Perhaps timely catching Reata Pharmaceuticals Inc. (RETA) would be a good idea

Reata Pharmaceuticals Inc. (NASDAQ: RETA) stock fell -0.25% on Tuesday to $79.22 against a previous-day closing price of $79.42. With 0.72 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.45 million shares. During the session, the Biotechnology company that operates in wider Healthcare sector, reached to the highest price of $80.91 whereas the lowest price it dropped to was $78.40. The 52-week range on RETA shows that it touched its highest point at $106.69 and its lowest point at $18.47 during that stretch. It currently has a 1-year price target of $112.70. Beta for the stock currently stands at 1.54.

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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 RETA was down-trending over the past week, with a drop of -6.82%, but this was down by -20.53% over a month. Three-month performance surged to 74.38% while six-month performance rose 108.80%. The stock gained 175.26% in the past year, while it has gained 108.53% so far this year. A look at the trailing 12-month EPS for RETA yields -9.65 with Next year EPS estimates of -4.33. For the next quarter, that number is -2.85. This implies an EPS growth rate of -4.30% for this year and 57.90% for next year.

Float and Shares Shorts:

At present, 36.95 million RETA shares are outstanding with a float of 30.57 million shares on hand for trading. On Apr 27, 2023, short shares totaled 4.79 million, which was 12.77% higher than short shares on Mar 30, 2023. In addition to Mr. J. Warren Huff as the firm’s Chairman & CEO, Mr. Manmeet Singh Soni serves as its COO, CFO & Pres.

Institutional Ownership:

Through their ownership of 101.73% of RETA’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 62.27% of RETA, in contrast to 28.34% held by mutual funds. Shares owned by individuals account for 24.59%. As the largest shareholder in RETA with 9.44% of the stake, CPMG, Inc. holds 3,030,350 shares worth 3,030,350. A second-largest stockholder of RETA, The Vanguard Group, Inc., holds 2,637,422 shares, controlling over 8.22% of the firm’s shares. Perceptive Advisors LLC is the third largest shareholder in RETA, holding 2,083,799 shares or 6.49% stake. With a 3.85% stake in RETA, the Vanguard Health Care Fund is the largest stakeholder. A total of 1,237,211 shares are owned by the mutual fund manager. The Vanguard Total Stock Market ETF, which owns about 2.60% of RETA stock, is the second-largest Mutual Fund holder. It holds 833,312 shares valued at 82.38 million. Vanguard Small Cap Index Fund holds 2.20% of the stake in RETA, owning 705,781 shares worth 69.77 million.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Mar 30, 2023, RETA reported revenue of $762.00k and operating income of -$63.98M. The EBITDA in the recently reported quarter was -$63.71M and diluted EPS was -$2.02.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for RETA since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With RETA analysts setting a high price target of $179.00 and a low target of $80.00, the average target price over the next 12 months is $112.70. Based on these targets, RETA could surge 125.95% to reach the target high and rise by 0.98% to reach the target low. Reaching the average price target will result in a growth of 42.26% 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.

Summary of Insider Activity:

Insiders traded RETA stock several times over the past three months with 11 Buys and 41 Sells. In these transactions, 317,376 shares were bought while 344,168 shares were sold. The number of buy transactions has increased to 29 while that of sell transactions has risen to 41 over the past year. The total number of shares bought during that period was 500,817 while 344,168 shares were sold.

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