Our latest technical analysis of CohBar Inc (USA Stocks:CWBR)
 | By Aina Ster | Macroaxis Story |
In the world of investing, the healthcare sector, particularly biotechnology, is often seen as a high-risk, high-reward play. This is especially true for CohBar Inc. (NASDAQ:CWBR), a biotechnology company that has been on the radar of many investors. As of November 21, 2023, the company's stock has been trading with a 52-week high of $6.9 and a low of $0.74, reflecting the inherent volatility in the sector. CohBar's financials reveal a company in the growth phase, with a net income loss of $12.2 million and an operating income loss of $12.4 million. Despite these losses, the company has managed to generate an interest income of $223.3K, indicating some level of financial management. The company's stock has a beta of 1.891, suggesting it is more volatile than the market. This is further reflected in the company's 50-day moving average (MA) of $2.17 and a 200-day MA of $2.34, indicating a bearish trend. However, the Wall Street target price for the stock is a whopping $18, suggesting significant upside potential. The company's valuation metrics also paint an interesting picture. With a valuation market value of 0.9 and a valuation real value of 0.86, the stock appears to be undervalued. This is further supported by the company's price to book ratio of 0.2652, which is significantly lower than the industry average. In conclusion, while CohBar Inc. is currently operating at a loss, the company's potential upside and the Wall Street target price of $18 suggest that this stock could be a high-reward play for risk-tolerant investors. However, investors should also be aware of the company's high volatility, as indicated by its beta of 1.891, and the bearish trend suggested by its moving averages. While many baby boomers may be indifferent towards the biotechnology sector, it is still worthwhile to evaluate CohBar Inc in the context of current market trends. We have identified several intriguing factors that could potentially lead to a full recovery. Much of CohBar's recent price movement has been in stark contrast to the overall market trends observed in the past few months. The company's weak fundamental drivers could also suggest potential long-term losses for CohBar's retail investors. CohBar Inc is set to announce its earnings today.
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Reviewed by Rifka Kats
CohBar Inc. holds an average rating of 'Hold' from one analyst. Is this consensus based on technical analyses? As we know, typical technical analysis employs the use of price momentum, patterns, and trends by examining historical prices. The goal is to identify signals based on the market sentiment of CohBar investors, which reflects their perception of the future value of CohBar. Let's delve into a few aspects of CohBar's technical analysis. Approximately 15.0% of the company's shares are held by company insiders. The company's price-to-book (P/B) ratio stands at 0.27. Some equities with similar Price to Book (P/B) ratios have been known to outperform the market in the long run. CohBar Inc. reported a loss per share of 4.37. The company has not issued any dividends in recent years. On September 23, 2022, the firm executed a 1:30 stock split.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as CohBar. Your research has to be compared to or analyzed against CohBar's peers to derive any actionable benefits. When done correctly, CohBar's competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in CohBar Inc.
Key Points
CohBar Inc. (NASDAQ:CWBR) presents an interesting case from a technical analysis perspective. Despite a 60.37% maximum drawdown and a negative risk-adjusted performance of -0.12, the stock's potential upside of 6.74 suggests room for growth. The company's 200-day moving average stands at 2.34, significantly higher than its current last price of $0.9, indicating a potential undervaluation. However, investors should be cautious as the company reported a loss in net income from continuing operations of $12.2M. The short ratio of 1.99 also suggests a moderate level of short interest. In conclusion, while CohBar Inc. shows potential for upside, it also carries significant risk, and investors should carefully consider these factors before making a decision.
Using predictive technical analysis, we can analyze different prices and returns patterns and diagnose historical swings to determine the real value of CohBar Inc. In general, sophisticated investors focus on analyzing CohBar stock price patterns and their correlations with different microeconomic environment and drivers. They apply predictive analytics to build CohBar's daily price indicators and compare them against related drivers such as momentum indicators and various other types of predictive indicators. Using this methodology combined with a more conventional technical analysis and fundamental analysis, we attempt to find the most accurate representation of CohBar's intrinsic value. In addition to deriving basic predictive indicators for CohBar, many experienced traders also check how macroeconomic factors affect CohBar price patterns. Please read more on our technical analysis page or use our predictive modules below to complement your research.
How important is CohBar's Liquidity
CohBar financial leverage refers to using borrowed capital as a funding source to finance CohBar Inc ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. CohBar financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to CohBar's owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of CohBar's financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the breakdown between CohBar's total debt and its cash.
Breaking down CohBar Further
CohBar Inc has a beta of -1.3143. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, CohBar will likely underperform. The beta indicator helps investors understand whether CohBar moves in the same direction as the rest of the market, and how volatile (i.e., risky) it is compared to the market (i.e., selected benchmark). In other words, if CohBar deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns. Net Loss for the year was (12.18 M) with profit before overhead, payroll, taxes, and interest of 0. "Buy low, sell high" is a well-known investment adage that seems to resonate with the current technical analysis of CohBar Inc.(NASDAQ:CWBR). The biotechnology company's stock is currently trading near its 52-week low of $0.74, which could present a potential upside of 6.74. Despite a high probability of bankruptcy at 95.11%, the company's strong current ratio of 28.45X, backed by $20.1M in cash and equivalents, suggests it has sufficient resources to meet its short-term obligations. However, investors should be cautious as the company reported a net income loss of $12.2M and a negative return on equity of 0.84. The company's shares are primarily held by insiders, accounting for 15.09% of the total outstanding shares of 2.91M. Despite the risks, Wall Street's target price stands at $18, indicating a potential significant return if the company can turn its fortunes around. .
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