Trade-Ideas LLC identified ACADIA Pharmaceuticals ( ACAD) as a post-market laggard 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 $56.6 million.
  • ACAD is down 3.8% 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 5 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 2.6 million shares per day over the past 30 days. ACADIA has a market cap of $4.2 billion and is part of the health care sector and drugs industry. The stock has a beta of 3.83 and a short float of 24.2% with 11.15 days to cover. Shares are up 3.9% year-to-date as of the close of trading on Friday.

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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 significantly underperformed when compared to that of the S&P 500 and the Biotechnology industry. 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 the cash generation rate to the industry average, the firm's growth is significantly lower.
  • Looking at the price performance of ACAD's shares over the past 12 months, there is not much good news to report: the stock is down 25.48%, and it has underformed the S&P 500 Index. In addition, the company's earnings per share are lower today than 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 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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