A History of Outperforming Analyst Forecasts and Beating the Odds: Cidara Therapeutics Inc. (CDTX)

Cidara Therapeutics Inc. (NASDAQ: CDTX) stock jumped 18.49% on Monday to $0.93 against a previous-day closing price of $0.78. With 2.86 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.56 million shares. During the session, the Biotechnology company that operates in wider Healthcare sector, reached to the highest price of $0.9299 whereas the lowest price it dropped to was $0.7999. The 52-week range on CDTX shows that it touched its highest point at $1.60 and its lowest point at $0.40 during that stretch. It currently has a 1-year price target of $5.50. Beta for the stock currently stands at 1.38.

Top 5 Undervalued Stocks To Own In 2023

Microchip Maker Releases "World's Most Powerful Data Center CPU". It could allow the company who manufactures it to lead the industry as the global microchip shortage continues into the coming year. We've put together a free research report that explains all the details. Not only will you find out why analysts believe this chip manufacturer could lead the pack, you will also discover four more potential winners for the coming year.

Click here to download your Free Research Report…


Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of CDTX was down-trending over the past week, with a drop of -29.69%, but this was up by 94.94% over a month. Three-month performance surged to 62.51% while six-month performance rose 34.55%. The stock gained 7.79% in the past year, while it has gained 22.72% so far this year. A look at the trailing 12-month EPS for CDTX yields -0.53 with Next year EPS estimates of -0.23. For the next quarter, that number is -0.15. This implies an EPS growth rate of 55.10% for this year and 33.30% for next year.

Float and Shares Shorts:

At present, 70.22 million CDTX shares are outstanding with a float of 63.36 million shares on hand for trading. On Oct 13, 2022, short shares totaled 0.41 million, which was 0.58% higher than short shares on Sep 14, 2022. In addition to Dr. Jeffrey L. Stein Ph.D. as the firm’s Pres, CEO & Exec. Director, Dr. Taylor Sandison serves as its Chief Medical Officer.

Institutional Ownership:

Through their ownership of 40.57% of CDTX’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 7.67% of CDTX, in contrast to 31.59% held by mutual funds. Shares owned by individuals account for 21.74%. As the largest shareholder in CDTX with 9.58% of the stake, BVF Partners LP holds 6,861,127 shares worth 6,861,127. A second-largest stockholder of CDTX, Nantahala Capital Management LLC, holds 4,559,201 shares, controlling over 6.37% of the firm’s shares. Point72 Asset Management LP is the third largest shareholder in CDTX, holding 3,868,006 shares or 5.40% stake. With a 2.51% stake in CDTX, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 1,796,543 shares are owned by the mutual fund manager. The FCP Medical – BioHealth, which owns about 1.88% of CDTX stock, is the second-largest Mutual Fund holder. It holds 1,342,701 shares valued at 1.02 million. APO Medical Opportunities holds 0.82% of the stake in CDTX, owning 583,466 shares worth 0.44 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for CDTX since 3 analysts follow the stock currently. There are 2 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 0 believe that the stock is worth HOLDING, 1 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With CDTX analysts setting a high price target of $6.00 and a low target of $3.00, the average target price over the next 12 months is $4.67. Based on these targets, CDTX could surge 545.16% to reach the target high and rise by 222.58% to reach the target low. Reaching the average price target will result in a growth of 402.15% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. CDTX will report FY 2022 earnings on 03/05/2024. Analysts have provided yearly estimates in a range of -$0.29 being high and -$0.52 being low. For CDTX, this leads to a yearly average estimate of -$0.42. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Cidara Therapeutics Inc. surprised analysts by $0.18 when it reported $0.17 EPS against a consensus estimate of -$0.01. The surprise factor in the prior quarter was $0.09. Based on analyst estimates, the high estimate for the next quarter is -$0.01 and the low estimate is -$0.23. The average estimate for the next quarter is thus -$0.15.

Summary of Insider Activity:

Insiders traded CDTX stock several times over the past three months with 0 Buys and 0 Sells. In these transactions, 0 shares were bought while 0 shares were sold. The number of buy transactions has increased to 11 while that of sell transactions has risen to 9 over the past year. The total number of shares bought during that period was 1,007,520 while 259,004 shares were sold.

Leave a Comment

Your email address will not be published. Required fields are marked *