Recro Pharma, Inc. (REPH) Stock: A Good Pick In The Biotechnology Industry?

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Recro Pharma, Inc. (REPH) is headed up in the market today. The company, focused on the biotechnology sector, is currently trading at $10.87 after gaining 11.49% so far today. As it relates to biotech stocks, there are a number of aspects that have the potential to cause movement in the market. News tends to be one of the biggest reasons for the movement. Here are the recent stories associated with REPH:

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Aug-08-19 08:35AM Recro Pharma (REPH) Reports Q2 Loss, Tops Revenue Estimates
07:14AM Recro Pharma Reports Second Quarter 2019 Financial Results
Jul-31-19 09:56AM Recro Pharma (NASDAQ:REPH) Is Carrying A Fair Bit Of Debt
Jul-30-19 10:38AM Recro Pharma (REPH) May Report Negative Earnings: Know the Trend Ahead of Q2 Release
Jun-26-19 09:42PM Did Hedge Funds Drop The Ball On Recro Pharma Inc (REPH)?

Nonetheless, any time investors are making a decision to invest, investors should focus on much more than just news, this is especially the case in the generally speculative biotechnology industry. Here’s what’s going on with Recro Pharma, Inc..

What We’ve Seen From REPH

Although a gain in a single session, like what we’re seeing from Recro Pharma, Inc. might lead to excitement in some investors, that by itself shouldn’t be the basis of a decision to, or not to, buy a company’s stock. It’s always a good idea to dig into trends experienced by the stock just a single trading session. In the case of REPH, here are the returns that investors have seen:

  • Past 7 Days – Throughout the past seven days, REPH has seen a change in price in the amount of 13.35%.
  • Past 30 Days – The monthly performance from Recro Pharma, Inc. works out to 8.16%.
  • Quarterly – Throughout the past quarter, the stock has produced a return that works out to 23.52%
  • Past Six Months – Throughout the past six months, we’ve seen a performance that works out to 33.70% from the company.
  • Year To Date – Since the the first trading session of this year REPH has produced a return of 53.10%.
  • Full Year – Finally, over the last full year, we’ve seen a change amounting to 92.05% out of REPH. Over this period, the stock has sold at a high price of 1.68% and a low price of 98.00%.

Key Ratios

Looking at various ratios associated with a company can give prospective traders a view of just how dangerous and/or rewarding a pick may be. Below are a few of the important ratios to look at when looking at REPH.

Short Ratio – The short ratio is a measure of short interest. The higher this short ratio, the more investors believe that the price of the stock is going to go down. In general, biotechnology stocks tend to come with a higher short ratio. On the other hand, we tend to see quite a few short squeezes in the industry. Nonetheless, in relation to Recro Pharma, Inc., it’s short ratio clocks in at 3.26.

Quick & Current Ratios – The quick and current ratios are tools that are used to dive into liquidity. Essentially, they measure the company’s abilities to cover its debts when they mature using current assets or quick assets. In the biotech space, many companies are reliant on continued support from investors, the quick and current ratios can be upsetting. However, quite a few better companies in the biotechnology sector do have great quick and current ratios. As far as REPH, the quick and current ratios add up to 3.20 and 3.60 respectively.  

Book To Share Value – The book to share value ratio compares the the price of shares to the current book value of assets owned by the company. In the case of Recro Pharma, Inc., that ratio is -0.87.

Cash To Share Value – Finally, the cash to share value comparison compares the amount of cash the company has on hand to the value of shares. Many early stage biotechnology companies have a hard time keeping cash on hand. So, if you’re looking into a biotechnology stock, this is a very important ratio to consider. In this case, the cash to share value is 2.57.

How Analysts Feel About Recro Pharma, Inc.

Although it’s rarely a good idea to unknowingly follow the thoughts of analysts, it is a good idea to use their thoughts when validating your own thoughts when it comes to making investment decisions in the biotechnology sector. Below you’ll find the recent moves that we have seen from analysts with regard to REPH.

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Jan-31-19 Resumed Janney Buy $13
Feb-14-18 Initiated Oppenheimer Outperform $19
Dec-19-16 Initiated Piper Jaffray Overweight $12
Nov-14-16 Initiated Aegis Capital Buy $21
Oct-03-16 Resumed Brean Capital Buy

What Are Big Money Players Doing With Recro Pharma, 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 REPH, here’s what we’re seeing:

  • Institutions – As it stands now, institutions own 70.70% of Recro Pharma, Inc.. On the other hand, it’s worth considering that the ownership held by institutions has moved in the amount of 0.10% throughout the last quarter.
  • Insider Holdings – with regard to insiders, those close to the company currently own 1.80% of the company. Their ownership of the company has changed in the amount of -20.51% in the last 3 months.

Looking At Share Counts

Traders and investors seem to have a heavy interest in the amounts of shares both available and outstanding. In regard to Recro Pharma, Inc., there are currently 22.56M with a float of 20.95M. This means that out of the total of 22.56M shares of REPH currently in existence today, 20.95M are able to be traded by the public.

I also like to look at the short percent. After all, if a large percentage of the float available for trading is sold short, the overall opinion in the market is that the stock is going to fall. As far as REPH, the percentage of the float that is sold short is 3.40%. In general, high short percent of the float is anything over 40%. Through my work, I have seen that a short percent of the float over 26% is usually a play that comes with hefty risk.

Financial Performance

What have ween seen from REPH in terms of financial results?Here’s what you’re looking for:

  • Analyst Expectations – Currently, Wall Street analysts expect that REPH will create earnings per diluted share coming to a total of 0.29, with -0.42 being reported in the next financial report. Although this is not earnings driven, since we are talking about Wall Street analysts, REPH is currently rated a 1.80 considering a scale that ranges from 1 to 5 on which 1 is the worst average analyst grade and 5 is the best possible rating.
  • 5-Year Sales – Throughout the past half decade, Recro Pharma, Inc. has created a change in sales that comes to a total of 0. EPS through the period have experienced movement in the amount of -54.30%.
  • Q/Q – when it comes to quarter over quarter earnings performance, or Q/Q data as it is commonly explained in the human world, the company has generated a earnings change by 86.10%. The company has also experienced a change when it comes to revenue in the amount of 28.70%.

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