Ownership Breakdown
| Retail Investors45.63% | Institutions53.28% |
| Retail Investors | 45.63 | |
| Insiders | 1.09 | |
| Institutions | 53.28 |
Will Freeline TherapeuticsHold (USA Stocks:FRLN) turn things around in January?
 | By Rifka Kats | Macroaxis Story |
Freeline Therapeutics Holdings Plc is currently overvalued at $5.58 per share, given its modest future projections. On a performance scale of 0 to 100, Freeline Therapeutics scores a 9. The company has a Beta (market volatility) of -0.4497, suggesting potential diversification benefits within a portfolio. As market returns increase, returns on owning Freeline Therapeutics are expected to decrease at a much lower rate. During bear markets, Freeline Therapeutics is likely to outperform the market.
There are twenty-seven technical indicators available for Freeline Therapeutics Holdings Plc, which can be used to evaluate the company's performance. Investors are encouraged to utilize Freeline Therapeutics' value at risk, as well as the relationship between the Jensen Alpha and Skewness, to make informed decisions on whether Freeline Therapeutics' price patterns will revert.
Main Takeaways
Freeline Therapeutics Holdings Plc (FRLN.US), a key player in the Healthcare sector, specifically within the Biotechnology industry, has recently experienced a dip in its stock price, with a low price of $6.32 and a day median price of $6.36. Despite the company's net income showing a loss of 89M, it's important to note that Freeline Therapeutics operates in a high-potential industry that could lead to significant revenue growth in the future. The company's revenue per share currently stands at 0.143, which, coupled with an accumulation distribution of 424.84, suggests that this dip could present a potential buying opportunity for investors who believe in the long-term potential of the Biotechnology & Life Sciences domain.Macroaxis uses a strict editorial review process to publish stories and blog posts. Our publishers support our company and may receive a small commission when the partner links or references are utilized. Commissions do not affect the opinions or evaluations of our editorial team. The information our editors and media partners deliver is confidential and licensed for your sole use as a Macroaxis user. We reserve all rights to the content of this article, and therefore copying or distributing this story in whole or in part is strictly prohibited.
Reviewed by Michael Smolkin
The healthcare sector is often a rollercoaster ride for investors, and Freeline Therapeutics Holdings Plc (NASDAQ: FRLN) is no exception. The biotechnology company recently experienced a dip in its stock price, with a typical day price of $6.36, slightly below its book value of $6.89. This could potentially present a buying opportunity for savvy investors. Despite a challenging fiscal year ending in December 2023, with a net income loss of $89M and an operating income loss of $98.4M, the company's enterprise value stands at a robust $396.8M. The EPS estimate for the current year is a loss of $0.64, with a more significant loss of $8.41 projected for the next year. However, the analyst's highest estimated target price is $6.5, indicating potential for growth. While the overall consensus among analysts is to hold, this dip could be an opportune moment for those looking to invest in the healthcare sector. As always, investors should carefully consider their risk tolerance and investment goals before making a decision. At present, the Current Ratio of Freeline Therapeutics Holdings Plc remains very stable compared to the previous year. As of December 28, 2023, the Debt to Equity Ratio is projected to increase to 0.71, while Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) are expected to decrease by $93.7 million. Given the enthusiasm many millennials have for the biotechnology sector, it's only appropriate to review Freeline Therapeutics Holdings Plc. We will assess why we maintain our optimism in anticipation of a recovery. Additionally, I will recap some crucial indicators that investors in Freeline Therapeutics Holdings should consider in January.The performance of Freeline Therapeutics Holdings in the marketplace will significantly impact your decision to invest in its stock. Revenue growth, profitability, competitive positioning, management quality, and industry trends can influence Freeline Therapeutics' stock prices. When investing in Freeline Therapeutics, there are several factors to consider and potential outcomes to expect. As a company performs well, its stock price may increase, allowing investors to benefit from price appreciation. However, Freeline Stock can experience significant price fluctuations due to market conditions, economic factors, industry trends, or company-specific news. This is why investing in stocks such as Freeline Therapeutics carries risks, including the potential for capital loss. Stock prices can decline, and investors may incur losses if they sell shares at a lower price than their initial investment.
How important is Freeline Therapeutics's Liquidity
Freeline Therapeutics financial leverage refers to using borrowed capital as a funding source to finance Freeline Therapeutics Holdings ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Freeline Therapeutics 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 Freeline Therapeutics' 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 Freeline Therapeutics' 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 Freeline Therapeutics's total debt and its cash.
An Additional Perspective On Freeline Therapeutics
The market capitalization of Freeline TherapeuticsHold is currently $27.89 Million. Over half of Freeline TherapeuticsHold outstanding shares are owned by other corporate entities. These other corporate entities are typically referred to corporate investors that obtain positions in a given instrument to benefit from reduced trade commissions. Consequently, these institutions are subject to different rules and regulation than regular investors in Freeline TherapeuticsHold. Please watch out for any change in the institutional holdings of Freeline TherapeuticsHold as this could mean something significant has changed or about to change at the company. Be advised that no matter how volatile the entity is, if the real value of the firm is more than the value suggested by the market, you should consider buying it.
Every cloud has a silver lining, and the recent dip in Freeline Therapeutics Holdings Plc (FRLN) stock might just be the opportunity investors have been waiting for. Despite the company's operating income loss of $98.4M and a net income loss of $89M, it's worth noting that the biotechnology firm's book value stands at $6.89, closely mirroring its day typical price of $6.36. This is further supported by a Price to Book ratio of 0.92X, suggesting that the stock is currently undervalued. The Wall Street target price for FRLN is $8.25, indicating a potential upside of 14.74%. However, investors should also consider the company's high probability of bankruptcy at 96.00% and its beta of 0.64, which suggests lower volatility compared to the market. In the volatile world of biotechnology investments, this could be a risk worth taking for the potential rewards. .
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