Today's Dead Cat Bounce Stock: Halozyme Therapeutics (HALO)

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

  • HALO has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $14.2 million.
  • HALO has traded 295,681 shares today.
  • HALO is up 3.4% today.
  • HALO was down 6.1% yesterday.

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

More details on HALO:

Halozyme Therapeutics, Inc., a biotechnology company, researches, develops, and commercializes human enzymes. Currently there are 4 analysts that rate Halozyme Therapeutics a buy, 1 analyst rates it a sell, and none rate it a hold.

The average volume for Halozyme Therapeutics has been 1.6 million shares per day over the past 30 days. Halozyme has a market cap of $1.2 billion and is part of the health care sector and drugs industry. The stock has a beta of 1.81 and a short float of 21.3% with 12.64 days to cover. Shares are down 50.8% year-to-date as of the close of trading on Friday.

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 Halozyme Therapeutics as a sell. The company's weaknesses can be seen in multiple areas, such as its unimpressive growth in net income, generally high debt management risk, generally disappointing historical performance in the stock itself and feeble growth in its earnings per share.

Highlights from the ratings report include:
  • 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 significantly decreased by 31.2% when compared to the same quarter one year ago, falling from -$15.11 million to -$19.82 million.
  • Despite any intermediate fluctuations, we have only bad news to report on this stock's performance over the last year: it has tumbled by 56.25%, worse than the S&P 500's performance. Consistent with the plunge in the stock price, the company's earnings per share are down 33.33% compared to the year-earlier quarter. Naturally, the overall market trend is bound to be a significant factor. However, in one sense, the stock's sharp decline last year is a positive for future investors, making it cheaper (in proportion to its earnings over the past year) than most other stocks in its industry. But due to other concerns, we feel the stock is still not a good buy right now.
  • The debt-to-equity ratio is very high at 6.65 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 4.11, which shows the ability to cover short-term cash needs.
  • HALOZYME THERAPEUTICS INC's earnings per share declined by 33.3% in the most recent quarter compared to the same quarter a year ago. This company has reported somewhat volatile earnings recently. We feel it is likely to report a decline in earnings in the coming year. During the past fiscal year, HALOZYME THERAPEUTICS INC continued to lose money by earning -$0.26 versus -$0.55 in the prior year. For the next year, the market is expecting a contraction of 298.1% in earnings (-$1.04 versus -$0.26).
  • The company's current return on equity greatly increased when compared to its ROE from the same quarter one year prior. This is a signal of significant strength within the corporation. Compared to other companies in the Biotechnology industry and the overall market, HALOZYME THERAPEUTICS INC's return on equity significantly trails that of both the industry average and the S&P 500.

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

Global Stocks Slide as Trump's New Trade War Salvo Ignites Fresh Concern

Global Stocks Slide as Trump's New Trade War Salvo Ignites Fresh Concern

Trump Tariff Threat, Deutsche Bank, Elon Musk and Apple - 5 Things You Must Know

Trump Tariff Threat, Deutsche Bank, Elon Musk and Apple - 5 Things You Must Know

Automakers Slump as Trump Launches National Security Probe into US Car Imports

Automakers Slump as Trump Launches National Security Probe into US Car Imports

Deutsche Bank Confirms Massive Job Cuts as New CEO Christian Sewing Plants Flag

Deutsche Bank Confirms Massive Job Cuts as New CEO Christian Sewing Plants Flag

Carnival CEO Arnold Donald: China Will Become the Largest Cruise Market

Carnival CEO Arnold Donald: China Will Become the Largest Cruise Market