OPKO Health Inc. (OPK) reported loss of -9.09% in market trading today. The company report on October 9, 2020 that OPKO Health’s BioReference Laboratories Launches COVID-19 Testing Program for New York City Schools. At $4.20 per share, the company is currently around 214.29% up year to date in the stock market. At the time of writing, OPKO Health Inc. (OPK) has a market cap of $3.06 billion. The average transaction volume for OPK over the past month (9854694 shares per day) is trailing its average daily volume over the past year by -31.29, which suggests market participants have been less active in this stock of late.
OPKO Health Inc. (OPK) 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, OPK shares have risen 25.0%. The stock has moved up 125.92 over the trailing 12 months, gaining behind the rest of the market by 588.84%. It has also trailed competitors and similar names by -35.94%.
Looking at Key Indicators
Naturally, a cursory survey of superficial price points from the chart don’t say a whole lot about where OPK 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 OPK shares from this perspective. The 20-day RSI reading for OPK is currently 55.37, which indicates that is not particularly expensive or cheap, and not predisposed to a reactive price movement based on this measure. If we look at the 20-day Stochastic %k measure, we find it at 85.65, which represents another indication of a overbought outlook.
Listening to the Analysts
Right now, OPK shares appear to be trading -47.5% under the average price target for one year ahead from Wall Street analysts, which is at $8.00. On average, Street analysts put their recommendation at 1.80, 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 OPK 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.
OPK, for example, trades right now with a beta of 1.95. The rest of the market is normalized to a beta score of 1.0, which means OPK is more volatile than the average stock. By the same token, OPK should be seen as somewhat more risky for market participants than the average stock.
We would also note that OPK has posted average daily volatility over the past two weeks of 76.20%, or 18.51% less 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 OPK, cash levels are currently sitting at 21.61 million. That figure is balanced by 279.54 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 2.32 billion and total liabilities sit at 735.39 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, OPK, is currently reporting -74.94 million, which represents a quarterly net change of -63.84 million in cash flowing in the door. In terms of operations, the company reported -57.79 million in net operating cash flow.
Looking at the revenue path, we saw last quarter’s top-line number come in at 301.21 million in total revenues, which represents a y/y quarterly change of -33.06, and a sequential quarterly sales grow of 33.00%.
That brings us to the real meat of the matter: the bottom line. OPKO Health Inc. (OPK) yielded a gross basic income of 138.56 million, which comes on a Cost-of-Goods-Sold number registering at 162.65 million, seated in 640.58 billion total diluted outstanding shares, adding up to earnings per share of -0.33. Notably, the consensus view of analysts looking ahead to next quarter is currently at 0.05.
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 0.21 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.