Investing in Windtree Therapeutics stock presents a mixed bag of opportunities and challenges. With a market capitalization of
5.8M and a potential upside of
16.39, investors may find the stock appealing, especially given its current quote of
12.25. However, the company is grappling with significant losses, including an EBITDA of
17.5M and a projected EPS of
2.13 for the next year. As the biotechnology sector continues to evolve, weighing these factors against the stock's volatility and market conditions will be crucial for any investment decision.
Major Takeaways
When comparing Windtree Therapeutics and Palisade, it's important to look at how market fluctuations impact their stock prices. This analysis can help you determine if combining these companies in your portfolio could reduce overall market risk. You might also consider a pair trading strategy, where you take a long position in Palisade while shorting Windtree Therapeutics. For more details, check out our
pair correlation module.
Now, let’s examine Windtree’s asset performance. The company has a negative asset utilization rate of -0.34%, meaning it loses about $0.0034 for every dollar of assets. This indicates that Windtree is not using its resources effectively, which raises concerns about its operational efficiency.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two entities, such as Windtree or Palisade is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.
How important is Windtree Therapeutics's Liquidity
Windtree Therapeutics
financial leverage refers to using borrowed capital as a funding source to finance Windtree Therapeutics ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Windtree 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 Windtree 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 Windtree 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 Windtree Therapeutics's total debt and its cash.
Correlation Between Windtree and Palisade Bio
In general, Stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Windtree Therapeutics together with similar or unrelated positions with a negative correlation. For example, you can also add Palisade Bio to your portfolio. If Palisade Bio is not perfectly correlated to Windtree Therapeutics it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Windtree Therapeutics, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Are you currently holding both Windtree Therapeutics and Palisade Bio in your portfolio? Please note if you are using this as a pair-trade strategy between Windtree Therapeutics and Palisade Bio, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses. Please check
pair correlation details between WINT and PALI for more information.
Breaking it down a bit more
Total Debt Breakdown
Let me now go over Windtree Therapeutics total debt. Based on the latest financial disclosure, Windtree Therapeutics has a Total Debt of 16.83
M. This is 99.39% lower than that of the Biotechnology sector and 94.82% lower than that of the
Health Care industry. The total debt for all United States stocks is 99.68% higher than that of the company.
As for Palisade Bio we see total debt of 369
K, which is 99.89% lower than that of the Health Care
| WINT | 16.83 Million | 4.92 |
| Sector | 324.78 Million | 94.97 |
| PALI | 369,000 | 0.11 |
In the world of investing, the old adage "don't put all your eggs in one basket" rings especially true for stocks like Windtree Therapeutics. Currently, the stock is trading around a typical price of $11.41, but with a market capitalization of just $5.8 million and significant losses, including an EBITDA of $17.5 million, caution is warranted. The company’s current ratio of 2.47X suggests it can cover its short-term obligations, yet its high probability of bankruptcy at 95.44% raises red flags for potential investors. With an EPS estimate of -2.38 for the current year and a price-to-sales ratio soaring at 660.53X, the fundamentals seem shaky at best. As Wall Street sets a target price of $7, investors might want to weigh their options carefully before deciding whether to cash in or hold on..
Our take on today Windtree Therapeutics gain
Windtree Therapeutics has recently experienced a significant surge, with its kurtosis rising above 37.57. This indicates a marked increase in the stock's volatility, suggesting that investors are reacting strongly to recent news and developments. This heightened activity may reflect growing interest or optimism about the company's future.
As the market processes this information, traders could find both opportunities and risks in Windtree's dynamic performance. The stock's above-average volatility can help investors time their trades more effectively. However, in bear markets, increased volatility can lead to sharp price drops, causing stress for investors. Many may feel compelled to adjust their portfolios as they navigate these fluctuations.
Our Bottom Line On Windtree Therapeutics
Whereas other companies within the biotechnology industry are still a little expensive, even after the recent corrections, Windtree Therapeutics may offer a potential longer-term growth to private investors. With a somewhat neutral outlook on your 90 days horizon, it may be better to hold off any trading activity and neither trade new shares of Windtree nor quit your existing holdings in the Stock. It seems the expected volatility has not yet been fully factored into the current price. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Windtree Therapeutics.
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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 Windtree Therapeutics. Please refer to our
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