DURECT Corporation (NASDAQ:DRRX) shares traded lower over the last trading session, losing -1.79% on 05/28/21. The shares fell to a low of $1.64 before closing at $1.65. Intraday shares traded counted 0.49 million, which was 50.7% higher than its 30-day average trading volume of 1.00M. DRRX’s previous close was $1.68 while the outstanding shares total 217.54M. The firm has a beta of 1.40. The stock’s Relative Strength Index (RSI) is 41.25, with weekly volatility at 4.67% and ATR at 0.07. The DRRX stock’s 52-week price range has touched low of $1.52 and a $2.95 high.
Investors have identified the Drug Manufacturers – Specialty & Generic company DURECT Corporation 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 $382.01 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.
DURECT Corporation (DRRX) 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. For DRRX, the company has in raw cash 57.55 million on their books with 2.9 million currently as liabilities. How the trend is over time is what investors should be concerned about. The company has a healthy balance sheet as their debt profile has been on an incline. In terms of their assets, the company currently has 104.81 million total, with 11.7 million as their total liabilities.
DRRX were able to record -10.71 million as free cash flow during the 08/04/2021 quarter of the year, this saw their quarterly net cash flow reduce by 36.23 million. In cash movements, the company had a total of -10.71 million as operating cash flow.
Potential earnings growth for DURECT Corporation (DRRX)
In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 08/04/2021 quarter of the year, DURECT Corporation recorded a total of 2.21 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with 27.89% coming in sequential stages and their sales for the 08/04/2021 quarter increasing by 0.23%.
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 0.35 million trying to sell their products during the last quarter, with the result yielding a gross income of 1.86 million. This allows shareholders to hold on to 217.54M with the recently reported earning now reading -0.05 cents per share. This is a figure that compared to analyst’s prediction for their 08/04/2021 (-0.05 cents a share).
Having a look at the company’s valuation, the company is expected to record -0.16 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 DRRX sounds very interesting.
Is the stock of DRRX attractive?
In related news, Sr. VP Operations & Corp QA, Joice Judy R sold 60,137 shares of the company’s stock in a transaction that recorded on May 14. The sale was performed at an average price of 1.72, for a total value of 103,682. As the sale deal closes, the 10% Owner, Bleichroeder LP now sold 250,000 shares of the company’s stock, valued at 420,000. Also, Sr. VP Operations & Corp QA, Joice Judy R sold 57,820 shares of the company’s stock in a deal that was recorded on Jun 03. The shares were price at an average price of 2.45 per share, with a total market value of 141,763. In the last 6 months, insiders have changed their ownership in shares of company stock by 1.43%.