Catabasis Pharmaceuticals, Inc. (CATB) Stock: Here’s Why It’s Falling

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Catabasis Pharmaceuticals, Inc. (CATB) is falling in the market today. The company, focused on the biotech space, is presently priced at $4.56 after a move down of -5.79% so far in today’s session. As it relates to biotechnology stocks, there are a number of aspects that have the ability to cause price movement in the market. News is one of the most common reasons for movement. Here are the most recent headlines relating to CATB:

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Oct-05-19 08:00AM Catabasis Pharmaceuticals Presents Edasalonexent, a Potential Foundational Treatment for Duchenne Muscular Dystrophy
Sep-30-19 04:05PM Catabasis Pharmaceuticals Announces the Phase 3 PolarisDMD Trial of Edasalonexent in Duchenne Muscular Dystrophy has Exceeded Target Enrollment
Sep-27-19 08:00AM Catabasis Pharmaceuticals to Present the MoveDMD Trial of Edasalonexent in Duchenne Muscular Dystrophy at the 24th International Congress of the World Muscle Society
Sep-26-19 08:00AM Catabasis Pharmaceuticals and the Jain Foundation Announce a Preclinical Research Collaboration to Study Edasalonexent in Dysferlinopathy
Sep-25-19 08:00AM Catabasis Pharmaceuticals Names Andrew A. Komjathy Chief Commercial Officer

However, any time investors are making a decision to invest, prospective investors should focus on much more than just news, this is especially the case in the generally speculative biotechnology space. Here’s what’s happening with Catabasis Pharmaceuticals, Inc..

The Performance That CATB Investors Have Experienced

While a move down on a single session, like the move that we’re seeing from Catabasis Pharmaceuticals, Inc. may cause fear in some investors, a single session decline alone should not be the reason for a decision to, or not to, invest in a stock. It is generally smart to look at trends further out than a single trading session. In the case of CATB, below are the trends that investors have seen:

  • Past 7 Days – In the past 5 trading sessions, CATB has seen a price change amounting to -15.56%.
  • Past Month – The ROI from Catabasis Pharmaceuticals, Inc. in the past 30 days has been -24.00%.
  • Past Quarter – Throughout the last 3 months, the stock has generated a ROI that works out to -39.84%
  • Bi-Annually – In the past 6 months, we have seen a change of -48.47% from the stock.
  • YTD – Since the open of this year CATB has resulted in a ROI of 4.35%.
  • Full Year – Lastly, in the past full year, we’ve seen a change of -39.91% from CATB. In this period, the stock has traded at a high price of -53.28% and a low of 26.67%.

Ratios Worth Paying Attention To

Looking at a few key ratios having to do with a company can provide traders an understanding of just how dangerous and/or rewarding a pick may be. Below are some of the most important ratios to consider when digging into CATB.

Short Ratio – The short ratio is a tool that’s used by investors to measure the level of short interest. The higher this short ratio, the more investors believe that the price of the stock is going to tumble. In general, biotech stocks can carry a higher short ratio. On the other hand, we also see quite a few short squeezes in the industry. Nonetheless, as it relates to Catabasis Pharmaceuticals, Inc., the stock’s short ratio clocks in at 12.03.

Quick & Current Ratios – The quick and current ratios are tools that are used to get an idea of the company’s liquidity. Basically, they measure the company’s abilities to pay for its debts when they mature based on quick assets or current assets. Because many biotech several companies rely heavily on continued investor support, these ratios can be damning. Nonetheless, quite a few gems in the biotech sector come with strong quick and current ratios. As it relates to CATB, the quick and current ratios work out to 9.10 and 9.10 respectively.  

Book To Share Value – The book to share value ratio compares the the price of shares to the book value of assets that are owned by the company. In this case, that ratio comes in at 3.77.

Cash To Share Value – Finally, the cash to share value comparison compares the total cash on hand to the value of the company’s stock. Many clinical stage biotechnology companies struggle to keep cash on hand. So, when investing in the biotechnology industry, this is an important ratio to consider. In terms of CATB, the cash to share value is 3.94.

Analyst Opinions Of Catabasis Pharmaceuticals, Inc.

While it’s not a smart idea to avoid doing your DD and blindly following the opinions of analysts, it is a good idea to use their opinions in order to validate your own opinions before making investment decisions in the biotechnology industry. Here are the most recent moves that we’ve seen from analysts as it relates to CATB.

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Oct-05-17 Reiterated Oppenheimer Outperform $4 → $7
Feb-02-17 Downgrade Citigroup Buy → Neutral
Dec-22-16 Initiated H.C. Wainwright Buy $14
Jun-08-16 Reiterated Wedbush Outperform $27 → $17
Jul-20-15 Initiated Wedbush Outperform $27

Smart Money Follows Big Money

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 CATB, here’s what we’re seeing:

  • Institutional Investors – Currently, institutions own 43.70% of the company. On the other hand, it is worth mentioning that institutional ownership has moved in the amount of 0 over the last quarter.
  • Insiders – When it comes to insiders, members of the management team and others close to CATB currently own 1.87% of the company. Insider ownership of the company has changed in the amount of 0.00% over the last quarter.

Interested In How Many Shares Are Available?

Investors and traders seem to be interested in the counts of shares both available and outstanding. As far as Catabasis Pharmaceuticals, Inc., currently there are 11.71M and there is a float of 11.52M. This means that out of the total of 11.71M shares of CATB in existence today, 11.52M are able to be traded on the public market.

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 CATB, the short percent of the float is 5.08%.

Financial Performance

At the moment, analysts are expecting that throughout the full year, earnings per diluted share will come in at $-2.29. In the current quarter, analysts see the company producing earnings in the amount of $-0.64. Over the last 5 years, CATB has generated revenue in the amount of $0 with earnings coming in at 17.10%. On a quarter over quarter basis, earnings have seen movement of 68.70% and revenue has seen movement of 0.

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