NovaBay Pharmaceuticals Inc. (AMEX:NBY): A Fundamentally Weighted Stock for Long-Term Investors

NovaBay Pharmaceuticals Inc. (AMEX:NBY) shares traded higher over the last trading session, gaining 5.03% on 12/08/20. The shares fell to a low of $0.65 before closing at $0.70. Intraday shares traded counted 8.84 million, which was -675.36% lower than its 30-day average trading volume of 1.14M. NBY’s previous close was $0.67 while the outstanding shares total 40.04M. The firm has a beta of 3.53. The stock’s Relative Strength Index (RSI) is 61.52, with weekly volatility at 8.76% and ATR at 0.05. The NBY stock’s 52-week price range has touched low of $0.24 and a $1.94 high.

Investors have identified the Biotechnology company NovaBay Pharmaceuticals Inc. as an interesting stock but before investments are made there, an in-depth look at its trading activities will have to be conducted. The share is trading with a market value of around $28.53 million, the company now has both obstacles and catalysts that affect them and they came from their mode of operations. With the company affected by events currently, it is a perfect time to analyze the numbers behind the firm in order to come up with a rather realistic picture of what this stock is.

NovaBay Pharmaceuticals Inc. (NBY) Fundamentals that are to be considered.

When analyzing a stock, the first fundamental thing to take into account is the balance sheet. How healthy the balance sheet of a company is will determine if the company will be able to carry out all its financial and non-financial obligations and also keep the faith of its investors. In terms of their assets, the company currently has 16.01 million total, with 3.0 million as their total liabilities.

NBY were able to record -3.28 million as free cash flow during the Q3 2020 quarter of the year, this saw their quarterly net cash flow reduce by 6.48 million. In cash movements, the company had a total of -3.28 million as operating cash flow.

Potential earnings growth for NovaBay Pharmaceuticals Inc. (NBY)

In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the Q3 2020 quarter of the year, NovaBay Pharmaceuticals Inc. recorded a total of 2.17 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 25.58% coming in sequential stages and their sales for the Q3 2020 quarter reducing by -83.59%.

What matters though is how it ends. When the core data for the company is broken down, then the stock sounds interesting. The company spent 0.54 million trying to sell their products during the last quarter, with the result yielding a gross income of 1.63 million. This allows shareholders to hold on to 40.04M with the recently reported earning now reading -0.08 cents per share. This is a figure that compared to analyst’s prediction for their Q3 2020 (-0.08 cents a share).

Having a look at the company’s valuation, the company is expected to record -0.09 total earnings per share during the next fiscal year. It is very important though to remember that the importance of trend far outweighs that of outlook. This analysis has been great and getting further updates on NBY sounds very interesting.

Is the stock of NBY attractive?

In related news, Director, WU MIJIA sold 20,000 shares of the company’s stock in a transaction that recorded on Aug 17. The sale was performed at an average price of 1.35, for a total value of 27,000. As the sale deal closes, the 10% Owner, Fu Jian Ping now sold 1,302,350 shares of the company’s stock, valued at 1,601,891. In the last 6 months, insiders have changed their ownership in shares of company stock by 9.60%.

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