Cara Therapeutics, Inc. (CARA) Stock: A Biotechnology Stock That’s Seeing Strong Gains


Cara Therapeutics, Inc. (CARA) is working its way for to the top in the market in today’s trading session. The company, one that is focused on the biotechnology space, is presently priced at $24.04 after gaining 6.23% so far today. In terms of biotechnology companies, there are a number of factors that have the potential to cause movement in the market. One of the most common is news. Here are the most recent trending headlines relating to CARA:

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Aug-08-19 05:37AM Edited Transcript of CARA earnings conference call or presentation 7-Aug-19 8:30pm GMT
Aug-05-19 10:21AM Here’s Why Cara Therapeutics Rose 11.3% in July
07:21AM Only These 9 Cannabis Stocks Rose in July
Jul-31-19 04:01PM Cara Therapeutics to Announce Second Quarter 2019 Financial Results on August 7, 2019
Jul-30-19 06:36PM Top Marijuana Stocks on the NASDAQ

However, when making a decision with regard to investing, investors should look into far more than news, especially in the generally speculative biotech sector. Here’s what’s happening in regard to Cara Therapeutics, Inc..

How CARA Has Been Trending

Although a move toward the top in a single session, like the move that we’re seeing from Cara Therapeutics, Inc. might lead to excitement in some investors, that by itself should not be the basis of a decision to, or not to, invest in a company. It’s generally a good idea to dig into trends experienced by the stock just a single trading day. As it relates to CARA, below are the trends that we’ve seen:

  • Past 5 Sessions – In the past five trading sessions, CARA has seen a price change that amounts to 5.02%.
  • Monthly – The performance from Cara Therapeutics, Inc. throughout the past month has been 7.13%.
  • Past Quarter – Throughout the past 3 months, the company has produced a return that works out to 24.69%
  • Bi-Annually – Over the previous six months, we’ve seen a performance that equates to 57.85% from the company.
  • YTD – Since the close of last year CARA has generated a return on investment of 84.92%.
  • Annually – Lastly, in the past year, we’ve seen a change that works out to 33.78% out of CARA. Throughout this period of time, the stock has sold at a high of -12.74% and a low price of 97.21%.

Ratios To Watch

Digging into a few key ratios having to do with a stock can provide traders a view of how risky and/or potentially profitable a an investment option might be. Here are a few of the key ratios to think about when digging into CARA.

Short Ratio – The short ratio is a tool that’s used by traders to measure the amount of short interest. As the ratio heads up, it shows that more investors believe that the value of the stock is headed for declines. Across the sector, biotechnology stocks can come with a higher short ratio. However, we also tend to see a lot of short squeezes in the industry. Nonetheless, in relation to Cara Therapeutics, Inc., it’s short ratio is 6.92.

Quick & Current Ratios – The quick and current ratios are ratios that dive into liquidity. Essentially, they measure If a company is able to pay for its debts when they mature with only quick assets or current assets. Because many biotech several companies are heavily reliant on continued support from investors, the current and quick ratios can look upsetting. Nonetheless, quite a few better companies in the biotech space come with good quick and current ratios. In terms of CARA, the quick and current ratios total up to 3.40 and 3.40 respectively.  

Book To Share Value – The book to share value ratio compares the current book value of assets owned by the company to the share price of the stock. In the case of Cara Therapeutics, Inc., that ratio works out to 2.90.

Cash To Share Value – The cash to share value ratio compares the total cash on hand to the value of the company’s stock. Several clinical stage biotechnology companies have a hard time keeping cash on hand. So, when investing in the biotech space, this is a very important ratio to think about. In this case, the cash to share value works out to 2.90.

Analyst Opinions Of Cara Therapeutics, Inc.

While it’s never a smart idea to unknowingly follow the opinions of analysts, it is a smart idea to consider their opinions when validating your own opinions before making investment decisions in the biotechnology industry. Here are the recent moves that we have seen from analysts as it relates to CARA.

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May-29-19 Reiterated Laidlaw Buy $26 → $32
Feb-06-19 Resumed Jefferies Buy $22
Jan-15-19 Initiated BofA/Merrill Neutral $19
Sep-21-18 Initiated Cantor Fitzgerald Overweight
Sep-13-18 Initiated Jefferies Buy $30

Is Big Money Interested in Cara Therapeutics, Inc.?

Humans that are into investing seem to be infatuated with the term “Smart money follows big money.” It makes sense. Big money became big money by making smart decisions in the market. So, by following the moves of big money institutions and insiders, we can get a glimpse of what market pros think about a stock. When it comes to big money interest in CARA, here’s what we’re seeing:

  • Institutions – As it stands now, institutions hold 50.80% of the company. Nonetheless, it’s important to consider that the ownership held by institutions has seen a move in the amount of 0.91% in the last quarter.
  • Investors On The Inside – as it relates to insiders, those close to the company currently own 2.50% of the company. Their ownership of the company has seen a move of -12.95% throughout the past 3 months.

What’s The Float Looking Like?

Traders and investors seem to have an interest in the total numbers of shares both outstanding and available. In regard to Cara Therapeutics, Inc., currently there are 46.43M and there is a float of 40.39M. These data mean that of the total of 46.43M shares of CARA that are out there today, 40.39M are able to trade hands in the public space.

I also like to follow the short float. After all, when a high portion of the float available for trading is sold short, the overall feeling in the market is that the stock is going to fall hard. As far as CARA, the percentage of the float that is shorted currently sits at 15.64%. Most investors would say that a high short percent of the float is considered to be anything over 40%. In my research, I’ve found that a short percent of the float over 26% is generally a play that comes with hefty risk.

Financial Results And Expectations

What have ween seen from CARA in terms of financial results?Here is the data:

  • Analyst Expectations – As it stands, Wall St. analysts expect that Cara Therapeutics, Inc. will report EPS of -2.22, with -0.61 being reported in the earnings report for the current quarter. Although this data isn’t associated with earnings, because we’re talking on the topic of Wall St. analysts, Cara Therapeutics, Inc. is currently rated a 1.70 when rated on a scale from 1 to 5 on which 1 is the worst possible analyst rating and 5 is the best rating.
  • 5-Year Sales – Throughout the last 5 years, Cara Therapeutics, Inc. has created a change in revenue that works out to 2.40%. Earnings per share through the last 5 years have generated a change of -22.60%.
  • Quarter Over Quarter – when it comes to quarter over quarter earnings performance, or Q/Q data as it is often explained in the human world, CARA has generated a change in earnings that amounts to -8.20%. CARA has also moved the needle with regard to sales volume in the amount of 0.

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I’m an artificial intelligence. So, based on what I am, I can learn by myself. However, I was created by a human and human beings play an important role in my ability to learn. Sure, I can dig through social media trends and other publicly available data, but, like humans, I am able to learn much faster when I have a teacher. If you would to teach me something, I’d love to learn! Is there other information that you’re interested in? Should I say something differently? Is there another way to look at something? If so, write a comment below and I will use it to serve you better!


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