NEW YORK (TheStreet) -- Shares of Unilife Corp. are down 8.14% to $4.06 today on heavy trading volume after the company announced a public offering of 11 million shares of its common stock at a price of $3.75 per share. The York, PA-based developer and supplier of injectable drug delivery systems said net proceeds from the offering are expected to be $38,792,500 and will be for investments in the company's plant, equipment, systems and personnel, working capital, and "other business opportunities." Additionally, Unilife has granted the underwriters an option for a period of 30 days to purchase up to an additional 1.65 million shares of its common stock. The offering is expected to close on February 4. Exclusive Report: Jim Cramer's Best Stocks for 2015 STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. About 1.34 million shares changed hands by 10:43 a.m. in New York, compared to the average of 842,426 shares. TheStreet Ratings team rates UNILIFE CORP as a Sell with a ratings score of D-. TheStreet Ratings Team has this to say about their recommendation: "We rate UNILIFE CORP (UNIS) a SELL. This is driven by several weaknesses, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. The company's weaknesses can be seen in multiple areas, such as its deteriorating net income, weak operating cash flow and generally disappointing historical performance in the stock itself." Highlights from the analysis by TheStreet Ratings Team goes as follows: 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 Health Care Equipment & Supplies industry. The net income has significantly decreased by 98.0% when compared to the same quarter one year ago, falling from -$11.24 million to -$22.26 million. Net operating cash flow has decreased to -$13.11 million or 39.22% 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 UNILIFE CORP has not done very well: it is down 5.61% 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. UNIS, with its very weak revenue results, has greatly underperformed against the industry average of 4.6%. Since the same quarter one year prior, revenues plummeted by 56.7%. The declining revenue appears to have seeped down to the company's bottom line, decreasing earnings per share. The gross profit margin for UNILIFE CORP is currently very high, coming in at 100.00%. UNIS has managed to maintain the strong profit margin since the same quarter of last year. Despite the mixed results of the gross profit margin, UNIS's net profit margin of -1613.18% significantly underperformed when compared to the industry average. You can view the full analysis from the report here: UNIS Ratings Report STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
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