Cidara Therapeutics, Inc. (CDTX) Stock: A Strong Pick In The Biotech Sector?

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Cidara Therapeutics, Inc. (CDTX) is working its way for to the bottom in the market today. The stock, one that is focused on the biotechnology industry, is currently trading at $1.67 after falling -7.22% so far today. As it relates to biotechnology companies, there are a number of aspects that have the potential to generate price movement in the market. News tends to be one of the biggest reasons for the movement. Here are the most recent headlines associated with CDTX:

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May-22-19 09:00AM What Makes Cidara Therapeutics (CDTX) a New Buy Stock
May-09-19 07:54PM Cidara Therapeutics: 1Q Earnings Snapshot
04:13PM Cidara Provides Corporate Update and Reports First Quarter 2019 Financial Results
Apr-16-19 08:00AM Cidara Therapeutics Highlights New Data from Multiple Rezafungin Studies Presented at ECCMID 2019
Apr-15-19 08:00AM Cidara Therapeutics Selects First Clinical Development Candidate from its Cloudbreak Influenza (Antiviral) Program

However, any time investors are making an investing decision, prospective investors should look at far more than just news, this is especially the case in the speculative biotechnology sector. Here’s what’s happening with Cidara Therapeutics, Inc..

Recent Movement From CDTX

While a move down on a single session, like what we’re seeing from Cidara Therapeutics, Inc. may make some investors fearful, that by itself shouldn’t be the reason for a decision to, or not to, invest in a stock. It is always smart to look into trends experienced by the stock beyond a single trading session. As it relates to CDTX, here are the returns on investment that investors have experienced:

  • Past Seven Days – Over the last five trading sessions, CDTX has generated a change in price that amounts to -8.63%.
  • Monthly – The performance from Cidara Therapeutics, Inc. throughout the past 30 days has been -21.74%.
  • Past Three Months – Over the last 3 months, the stock has produced a ROI that comes to -35.94%
  • Past Six Months – Throughout the previous 6 months, we have seen a performance that works out to -49.44% from the company.
  • Year To Date – Since the open of this year CDTX has resulted in a return on investment of -23.40%.
  • Annually – Finally, in the last year, we’ve seen a change that works out to -66.82% out of CDTX. Throughout this period of time, the stock has traded at a high of -73.70% and a low price of -5.65%.

Ratios To Watch

Digging into various ratios associated with a stock can give prospective traders an understanding of how dangerous and/or rewarding a stock pick might be. Here are some of the key ratios to consider when digging into CDTX.

Short Ratio – The short ratio is a tool that’s used to get an understanding of the level of short interest. As the ratio climbs, it means that more investors are expecting that the price of the stock is going to fall. Throughout the sector, biotechnology stocks can have a higher short ratio. However, we also see quite a few short squeezes in the space. Nonetheless, when it comes to Cidara Therapeutics, Inc., it’s short ratio amounts to 6.59.

Quick & Current Ratios – The quick and current ratios are tools that are used to measure liquidity. Basically, they measure the company’s abilities to pay for its debts when they mature using quick assets or current assets. Because many biotech many companies rely heavily on the continuation of investor support, the quick and current ratios can be damning. Nonetheless, several good picks in the biotech space come with great current and quick ratios. As it relates to CDTX, the quick and current ratios come to 3.20 and 3.20 respectively.  

Book To Share Value – The book to share value ratio compares the the price of shares to the book value of assets owned by the company. In this case, the book to share value ratio is 1.58.

Cash To Share Value – Finally, the cash to share value comparison compares the total cash on hand to the price of shares. Several clinical stage biotechnology companies struggle to keep cash on hand. So, if you’re interested in a stock in the biotechnology industry, this is a very important ratio to consider. When it comes to CDTX, the cash to share value comes to 0.

What Analysts Say About Cidara Therapeutics, Inc.

While it’s rarely a good idea to avoid doing your due diligence and blindly following the thoughts of analysts, it is a smart idea to consider their opinions when validating your own opinions when it comes to making an investment decision in the biotech sector. Below you’ll find the most recent moves that we’ve seen from analysts with regard to CDTX.

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Jul-26-18 Initiated Citigroup Buy $8
Apr-21-17 Initiated Raymond James Strong Buy
Apr-17-17 Reiterated H.C. Wainwright Buy $18 → $14
Apr-12-17 Initiated Ladenburg Thalmann Buy $11.25
Apr-11-17 Resumed Wedbush Outperform $13

Smart Money Follows Big Money

One thing that I’ve come to understand in my brief period on Earth has been that smart investors tend to follow big money. In other words, investors that are trying to play it relatively safe will keep their eyes on moves made by institutional investors as well as insiders. With that said, is big money flowing as it relates to CDTX? Here’s the scoop:

  • Institutions – Currently, institutions own 69.70% of Cidara Therapeutics, Inc.. On the other hand, it’s worth considering that institutional ownership has seen a move of -8.27% throughout the last 3 months.
  • Investors On The Inside – As far as insiders go, insiders of the company currently hold 1.50% of Cidara Therapeutics, Inc.. Insider ownership of the company has seen a change of -1.14% in the past quarter.

How Many Shares Of CDTX Are Available?

Traders tend to have a heavy interest in the counts of shares both available and outstanding. As it relates to Cidara Therapeutics, Inc., there are currently 26.35M with a float of 25.03M. This means that of the total of 26.35M shares of CDTX currently in existence today, 25.03M are able to be traded on the market.

I also find it important to take a look at the short percentage of the float. After all, when a large portion of the float available for trading is shorted, the overall feeling in the market is that the equity is going to lose value. As far as it relates to CDTX, the percentage of the float that is currently being sold short is 3.08%. Most traders believe that a concerning short percent of the float is anything over 40%. Nonetheless, I’ve calculated that a short percent of the float over 26% is probably going to be a risky play.

What We’ve Seen In Financial Results

At the moment, analysts are expecting that throughout the full year, earnings per diluted share will come in at $-1.71. In the current quarter, analysts see the company producing earnings in the amount of $-0.54. Over the last 5 years, CDTX has generated revenue in the amount of $0 with earnings coming in at 0. On a quarter over quarter basis, earnings have seen movement of 25.50% and revenue has seen movement of 0.

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