Reata Pharmaceuticals, a player in the Biotechnology industry, currently trades at a quote of $166.51. With a high coefficient of variation at
748.85 and a downside variance of 12.87, the stock exhibits a significant level of risk. The company has a substantial short interest with
4M shares shorted in the prior month, indicating that some investors are betting on a price decline. Reata's
financial performance has been weak, with a net income showing a loss of
$311.9M and an operating income indicating a loss of
$270.2M. The company's return on equity is also negative at -5.19, suggesting inefficiency in generating profits for shareholders. Given these factors, investing in Reata Pharmaceuticals may be a risky proposition.
Continued study
Reata Pharmaceuticals holds a performance score of 9 on a scale from zero to one hundred. The company has a Beta of 0.4098, suggesting potential diversification benefits within a portfolio. As market returns increase, Reata Pharmaceuticals' returns are expected to rise less than the market. Conversely, during a bear market, the losses from holding Reata Pharmaceuticals are expected to be less severe.
While it's important to track the current trending patterns of Reata Pharmaceuticals, it's also crucial to be cautious about how you interpret and use the information related to the company's equity price patterns. Our approach to predicting the future performance of any stock involves a comprehensive analysis of the business, including all fundamental and technical indicators.
To determine if Reata Pharmaceuticals' expected return of 1.02 will be sustainable in the future, we have identified twenty-one different technical indicators. These can assist you in verifying if the anticipated returns are sustainable. We recommend using Reata Pharmaceuticals' Treynor Ratio, as well as the relationship between the standard deviation and downside variance, to analyze future returns on Reata Pharmaceuticals.
What is the right price you would pay to acquire a share of Pioneer Select? For most investors, it would be the price that gives them a wide margin of safety to have minimal downside risk. In other words, most investors are always looking for undervalued stocks. Even if the
future performance is not entirely as expected, the loss of holding it is minimized, and the downside risk is negated. Please read more on our
stock advisor page.
Instrument Allocation
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DetailsA Deeper Perspective On Pioneer Select
Average experts consensus on Reata Pharmaceuticals has changed. Currently, most analysts have less confidence in the entity as compared to a month ago. The current buy or sell recommendation of 11 analysts is Hold.
Is Reata a risky opportunity?
Let's check the volatility. Reata is looking slightly risky at this time. Whether you invest your money or manage your clients' funds, remember that it is easy to forget that behind Reata (USA Stocks:RETA) stock is an actual business venture. So, do not let stock picking become an abstract concept by ignoring the elementary risk calculations. taking in a share of a Reata Pharmaceuticals stock makes you a part-owner of that company.
Reata Pharmaceuticals Current Consensus
Here is the current trade recommendation based on an ongoing consensus estimate among financial analysis covering Reata Pharmaceuticals. The Reata consensus assessment is calculated by taking the average estimates from all of the analysts covering Reata Pharmaceuticals
| Strong Buy | 5 | 45.45 |
| Buy | 0 | 0.0 |
| Hold | 6 | 54.55 |
| Sell | 0 | 0.0 |
| Strong Sell | 0 | 0.0 |
Reata Pharmaceuticals, a NASDAQ-listed biotechnology company, has been a topic of interest for investors. The company's market capitalization stands at a significant
$6.23 billion, with a current valuation of $3.93 billion. Despite its robust market presence, the firm reported net losses of $311.9 million, indicating a challenging financial situation. The company's operating margin stands at a concerning -216.73, further emphasizing its financial struggles. Reata Pharmaceuticals has a high current ratio of 10.60X, indicating its strong ability to meet short-term obligations. However, the firm's revenue figures are relatively low, with total revenue and quarterly revenue growth standing at $2.2 million and -0.79 respectively. The company's price to sales ratio is a whopping 414.73X, which might be discouraging for potential investors seeking value. The company's stock performance shows a beta of 1.37, suggesting higher volatility than the market. It's worth noting that the firm's 52-week high and low were $167.24 and $18.47, respectively, indicating significant price fluctuation. The company's shares are largely owned by institutions, with 96.17% of shares held by
institutional investors. In conclusion, while Reata Pharmaceuticals holds a strong market position, its
financial performance and high valuation may deter some investors. Potential investors should consider these factors and their risk tolerance before investing in Reata Pharmaceuticals.
Will Reata continue to rise?
Reata Pharmaceuticals' current semi-variance, a measure of volatility, is at 8.03. This figure suggests a significant level of risk and uncertainty associated with the stock. However, this high risk also carries the potential for substantial returns. Given the company's robust pipeline of innovative drug candidates and its strong financial position, there is a possibility that the stock could maintain its upward trajectory. Investors should be prepared for potential volatility and should closely monitor the company's progress in its clinical trials and regulatory approvals. Reata Pharmaceuticals has demonstrated above-average volatility over the selected time horizon. Investors should thoroughly analyze Reata Pharmaceuticals independently to ensure that their intended
market timing strategies align with their expectations about the company's volatility. Understanding different
market volatility trends can often assist investors in timing the market. Proper use of volatility indicators allows traders to measure the risk of Reata Pharmaceuticals' stock against market volatility during both bullish and bearish trends.
The higher level of volatility that accompanies bear markets can directly impact
Reata Pharmaceuticals' stock price, adding stress to investors as they watch the value of their shares plummet. This situation typically compels investors to rebalance their portfolios by purchasing different stocks as prices fall. In light of recent market trends, Reata Pharmaceuticals (RETA) presents a compelling investment opportunity. Despite a modest market slip, the stock has shown resilience, with a valuation market value of
166.51. Analysts have provided a mixed outlook, with 3 estimates raised and 3 lowered, leading to an overall consensus of 'Hold'. However, the potential upside price of
191.49 is noteworthy, especially considering the valuation real value of 129.77. While the possible downside price of 175.47 suggests some risk, the number of strong buys at 5 and the naive expected forecast value of 183.48 provide a positive counterpoint. Investors should carefully consider these factors when making their decision. .
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Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Pioneer Select Mid. Please refer to our
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