has underperformed the S&P 500 Index, declining 12.97% 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, ACADIA PHARMACEUTICALS INC's return on equity significantly trails that of both the industry average and the S&P 500.

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