Since January 1, 2014, there have been 332 IPOs on either the NYSE or the Nasdaq. Earlier today we ran a screen on Bloomberg that ranked these IPOs by their returns since their IPO. Specifically, we measured the returns from the opening price on the first day of trading to today's close. Here are the top 10 stocks per this screen:
1. Atara Biotherapeutics (ATRA), up 281% since Oct 15, 2014 IPO. This company develops treatments for cancer, kidney disease and other illnesses.
2. Eagle Pharmaceuticals (EGRX) up 276% since Feb 12, 2014 IPO. The company develops a variety of specialty drugs via injectables.
3. Alder Biopharmaceuticals (ALDR) up 234% since May 8, 2014 IPO. Develops antibody therapeutics for cancer, pain, cardiovascular and autoimmune and inflammatory diseases.
4. Adeptus Health (ADPT) up 157% since June 25, 2014 IPO. Manages an independent network of free-standing emergency rooms in Texas and Colorado.
5. Inogen (INGN) up 130% since Feb 14, 2014. Sells oxygen and supplies for pulmonary disease patients.
6. Nevro Corp (NVRO) up 128% since Nov 5, 2014. Develops spinal cord therapy products to relieve pain.
7. Diplomat Pharmacueticals (DPLO) up 125% since Oct 9, 2014 IPO. Develops pharmaceuticals for complex diseases.
8. Kite Pharmaceuticals (KITE) up 119% since June 20, 2014 IPO. Develops cancer and immunotherapy products.
9. Paycom Software (PAYC) up 114% since April 14, 2014 IPO. Markets cloud-based software for the employment life-cycle.
10. 2U Inc (TWOU) up 113% since March 28, 2014 IPO. Provides a variety of online education courses.
It is interesting to note that the top 8 companies are all in the Healthcare sector. This reflects the fact that the overall IPO market of the last two years in the US has been dominated by healthcare companies, especially in the biotechnology industry. Additionally, in the first quarter of 2015, the healthcare sector within the S&P 500 Index reported the largest earnings increase year-over-year, at 22%, per FactSet. There is no doubt that we are in the midst of a healthcare revolution.
Tuesday, May 12, 2015
Monday, May 11, 2015
IPO Market Return- A Look Back
The single best source to begin a screen of US-listed IPOs is at Renaissance Capital. This website consolidates all US IPO data into one site, and gives you several good options of ranking IPOs by size, by date or by after-market returns.
Let's review the 2014 US IPO Market Review report, published on January 2, 2015. From this report, we can see that the IPO market in the US posted its highest number of offerings, at 275, since the year 2000, when 406 offerings began trading. Of these 275 IPOs last year, 102 were in the healthcare sector, capitalizing on the booming biotechnology revolutions underway, thanks to the dramatic fall in genomics and computing costs.
From page 5 of this report, you'll see that the average IPO at year-end finished up 121% from the offer price, mostly fgrom the first day. However, the average after-market return would have been 0% if not for biotech IPOs, which included none deals that gained 100% or more the first day. Page 6 of the report displays a chart of IPO returns by sector.
Page 7 of this report is where we will begin our screens. The table at the top of that page lists the Best-Performing US IPOs. As you can see, returns ranged from top-performing Radius Health (RDUS) at 386.4%, while the tenth best performer was TrueCar at 154.4%. Most of these moves occurred after the first-day pop. In Radius's case, the first day pop was just 0.1%. Investors paying attention had plenty of time to watch this stock perform and decided on an entry point.
For a look back at the first quarter of 2015, Renaissance has published a similar quarterly report. Page 6 of this report lists the top 10 returning IPOs, led by Spark Therapeutics (ONCE) at 237%!. Again, the biotech space is where a lot of IPO action continues.
In our next post, we'll delve further into how we create our screens of the IPO calendar.
Let's review the 2014 US IPO Market Review report, published on January 2, 2015. From this report, we can see that the IPO market in the US posted its highest number of offerings, at 275, since the year 2000, when 406 offerings began trading. Of these 275 IPOs last year, 102 were in the healthcare sector, capitalizing on the booming biotechnology revolutions underway, thanks to the dramatic fall in genomics and computing costs.
From page 5 of this report, you'll see that the average IPO at year-end finished up 121% from the offer price, mostly fgrom the first day. However, the average after-market return would have been 0% if not for biotech IPOs, which included none deals that gained 100% or more the first day. Page 6 of the report displays a chart of IPO returns by sector.
Page 7 of this report is where we will begin our screens. The table at the top of that page lists the Best-Performing US IPOs. As you can see, returns ranged from top-performing Radius Health (RDUS) at 386.4%, while the tenth best performer was TrueCar at 154.4%. Most of these moves occurred after the first-day pop. In Radius's case, the first day pop was just 0.1%. Investors paying attention had plenty of time to watch this stock perform and decided on an entry point.
For a look back at the first quarter of 2015, Renaissance has published a similar quarterly report. Page 6 of this report lists the top 10 returning IPOs, led by Spark Therapeutics (ONCE) at 237%!. Again, the biotech space is where a lot of IPO action continues.
In our next post, we'll delve further into how we create our screens of the IPO calendar.
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