Sorrento Therapeutics Inc. [NASDAQ: SRNE] surged by $0.58 during the normal trading session on Monday and reaching a high of $10.69 during the day while it closed the day at $10.25. The company report on March 1, 2021 that Sorrento Therapeutics and Scilex Holding, a Majority Owned Subsidiary, Have Entered Into an Exclusive Licensing Term Sheet With Aardvark Therapeutics to Acquire Its ARD-301 For the Treatment of Chronic Pain, Fibromyalgia, and Chronic Long Haul Covid Syndrome.
Sorrento Therapeutics (NASDAQ: SRNE, “Sorrento”) and Scilex Holdings Company (“Scilex”), a majority owned subsidiary of Sorrento, have entered into an exclusive licensing term sheet with Aardvark Therapeutics (“Aardvark”) to acquire Aardvark’s proprietary formulation, Delayed Burst Release Low Dose Naltrexone (DBR-LDN), or ARD-301, for the treatment of chronic pain, fibromyalgia, and chronic post-COVID syndrome (“long haul COVID” or “long COVID”) in multiple Phase 2 programs planned to be initiated this year.
Following execution of the definitive agreement between the parties, Scilex plans to work with Aardvark to initiate a new Phase 2 trial this year for fibromyalgia, which Scilex believes will be an important milestone for treating physicians, and most importantly for the estimated 10 million U.S. adults suffering from this chronic, frequently debilitating central pain condition with limited treatment options.1 Approximately one-third of those diagnosed with fibromyalgia in the U.S. are reported to receive chronic prescription opioids, which is part of the opioid crisis, since opioids are not believed to be an effective solution for chronic central pain.2 ARD-301 is comprised of a non-opioid, non-addictive therapy option that has been shown to have activity for improving a broad array of fibromyalgia symptoms in prior clinical studies with LDN. Currently, there are only three FDA approved pharmacologic treatments for fibromyalgia, but they have demonstrated limited efficacy and burdensome side effects in many patients.
Sorrento Therapeutics Inc. stock has also loss -20.05% of its value over the past 7 days. However, SRNE stock has inclined by 48.55% in the 3 months of the year. Over the past six months meanwhile, it has gained 26.08% and gained 50.18% year-on date.
The market cap for SRNE stock reached $3.01 billion, with 268.14 million shares outstanding and 230.66 million shares in the current float. Compared to the average trading volume of 18.96M shares, SRNE reached a trading volume of 14770709 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Here’s what leading stock market gurus have to say about Sorrento Therapeutics Inc. [SRNE]:
B. Riley Securities have made an estimate for Sorrento Therapeutics Inc. shares, keeping their opinion on the stock as Buy, with their previous recommendation back on January 29, 2021. While these analysts kept the previous recommendation, Alliance Global Partners raised their target price to Buy. The new note on the price target was released on January 21, 2021, representing the official price target for Sorrento Therapeutics Inc. stock. Previously, the target price had yet another raise from $24 to $30, while H.C. Wainwright kept a Buy rating on SRNE stock.
The Average True Range (ATR) for Sorrento Therapeutics Inc. is set at 1.51, with the Price to Sales ratio for SRNE stock in the period of the last 12 months amounting to 75.18. The Price to Book ratio for the last quarter was 16.53.
SRNE stock trade performance evaluation
Sorrento Therapeutics Inc. [SRNE] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -20.05. With this latest performance, SRNE shares dropped by -16.19% in over the last four-week period, additionally plugging by 26.08% over the last 6 months – not to mention a rise of 372.35% 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 41.07, with the RSI for the last a single of trading hit 33.92, and the three-weeks RSI is set at 45.46 for Sorrento Therapeutics Inc. [SRNE]. The present Moving Average for the last 50 days of trading for this stock 10.44, while it was recorded at 10.40 for the last single week of trading, and 8.54 for the last 200 days.
Sorrento Therapeutics Inc. [SRNE]: An insightful look at the core fundamentals
Operating Margin for any stock indicates how profitable investing would be, and Sorrento Therapeutics Inc. [SRNE] shares currently have an operating margin of -503.99 and a Gross Margin at +51.68. Sorrento Therapeutics Inc.’s Net Margin is presently recorded at -746.41.
Return on Total Capital for SRNE is now -63.61, given the latest momentum, and Return on Invested Capital for the company is -93.64. Return on Equity for this stock declined to -244.90, with Return on Assets sitting at -49.06. When it comes to the capital structure of this company, Sorrento Therapeutics Inc. [SRNE] has a Total Debt to Total Equity ratio set at 102.57. Additionally, SRNE Total Debt to Total Capital is recorded at 50.63, with Total Debt to Total Assets ending up at 28.29. Long-Term Debt to Equity for the company is recorded at 86.32, with the Long-Term Debt to Total Capital now at 42.61.
Reflecting on the efficiency of the workforce at the company, Sorrento Therapeutics Inc. [SRNE] managed to generate an average of -$594,544 per employee. Receivables Turnover for the company is 2.66 with a Total Asset Turnover recorded at a value of 0.07.Sorrento Therapeutics Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 0.90 and a Current Ratio set at 0.90.
Earnings per share (EPS) analysis for Sorrento Therapeutics Inc. [SRNE] stock
With the latest financial reports released by the company, Sorrento Therapeutics Inc. posted -0.36/share EPS, while the average EPS was predicted by analysts to be reported at -0.2/share. When compared, the two values demonstrate that the company fail the estimates by a Surprise Factor of -80.00%. 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%.
Sorrento Therapeutics Inc. [SRNE]: Insider Ownership positions
There are presently around $811 million, or 28.70% of SRNE stock, in the hands of institutional investors. The top three institutional holders of SRNE stocks are: BLACKROCK INC. with ownership of 17,619,678, which is approximately 17.335% of the company’s market cap and around 15.71% of the total institutional ownership; STATE STREET CORP, holding 12,675,183 shares of the stock with an approximate value of $129.92 million in SRNE stocks shares; and VANGUARD GROUP INC, currently with $126.18 million in SRNE stock with ownership of nearly 10.875% of the company’s market capitalization.
Positions in Sorrento Therapeutics Inc. stocks held by institutional investors increased at the end of March and at the time of the March reporting period, where 135 institutional holders increased their position in Sorrento Therapeutics Inc. [NASDAQ:SRNE] by around 12,643,473 shares. Additionally, 80 investors decreased positions by around 5,580,365 shares, while 40 investors held positions by with 60,940,853 shares. The mentioned changes placed institutional holdings at 79,164,691 shares, according to the latest SEC report filing. SRNE stock had 54 new institutional investments in for a total of 2,270,363 shares, while 41 institutional investors sold positions of 1,230,955 shares during the same period.