Heron Therapeutics Inc. [NASDAQ: HRTX] loss -28.08% on the last trading session, reaching $14.26 price per share at the time. About 24 hours ago, the commercial-stage biotechnology company, Heron announced the receiving of a Complete Response Letter (CRL) from the U.S. Food and Drug Administration (FDA). The biotech firm received the letter on June 26, 2020. The letter was regarding the New Drug Application (NDA) for HTX-011 mooting the management of postoperative pain.
The Complete Response Letter mentioned NDA’s non-approval from the FDA. NDA was not approved due to its current form as the FDA wants more non-clinical information to be updated. However, the letter did not mention any sort of efficacy or CMC issues or clinical safety measures for NDA. The four issues identified are not based on the subject of observed toxicity. The company is committed to resolving the non-clinical issues highlighted in the CRL and is keen to resubmit the NDA.
Heron Therapeutics Inc. represents 90.41 million in outstanding shares, while the company has a total market value of $1.34 billion with the latest information. HRTX stock price has been found in the range of $12.52 to $14.90.
If compared to the average trading volume of 1.08M shares, HRTX reached a trading volume of 12864384 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Here is what top equities market gurus are saying about Heron Therapeutics Inc. [HRTX]:
Guggenheim have made an estimate for Heron Therapeutics Inc. shares, keeping their opinion on the stock as Buy, with their previous recommendation back on May 27, 2020. While these analysts kept the previous recommendation, Needham dropped their target price from $50 to $48. The new note on the price target was released on February 20, 2020, representing the official price target for Heron Therapeutics Inc. stock. Previously, the target price had yet another drop from $66 to $64, while Needham kept a Buy rating on HRTX stock.
The Average True Range (ATR) for Heron Therapeutics Inc. is set at 1.55, with the Price to Sales ratio for HRTX stock in the period of the last 12 months amounting to 9.58. The Price to Book ratio for the last quarter was 3.53, with the Price to Cash per share for the same quarter was set at 3.79.
Trading performance analysis for HRTX stock
Heron Therapeutics Inc. [HRTX] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -33.61. With this latest performance, HRTX shares dropped by -21.76% in over the last four-week period, additionally sinking by -40.85% over the last 6 months – not to mention a drop of -23.32% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for HRTX stock in for the last two-week period is set at 32.04, with the RSI for the last a single of trading hit 24.13, and the three-weeks RSI is set at 37.34 for Heron Therapeutics Inc. [HRTX]. The present Moving Average for the last 50 days of trading for this stock 17.17, while it was recorded at 19.04 for the last single week of trading, and 19.20 for the last 200 days.
Heron Therapeutics Inc. [HRTX]: A deeper dive into fundamental analysis
Operating Margin for any stock indicates how profitable investing would be, and Heron Therapeutics Inc. [HRTX] shares currently have an operating margin of -144.34 and a Gross Margin at +57.79. Heron Therapeutics Inc.’s Net Margin is presently recorded at -140.27.
Return on Total Capital for HRTX is now -52.78, given the latest momentum, and Return on Invested Capital for the company is -52.08. Return on Equity for this stock declined to -52.91, with Return on Assets sitting at -42.00. When it comes to the capital structure of this company, Heron Therapeutics Inc. [HRTX] has a Total Debt to Total Equity ratio set at 4.90. Additionally, HRTX Total Debt to Total Capital is recorded at 4.67, with Total Debt to Total Assets ending up at 3.86. Long-Term Debt to Equity for the company is recorded at 3.03, with the Long-Term Debt to Total Capital now at 2.89.
Reflecting on the efficiency of the workforce at the company, Heron Therapeutics Inc. [HRTX] managed to generate an average of -$886,359 per employee. Receivables Turnover for the company is 2.79 with a Total Asset Turnover recorded at a value of 0.30.Heron Therapeutics Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 4.20 and a Current Ratio set at 4.50.
Heron Therapeutics Inc. [HRTX]: An earnings per share (EPS) analysis
With the latest financial reports released by the company, Heron Therapeutics Inc. posted -0.63/share EPS, while the average EPS was predicted by analysts to be reported at -0.64/share.When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 1.60%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for HRTX. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Heron Therapeutics Inc. go to 47.50%.
An analysis of insider ownership at Heron Therapeutics Inc. [HRTX]
There are presently around $1,873 million, in the hands of institutional investors. The top three institutional holders of HRTX stocks are: FRANKLIN RESOURCES INC with ownership of 12,742,271, which is approximately 3.081% of the company’s market cap and around 0.10% of the total institutional ownership; VANGUARD GROUP INC, holding 7,984,465 shares of the stock with an approximate value of $158.25 million in HRTX stocks shares; and BAKER BROS. ADVISORS LP, currently with $119.28 million in HRTX stock with ownership of nearly 0% of the company’s market capitalization.
Positions in Heron Therapeutics Inc. stocks held by institutional investors increased at the end of May and at the time of the May reporting period, where 126 institutional holders increased their position in Heron Therapeutics Inc. [NASDAQ:HRTX] by around 12,607,965 shares. Additionally, 91 investors decreased positions by around 17,917,631 shares, while 30 investors held positions by with 63,956,964 shares. The mentioned changes placed institutional holdings at 94,482,560 shares, according to the latest SEC report filing. HRTX stock had 40 new institutional investments in for a total of 5,434,393 shares, while 42 institutional investors sold positions of 4,941,966 shares during the same period.