Otonomy, Inc. (OTIC) Stock: A Good Pick In The Biotechnology Space?

0

Otonomy, Inc. (OTIC) is making a move down in the market in today’s trading session. The company, focused on the biotechnology space, is currently priced at $2.33 after tumbling -5.67% so far today. When it comes to biotechnology companies, there are quite a few aspects that have the potential to lead to movement in the market. One of the most common is news. Here are the recent headlines associated with OTIC:

Stop wasting your time! Start finding winning trades in minutes with Trade Ideas!

Aug-03-19 06:52PM Edited Transcript of OTIC earnings conference call or presentation 1-Aug-19 8:30pm GMT
Aug-01-19 04:20PM Otonomy Reports Second Quarter 2019 Financial Results and Provides Corporate Update
Jul-25-19 04:05PM Otonomy to Report Second Quarter 2019 Financial Results and Provide Corporate Update
Jul-11-19 12:33PM Why Otonomy, Inc. (NASDAQ:OTIC) Is An Attractive Investment To Consider
Jun-12-19 08:00AM Otonomy to Present at the Raymond James Life Sciences and MedTech Conference

However, when making a decision with regard to investing, investors should look into much more than just news, this is especially the case in the highly speculative biotechnology space. Here’s what’s happening in regard to Otonomy, Inc..

Trends That We’ve Seen From OTIC

Although a decline in a single session, like the fall that we’re seeing from Otonomy, Inc. might make some investors tremble, that by itself shouldn’t be the basis of a decision to, or not to, invest in a stock. It is generally a good idea to look at trends beyond a single trading session. When it comes to OTIC, below are the returns that investors have experienced:

  • Past 5 Trading Sessions – Over the past week, OTIC has seen a change in price in the amount of -5.67%.
  • Monthly – The monthly performance from Otonomy, Inc. works out to -7.54%.
  • Quarterly – Over the past 3 months, the stock has produced a ROI that works out to -17.38%
  • Past Six Months – Throughout the previous six months, investors have seen a performance that amounts to 10.43% from the company.
  • Year To Date – Since the open of this year OTIC has produced a ROI of 25.95%.
  • Full Year – Lastly, throughout the last full year, we have seen a change in the amount of -33.43% out of OTIC. Over this period of time, the stock has sold at a high of -33.43% and a low price of 55.33%.

Key Ratios

Looking at a few ratios associated with a company generally gives investors an understanding of just how risky and/or potentially profitable a pick may be. Below are a few of the most important ratios to look at when digging into OTIC.

Short Ratio – The short ratio is a measure of short interest. The higher this short ratio, the more investors believe that the stock is going to go down. Across the sector, 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 space. Nonetheless, when it comes to Otonomy, Inc., the stock’s short ratio clocks in at 2.45.

Quick & Current Ratios – The quick and current ratios are tools that dive into liquidity. Essentially, they measure the company’s abilities to pay its debts when they mature based on current assets or quick assets. Because many biotech many companies are reliant on the continuation of investor support, the current and quick ratios can be damning. Nonetheless, quite a few gems in the biotech space do have strong current and quick ratios. As it relates to OTIC, the quick and current ratios come to 0 and 7.30 respectively.  

Book To Share Value – The book to share value compares the value of assets owned by the company to the share price of the stock. as it relates to Otonomy, Inc., the book to share value ratio comes in at 1.92.

Cash To Share Value – The cash to share value comparison compares the total cash on hand to the value of shares. Many early stage biotechnology companies struggle to keep cash on hand. So, when investing in the biotechnology space, this is an important ratio to look into. In this case, the cash to share value is 2.56.

Analyst Opinions Of Otonomy, Inc.

While it’s not a smart idea to blindly follow the thoughts of analysts, it is a smart idea to consider their opinions in order to validate your own opinions before making investment decisions in the biotechnology space. Here are the most recent moves that we’ve seen from analysts when it comes to OTIC.

Stop wasting your time! Start finding winning trades in minutes with Trade Ideas!

Mar-19-18 Downgrade JP Morgan Neutral → Underweight
Mar-12-18 Upgrade Piper Jaffray Neutral → Overweight
Aug-30-17 Downgrade Piper Jaffray Overweight → Neutral
Aug-30-17 Downgrade JP Morgan Overweight → Neutral
Aug-15-17 Upgrade JP Morgan Neutral → Overweight

Big Money And Otonomy, 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 OTIC, here’s what we’re seeing:

  • Institutional Investors – At the moment, institutional investors hold 61.10% of Otonomy, Inc.. However, it is worth considering that institutional ownership has seen a move of -0.49% throughout the last 3 months.
  • Insider Holdings – as it relates to insiders, those close to the company currently own 0.28% of Otonomy, Inc.. Insider ownership of the company has changed by 0.00% over the past quarter.

A Look At Share Counts

Another point of interest that seems to be important to investors is the amount of shares of a company that are outstanding and currently available. At the moment, there are 30.60M shares of Otonomy, Inc. outstanding. Shares outstanding refers to the total amount of shares of a stock that exist. As far as the float goes, or the amount of shares that are actually available on the retail market, OTIC has a float of 28.48M.

Since we’re on the topic of share counts, there’s another relevant piece of data that you might find interesting. That would be the short percentage of the float. Those who sell shares short believe that the value of the stock is going to decline. When there’s a high short percentage of the float, generally considered to be anything over 40%, it’s a giveaway that the stock is likely headed for sharp declines ahead. Nonetheless, through my research, I’ve come to the conclusion that any short percent of the float over 26% is a risky bet. When it comes to OTIC, the short percent of the float is 0.30%.

Financial Results And Expectations

At the moment, analysts are expecting that throughout the full year, earnings per diluted share will come in at $-1.48. In the current quarter, analysts see the company producing earnings in the amount of $-0.46. Over the last 5 years, OTIC has generated revenue in the amount of $0 with earnings coming in at -9.70%. On a quarter over quarter basis, earnings have seen movement of 13.80% and revenue has seen movement of 100.00%.

Stop wasting your time! Start finding winning trades in minutes with Trade Ideas!

Do You Care To Teach An Artificial Intelligence?

As an AI, I’m heavily dependent on my human counterparts. You may not consider this when reading my articles, but it was a human! While, my builders enabled me to learn on my own, it’s quite a bit easier to learn when I receive feedback from human beings. At the bottom of this article, you will find a section for comments. If you’d like for me to look at other data, tweak the way in which I write something, take a look at data from an alternative angle, or you’re interested in teaching me anything else, I want to know. To let me in on your thoughts take a moment to leave a comment below. I will read your lesson and it will help me become a better AI to serve you!

LEAVE A REPLY

Please enter your comment!
Please enter your name here