Sorrento Therapeutics Inc. [SRNE] Revenue clocked in at $35.50 million, up 125.74% YTD: What’s Next?

Sorrento Therapeutics Inc. [NASDAQ: SRNE] loss -4.74% or -0.38 points to close at $7.63 with a heavy trading volume of 18953577 shares. The company report on August 20, 2020 that Sorrento Enters Into Merger Agreement to Acquire SmartPharm and Develop Pipeline of Gene-Encoded Therapeutic Antibodies, Starting With Neutralizing Antibodies to Treat COVID-19 and Cancer Therapeutics.

Sorrento Therapeutics, Inc. (Nasdaq: SRNE, “Sorrento”) and SmartPharm Therapeutics, Inc. (“SmartPharm”) announced today the signing of a merger agreement under which Sorrento will acquire SmartPharm, a gene-encoded therapeutics company developing non-viral DNA and RNA gene delivery platforms for COVID-19 and rare diseases with broad potential for application in enhancing antibody-centric therapeutics.

As previously announced on July 24, 2020, Sorrento and SmartPharm entered into a letter of intent setting forth the terms and conditions by which Sorrento would acquire SmartPharm. In consideration for the acquisition, at closing, SmartPharm equity holders will receive up to an aggregate of $19.4 million of shares of Sorrento common stock, subject to certain adjustments, based on a price per share calculated in accordance with the merger agreement.

It opened the trading session at $7.80, the shares rose to $8.05 and dropped to $7.53, the range by which the price of stock traded the whole day. The daily chart for SRNE points out that the company has recorded 256.54% gains over the past six months. However, it is still -448.92% lower than its most recent low trading price.

If we look at the average trading volume of 41.01M shares, SRNE reached to a volume of 18953577 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 Sorrento Therapeutics Inc. [SRNE]:

H.C. Wainwright have made an estimate for Sorrento Therapeutics Inc. shares, keeping their opinion on the stock as Buy, with their previous recommendation back on July 31, 2020. While these analysts kept the previous recommendation, Dawson James raised their target price to Buy. The new note on the price target was released on May 26, 2020, representing the official price target for Sorrento Therapeutics Inc. stock. Previously, the target price had yet another raise to $21, while JMP Securities analysts kept a Mkt Outperform rating on SRNE stock.

The Average True Range (ATR) for Sorrento Therapeutics Inc. is set at 1.49, with the Price to Sales ratio for SRNE stock in the period of the last 12 months amounting to 51.08. The Price to Book ratio for the last quarter was 12.11.

Trading performance analysis for SRNE stock

Sorrento Therapeutics Inc. [SRNE] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -7.23. With this latest performance, SRNE shares dropped by -21.90% in over the last four-week period, additionally plugging by 256.54% over the last 6 months – not to mention a rise of 272.20% 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 SRNE stock in for the last two-week period is set at 39.25, with the RSI for the last a single of trading hit 32.04, and the three-weeks RSI is set at 43.87 for Sorrento Therapeutics Inc. [SRNE]. The present Moving Average for the last 50 days of trading for this stock 9.03, while it was recorded at 8.11 for the last single week of trading, and 4.67 for the last 200 days.

Sorrento Therapeutics Inc. [SRNE]: A deeper dive into fundamental analysis

Operating Margin for any stock indicates how profitable investing would be, and Sorrento Therapeutics Inc. [SRNE] shares currently have an operating margin of -620.97 and a Gross Margin at +48.53. Sorrento Therapeutics Inc.’s Net Margin is presently recorded at -929.21.

Return on Total Capital for SRNE is now -51.07, given the latest momentum, and Return on Invested Capital for the company is -76.62. Return on Equity for this stock declined to -202.78, with Return on Assets sitting at -45.19. When it comes to the capital structure of this company, Sorrento Therapeutics Inc. [SRNE] has a Total Debt to Total Equity ratio set at 370.01. Additionally, SRNE Total Debt to Total Capital is recorded at 78.72, with Total Debt to Total Assets ending up at 47.05. Long-Term Debt to Equity for the company is recorded at 319.64, with the Long-Term Debt to Total Capital now at 68.01.

Reflecting on the efficiency of the workforce at the company, Sorrento Therapeutics Inc. [SRNE] managed to generate an average of -$942,155 per employee. Receivables Turnover for the company is 3.33 with a Total Asset Turnover recorded at a value of 0.05.Sorrento Therapeutics Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.60 and a Current Ratio set at 0.60.

Sorrento Therapeutics Inc. [SRNE]: An earnings per share (EPS) analysis

With the latest financial reports released by the company, Sorrento Therapeutics Inc. posted -0.5/share EPS, while the average EPS was predicted by analysts to be reported at -0.43/share. When compared, the two values demonstrate that the company fail the estimates by a Surprise Factor of -16.30%. 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 SRNE. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for Sorrento Therapeutics Inc. go to 37.00%.

An analysis of insider ownership at Sorrento Therapeutics Inc. [SRNE]

There are presently around $469 million, or 25.80% of SRNE stock, in the hands of institutional investors. The top three institutional holders of SRNE stocks are: BLACKROCK INC. with ownership of 12,539,053, which is approximately 42.65% of the company’s market cap and around 34.21% of the total institutional ownership; STATE STREET CORP, holding 9,990,515 shares of the stock with an approximate value of $76.23 million in SRNE stocks shares; and VANGUARD GROUP INC, currently with $74.53 million in SRNE stock with ownership of nearly 48.728% of the company’s market capitalization.

Positions in Sorrento Therapeutics Inc. stocks held by institutional investors increased at the end of May and at the time of the May reporting period, where 156 institutional holders increased their position in Sorrento Therapeutics Inc. [NASDAQ:SRNE] by around 29,148,290 shares. Additionally, 32 investors decreased positions by around 1,645,858 shares, while 7 investors held positions by with 30,657,108 shares. The mentioned changes placed institutional holdings at 61,451,256 shares, according to the latest SEC report filing. SRNE stock had 101 new institutional investments in for a total of 5,268,490 shares, while 12 institutional investors sold positions of 704,275 shares during the same period.

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