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The Futility of Lipocine Inc. (NASDAQ:LPCN)’s Fundamentals

Lipocine Inc. (NASDAQ:LPCN) shares fell to a low of $1.15 before closing at $1.23. Intraday shares traded counted 1.45 million, which was 37.23% higher than its 30-day average trading volume of 2.31M. LPCN’s previous close was $1.17 while the outstanding shares total 88.29M. The firm has a beta of 0.44. The stock’s Relative Strength Index (RSI) is 40.78, with weekly volatility at 6.27% and ATR at 0.09. The LPCN stock’s 52-week price range has touched low of $0.82 and a $2.42 high. The stock traded higher over the last trading session, gaining 5.13% on 06/04/21.

Investors have identified the Biotechnology company Lipocine 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 $103.30 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.

Lipocine Inc. (LPCN) 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 LPCN, the company has in raw cash 15.6 million on their books with 3.33 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 45.94 million total, with 5.4 million as their total liabilities.

Potential earnings growth for Lipocine Inc. (LPCN)

In order to determine the future investment potential for this stock, we will have to analyze key trends that affect it. During the 08/10/2021 quarter of the year, Lipocine Inc. recorded a total of 3.12 million in revenue. This figure implies that they witnessed a quarterly year/year change in their earnings with -47.58% coming in sequential stages and their sales for the 08/10/2021 quarter reducing by -54.16%.

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 -3.12 million trying to sell their products during the last quarter, with the result yielding a gross income of 69000.0. This allows shareholders to hold on to 88.29M with the recently reported earning now reading -0.04 cents per share. This is a figure that compared to analyst’s prediction for their 08/10/2021 (-0.04 cents a share).

Having a look at the company’s valuation, the company is expected to record 0.27 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 LPCN sounds very interesting.

Is the stock of LPCN attractive?

In related news, Director, Higuchi John W. sold 6,700 shares of the company’s stock in a transaction that recorded on Dec 31. The sale was performed at an average price of 1.35, for a total value of 9,054. As the sale deal closes, the Chief Executive Officer, Patel Mahesh V. now sold 15,000 shares of the company’s stock, valued at 20,250. Also, EVP and CFO, BROWN MORGAN R sold 8,437 shares of the company’s stock in a deal that was recorded on Dec 16. The shares were price at an average price of 1.35 per share, with a total market value of 11,390. Following this completion of acquisition, the Chief Executive Officer, Patel Mahesh V. now holds 43,500 shares of the company’s stock, valued at 68,134. In the last 6 months, insiders have changed their ownership in shares of company stock by 2.40%.

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