BioTech Stocks to Watch: Arrowhead Research (NASDAQ:ARWR) Is on Road to Recovery

Arrowhead Research (NASDAQ:ARWR) has been identified as the “dead cat bounce” nominee by Trade-Ideas LLC. This means than Arrowhead Research (NASDAQ:ARWR) has made a temporary recovery following its big fall.

The dollar volume on average of Arrowhead Research (NASDAQ:ARWR) (which is measured by multiplying the share price and daily average of share volume) values $32.1 million whereas ARWR traded today with a volume of 72,308 shares. ARWR advanced 7.4% today while it had declined 8.1% on the previous trading day.

The biopharmaceutical company, Arrowhead Research (NASDAQ:ARWR), specializes in the making of therapeutics that target the treatment of RNAi in United States. According to 5 analysts the Arrowhead Research has been rated “buy”; whereas a “hold” rating was given by one analyst and no “sell” rating from any of the analysts.

All throughout the past 30 day period the Arrowhead Research (NASDAQ:ARWR) has traded with a daily average share volume of 2.1 million. The total market cap of Arrowhead Research (NASDAQ:ARWR) has been recorded at $683.7 million and is a component of the drugs and healthcare industry. Beta value of 2.83 and 10% short float value of the stock has been achieved with a covering period of 1.41 days. Shares have gained 14.3% throughout this year as of the recent trade day that closed on Monday.

Arrowhead Research (NASDAQ:ARWR) has a sell rating from TheStreet Quant Ratings . The minimal operating cash flow and progressively falling net income can be counted as the multiple weaknesses of the company among others in various areas.

Ratings Report highlights that the company in contrast to S&P 500 and Biotechnology industry has underachieved if comparison be made between the changes in net cash to the previous year’s same quarter. A significant decline of 106.3% from -$6.76 million was seen in net income to reach a value of -$13.94 million.

A drop of -$7.70 million otherwise 72.31% in net OCF has been recorded in comparison to previous year’s same quarter. The firm has also known to grow at a much lower rate than the industry average.

The present equity return of company has advanced greatly in contrast to ROE of last year’s same quarter. This signifies the corporation’s strength. Return on equity of Arrowhead Research (NASDAQ:ARWR) notably follows that of S&P 500 and industry average if comparison be made to other Biotechnological companies operating in the industry.

The company in addition to its inactive growth in revenue has not performed to expectation against industry average value of 26.1%. Constancy in revenues has been observed since prior year’s same quarter. Earnings per share have not been noted to rise due to stagnant growth in revenue.

The debt-to-equity ratio of Arrowhead Research (NASDAQ:ARWR) stands at a very low value of 0.01 which falls below the current industry average. This suggests that the company has been managing its debt levels successfully. In addition the company continues to preserve a quick ratio value of 15.32. This exhibits the company’s potential to cover their need of short-term cash.