With the end of March, we close the first quarter of the year on a slightly positive note. The year started off a bit uneasy due to the unfortunate repercussions of the bitter cold and harsh snow storms throughout the winter. But last Friday, the Bureau of Labor statistics released the March jobs report, revealing that the economy is still showing steady improvement, adding 192,000 jobs last month and revealing a small increase in labor force participation.
While stocks are starting to settle from the brutal Winter months, some analysts were not able to escape the downward trend, while other analysts managed to come out on top this month. In March’s TipRanks Hall of Fame/Hall of Shame, we take a look at the analysts who were able to know when a stock was too risky to hang on to, and which analysts were not able to identify the big risk. To review all analyst performances, in addition to the ones below, be sure to download TipRanks.
Hall of Fame
Stocks have had a hard time climbing back up the charts, but there were still analysts who were able to strategically recommend stocks in order to come out on top. In fact, this month, we welcome Cantor Fitzgerald analyst Mara Goldstein into the TipRanks Hall of Fame/Hall of Shame for her keen eye and spot-on advice.
Galena Biopharma Inc (NASDAQ:GALE), the Oregon based biopharmaceutical company that focuses on cancer treatments, is just one of many companies that has been experiencing a rough few months. The company just recently reported bigger-than-expected losses for the fourth quarter and, unfortunately, the company found themselves in even more distress when the U.S. Securities and Exchange Commission decided to start investigating the company’s dealings with an external investor-relations firm. Once this news broke on March 18th, the stock fell as much as 21%. Cantor Fitzgerald analyst Mara Goldstein recommended SELL Galena Biopharma saying, “valuation could be clouded due to the lawsuits and the potential for additional investigations.” Mara’s recommendation to drop the stock earned her +13.7% over S&P-500! This recommendation has added to Mara’s +1.0% average return over S&P-500 and her 64% success rate of recommended stocks.
Congratulations Mara! Knowing when to let go of a stock has earned you an elite place in the TipRanks Hall of Fame.
Hall of Shame
Unfortunately, at the same time Mara was recommending SELL Galena Biopharma Inc (NASDAQ:GALE), other analysts were not as keen to get rid of the stock. Several analysts were willing to recommend BUY Galena Biopharma and have now earned entrance into this month’s Hall of Shame for their poor recommendation.
Analyst Joseph Pantiginis of Roth Capital, cut his price target from $12 down to $7, but still recommended BUY Galena Biopharma Inc (NASDAQ:GALE) even after learning of the SEC investigation. Joseph was counting on the strong sales of Abstral, a treatment for cancer pain, to carry his BUY rating, arguing, “Abstral sales have been strong since the 4Q13 U.S. launch, with revenues coming in at $2.5 million f or 2013, the upper end of the company’s $1.5-3 million guidance…We see the strong sales of Abstral as a positive for the company.” Joseph has a -5.0% average return over S&P 500 (INDEXSP:.INX) and a 40% success rate of recommendations.
Noble Financial analyst, Rahul Jasuja, also recommended BUY Galena Biopharma Inc (NASDAQ:GALE), noting that, “Galena’s pipeline remains robust amid recent turbulence in the shares.” Rahul has a -10.0% average return over S&P-500 and a 25% success rate of recommendations.
And MLV & Co. analyst Vernon Bernardino recommended BUY Galena Biopharma Inc (NASDAQ:GALE) arguing, “quarterly results were a non-event for Galena, but recent insider sales were ill-timed in light of promotional activities not previously disclosed. However, we continue to think concerns are overdone, as they ignore that sales had also occurred after announcements showing Galena Biopharma making fundamental progress with its oncology-focused portfolio.” Vernon has a -4.3% average return over S&P 500 (INDEXSP:.INX) and a 50% success rate of recommended stocks.
Even analyst Jason Kolbert of Maxim Group recommended BUY Galena Biopharma Inc (NASDAQ:GALE), relying on the company’s “solid assets,” to support his valuation. Jason spent some time speaking with Galena Biopharma management about the SEC investigation and assuaged his fears by pointing to the worst case scenario, where “the SEC finds some liability with management.” Jason said, “we believe this should not materially affect the value of underlying assets based on our current assumptions.” Jason has a +2.3% average return over S&P-500 and a 40% success rate of recommended stocks.
However, all of these analysts have lost anywhere from -13. 7% over S&P-500 to -22.0% due to their BUY ratings! Their positive attitudes and reliance on the sales of Galena Biopharma Inc (NASDAQ:GALE)’s current products, were not enough to earn them positive returns.
To continue following analyst recommendations as many stocks (hopefully) start to bounce back in the spring month of April, be sure to download TipRanks, and start making informed financial decisions with advice you can trust.