Otonomy Inc. [OTIC] moved down -44.34: Why It’s Important

Otonomy Inc. [NASDAQ: OTIC] stock went on a downward path that fall over -44.34% on Monday, amounting to a one-week price decrease of less than -42.20%. The company report on February 22, 2021 that Otonomy Announces Top-Line Results for the Phase 3 Clinical Trial of OTIVIDEX® in Patients with Ménière’s Disease.

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Otonomy, Inc. (Nasdaq: OTIC), a biopharmaceutical company dedicated to the development of innovative therapeutics for neurotology, announced that the Phase 3 clinical trial of OTIVIDEX in patients with Ménière’s disease did not achieve the primary endpoint, which was the count of definitive vertigo days (DVD) in Month 3 for OTIVIDEX vs. placebo for the intent-to-treat (ITT) population (n = 148; p value = 0.312) using the Negative Binomial Model. This analysis did achieve statistical significance for the per protocol (PP) population (n = 136; p value = 0.031). These results were similar using the Generalized Poisson model (p value = 0.340 for ITT and p value = 0.030 for PP).

“We are disappointed by the top-line results for the primary intent-to-treat population and are undertaking an assessment to understand the difference observed with the per protocol analysis. We thank the many patients, clinical investigators and study site staff who supported this effort,” said David A. Weber, Ph.D., president and CEO of Otonomy. “Our focus turns to the strong pipeline we have built as recently highlighted by the successful clinical trial results for OTO-313 in tinnitus and OTO-413 in hearing loss. OTO-313 and OTO-413 each address a large patient population with significant unmet need and no approved drug therapy. These programs provide an attractive opportunity for the company with clinical readouts anticipated in mid-2022. We expect that our existing cash balance will permit us to achieve these clinical readouts as well as advance our preclinical hearing loss programs including OTO-825, a gene therapy for congenital hearing loss.”.

Over the last 12 months, OTIC stock dropped by -15.49%. 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 $143.88 million, with 52.34 million shares outstanding and 48.20 million shares in the current float. Compared to the average trading volume of 664.17K shares, OTIC stock reached a trading volume of 16242832 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 0.62, with the Price to Sales ratio for OTIC stock in the period of the last 12 months amounting to 479.60. The Price to Book ratio for the last quarter was 2.36, with the Price to Cash per share for the same quarter was set at 1.80.

OTIC Stock Performance Analysis:

Otonomy Inc. [OTIC] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -42.20. With this latest performance, OTIC shares dropped by -36.17% in over the last four-week period, additionally sinking by -30.72% over the last 6 months – not to mention a drop of -15.49% 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 28.10, with the RSI for the last a single of trading hit 21.62, and the three-weeks RSI is set at 32.72 for Otonomy Inc. [OTIC]. The present Moving Average for the last 50 days of trading for this stock 5.39, while it was recorded at 4.91 for the last single week of trading, and 4.09 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 -22449.45 and a Gross Margin at -724.18. Otonomy Inc.’s Net Margin is presently recorded at -16384.98.

Return on Total Capital for OTIC is now -71.12, given the latest momentum, and Return on Invested Capital for the company is -53.96. Return on Equity for this stock declined to -84.00, with Return on Assets sitting at -47.26. When it comes to the capital structure of this company, Otonomy Inc. [OTIC] has a Total Debt to Total Equity ratio set at 48.70. Additionally, OTIC Total Debt to Total Capital is recorded at 32.75, with Total Debt to Total Assets ending up at 30.37. Long-Term Debt to Equity for the company is recorded at 43.77, with the Long-Term Debt to Total Capital now at 29.44.

Reflecting on the efficiency of the workforce at the company, Otonomy Inc. [OTIC] managed to generate an average of -$798,768 per employee. Receivables Turnover for the company is 11.38 with a Total Asset Turnover recorded at a value of 0.00.Otonomy Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 8.00 and a Current Ratio set at 8.10.

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 -0.36/share. When compared, the two values demonstrate that the company fail the estimates by a Surprise Factor of -5.60%. 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 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 $104 million, or 77.50% of OTIC stock, in the hands of institutional investors. The top three institutional holders of OTIC stocks are: FEDERATED HERMES, INC. with ownership of 3,930,649, which is approximately -0.003% of the company’s market cap and around 0.25% of the total institutional ownership; ORBIMED ADVISORS LLC, holding 3,250,000 shares of the stock with an approximate value of $9.75 million in OTIC stocks shares; and SOFINNOVA INVESTMENTS, INC., currently with $7.86 million in OTIC stock with ownership of nearly 24.108% of the company’s market capitalization.

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Positions in Otonomy Inc. stocks held by institutional investors increased at the end of February and at the time of the February reporting period, where 42 institutional holders increased their position in Otonomy Inc. [NASDAQ:OTIC] by around 5,502,846 shares. Additionally, 31 investors decreased positions by around 5,926,219 shares, while 14 investors held positions by with 23,077,653 shares. The mentioned changes placed institutional holdings at 34,506,718 shares, according to the latest SEC report filing. OTIC stock had 20 new institutional investments in for a total of 2,439,520 shares, while 9 institutional investors sold positions of 2,387,553 shares during the same period.

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