Zosano Pharma Corporation (ZSAN) reported gain of 7.38% in market trading today. Recently, the clinical-stage biopharmaceutical firm made an announcement that it will present at the upcoming BTIG Biotechnology Conference 2020.
The President and Chief Executive Officer of Zosano, Steven Lo will present an update on the company’s business at the conference. The presentation will begin at 3:00 pm Eastern Time on Tuesday, August 11 along with a live webcast that will be available on Zosano’s website at www.ir.zosanopharma.com. Moreover, the webcast will be archived for 30 days from the day of the airing of the presentation.
At $1.31 per share, the company is currently around -19.74% down year to date in the stock market. At the time of writing, Zosano Pharma Corporation (ZSAN) has a market cap of $62.95 million. The average transaction volume for ZSAN over the past month (4464764 shares per day) is trailing its average daily volume over the past year by 111.47, which suggests market participants have been more active in this stock of late.
Zosano Pharma Corporation (ZSAN) has been in rally mode, as indicated by the relationship between its 200-day and 20-day major moving averages. That said, over the past 30 days, ZSAN shares have fallen -19.76%. The stock has moved down -54.14 over the trailing 12 months, falling behind the rest of the market by 232.35%. It has also trailed competitors and similar names by -4.33%.
Looking at Key Indicators
Naturally, a cursory survey of superficial price points from the chart don’t say a whole lot about where ZSAN shares could be headed. That’s why we need to dig a little deeper and check out what some of the most important momentum indicators seem to be saying.
The relationship between changes in price and the underlying strength or weakness over periods can point out deeper factors in the pattern that can often generate insights for technical analysts through momentum factors. Two of our favorite oscillating indicators are the Relative Strength Index (RSI) and the Stochastic %k Oscillator. In each case, the scoring is on a scale somewhere between 0 and 100, and in case, the levels to watch are “70” and “30”, with the former representing an “overbought” state and the latter presenting an “oversold” state.
With that in mind, here is a look at ZSAN shares from this perspective. The 20-day RSI reading for ZSAN is currently 78.07, which indicates that may be primed for a trend reversal or a corrective pullback in price. If we look at the 20-day Stochastic %k measure, we find it at 92.00, which represents another indication of a overbought outlook.
Listening to the Analysts
Right now, ZSAN shares appear to be trading -69.75% under the average price target for one year ahead from Wall Street analysts, which is at $4.33. On average, Street analysts put their recommendation at 1.70, which is scored on a scale from 1 to 5, with 1 representing a “Strong Buy” and 5 representing a “Strong Sell”.
That suggests analysts are bullish on ZSAN looking ahead over the coming 12 months.
Assessing the Risk
Risk is an essential factor in comprehensive investment analysis. One of the key factors that analysts consider in determining the systemic risk involved in a stock is called “beta”, which represents an individual stock’s volatility relative to the volatility demonstrated by stocks as an asset class, in general, as a function of broad market data.
ZSAN, for example, trades right now with a beta of 2.69. The rest of the market is normalized to a beta score of 1.0, which means ZSAN is more volatile than the average stock. By the same token, ZSAN should be seen as somewhat more risky for market participants than the average stock.
We would also note that ZSAN has posted average daily volatility over the past two weeks of 92.53%, or -14.49% more than it has scored on the same measure over the past hundred days.
The Fundamentals in Focus
As we now turn to the fundamental picture, we begin by analyzing it the way one might analyze a building: by starting with the foundation – the balance sheet. Without a strong foundation, the rest of the structure can’t stand.
For ZSAN, cash levels are currently sitting at 18.56 million. That figure is balanced by 20.61 million in current liabilities. But that has to be put in context. The company’s debt levels have been growing. To further round out the picture, total assets are at 55.34 million and total liabilities sit at 31.36 million, granting a pretty thorough ground-up sense of the company and how it might withstand challenges ahead, should they appear.
In terms of recent free cash flow, ZSAN, is currently reporting -9.83 million, which represents a quarterly net change of 12.24 million in cash flowing in the door. In terms of operations, the company reported -8.44 million in net operating cash flow.
Looking at the revenue path, we saw last quarter’s top-line number come in at 8.6 million in total revenues, which represents a y/y quarterly change of 9.39.
That brings us to the real meat of the matter: the bottom line. Zosano Pharma Corporation (ZSAN) yielded a gross basic income of 0.21 million, which comes on a Cost-of-Goods-Sold number registering at -8.6 million, seated in 36.27 billion total diluted outstanding shares, adding up to earnings per share of -1.82. Notably, the consensus view of analysts looking ahead to next quarter is currently at -0.13.
That allows us to round out this picture with a look at valuations. Based on this data, and the forecasts we have at hand, the coming fiscal year looks to be headed toward -0.2 in total earnings per share.
However, estimates are only guesses about the future. Both business and investment trends are more important to take into consideration.