Otonomy Inc. [NASDAQ: OTIC] stock went on an upward path that rose over 9.09% on Friday, amounting to a one-week price increase of more than 32.91%. Recently, the biopharmaceutical firm announced that it has initiated an underwritten common stock public offering. All the common stock offerings to be sold will be offered by the firm. Moreover, Otonomy will also offer and sell certain investors pre-funded warrants for purchasing the shares.
In the following underwritten offerings, Otonomy will offer the underwriters a 30-day option to purchase an additional 15% shares of the common stock. The company will decide the closing of the offerings and its actual size depending upon the market and other conditions. A preliminary prospectus will be available on SEC’s website that will provide all the terms and conditions required for the offering. The active and passive book-runners of the offering are Cowen and Piper Sandler, and Cantor Fitzgerald & Co., respectively.
The average equity rating for OTIC stock is currently 1.80, trading closer to a bullish pattern in the stock market.
The market cap for the stock reached $118.82 million, with 30.81 million shares outstanding and 28.59 million shares in the current float. Compared to the average trading volume of 226.88K shares, OTIC stock reached a trading volume of 874857 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Guru’s Opinion on Otonomy Inc. [OTIC]:
Oppenheimer have made an estimate for Otonomy Inc. shares, keeping their opinion on the stock as Outperform, with their previous recommendation back on June 01, 2020. While these analysts kept the previous recommendation, Oppenheimer raised their target price to Outperform. The new note on the price target was released on December 24, 2019, representing the official price target for Otonomy Inc. stock.
The Average True Range (ATR) for Otonomy Inc. is set at 0.34, with the Price to Sales ratio for OTIC stock in the period of the last 12 months amounting to 198.03. The Price to Book ratio for the last quarter was 4.33, with the Price to Cash per share for the same quarter was set at 1.72.
OTIC Stock Performance Analysis:
Otonomy Inc. [OTIC] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 32.91. With this latest performance, OTIC shares gained by 27.27% in over the last four-week period, additionally plugging by 18.98% over the last 6 months – not to mention a rise of 66.07% 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 OTIC stock in for the last two-week period is set at 71.51, with the RSI for the last a single of trading hit 74.28, and the three-weeks RSI is set at 69.40 for Otonomy Inc. [OTIC]. The present Moving Average for the last 50 days of trading for this stock 2.95, while it was recorded at 3.67 for the last single week of trading, and 2.73 for the last 200 days.
Insight into Otonomy Inc. Fundamentals:
Operating Margin for any stock indicates how profitable investing would be, and Otonomy Inc. [OTIC] shares currently have an operating margin of -10117.83 and a Gross Margin at -243.50. Otonomy Inc.’s Net Margin is presently recorded at -7445.83.
Return on Total Capital for OTIC is now -72.13, given the latest momentum, and Return on Invested Capital for the company is -54.14. Return on Equity for this stock declined to -74.48, with Return on Assets sitting at -47.52. When it comes to the capital structure of this company, Otonomy Inc. [OTIC] has a Total Debt to Total Equity ratio set at 83.49. Additionally, OTIC Total Debt to Total Capital is recorded at 45.50, with Total Debt to Total Assets ending up at 40.46. Long-Term Debt to Equity for the company is recorded at 75.28, with the Long-Term Debt to Total Capital now at 41.03.
Reflecting on the efficiency of the workforce at the company, Otonomy Inc. [OTIC] managed to generate an average of -$911,735 per employee. Receivables Turnover for the company is 7.69 with a Total Asset Turnover recorded at a value of 0.01.Otonomy Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 4.40 and a Current Ratio set at 4.40.
OTIC Stock EPS
With the latest financial reports released by the company, Otonomy Inc. posted -0.38/share EPS, while the average EPS was predicted by analysts to be reported at -0.48/share.When compared, the two values demonstrate that the company surpassed the estimates by a Surprise Factor of 20.80%. 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 OTIC. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Otonomy Inc. go to 20.40%.
Otonomy Inc. [OTIC] Insider Position Details
There are presently around $76 million, or 66.00% of OTIC stock, in the hands of institutional investors. The top three institutional holders of OTIC stocks are: TPG GROUP HOLDINGS (SBS) ADVISORS, INC. with ownership of 2,159,335, which is approximately 0% of the company’s market cap and around 0.20% of the total institutional ownership; RENAISSANCE TECHNOLOGIES LLC, holding 1,922,965 shares of the stock with an approximate value of $8.08 million in OTIC stocks shares; and SOFINNOVA INVESTMENTS, INC., currently with $6.37 million in OTIC stock with ownership of nearly 0% of the company’s market capitalization.
Positions in Otonomy Inc. stocks held by institutional investors increased at the end of May and at the time of the May reporting period, where 25 institutional holders increased their position in Otonomy Inc. [NASDAQ:OTIC] by around 2,209,062 shares. Additionally, 23 investors decreased positions by around 1,981,663 shares, while 10 investors held positions by with 13,816,573 shares. The mentioned changes placed institutional holdings at 18,007,298 shares, according to the latest SEC report filing. OTIC stock had 12 new institutional investments in for a total of 1,333,137 shares, while 4 institutional investors sold positions of 688,780 shares during the same period.