Is Now the Time to Invest in Calithera Biosciences Inc. (NASDAQ:CALA)?

Is Now the Time to Invest in Calithera Biosciences Inc. (NASDAQ:CALA)?


The Calithera Biosciences Inc. (CALA) shares are trading at higher $5.58 and the avg recommendation for the stock is Strong Buy.

To add more color to this target, the company’s high over the last year is $8.18 and the low is $2.45. Over the last 52 weeks, CALA is down -31.78% while the S&P 500 is down -2.55%. The catalyst for this interesting swing was the company’s recent earnings report.

A Notable Earnings Report

In the last quarter, CALA reported a profit of $0.63 million. Calithera Biosciences Inc. also saw revenues increase to $25.07 million. In addition, CALA has free cash flow of -$27.03 million as of 03-2020 The company’s EBITDA came in at -$25.05 million which compares well with its peers.

CALA Return on Equity (ROE) is -68.40%, and its Return on Assets is -57.40%. All told, it is clear that, CALA needs to be on your watchlist.

Find out when CALA reaches critical levels. Subscribe to Right Now by entering your Email in the box below.

Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. CALA has a short ratio of 1.65 and outstanding shares of 64.56M.

Company Outlook

CALA has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 0.56 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at -1.74. Calithera Biosciences Inc. CALA also noted assets of $149.68 million at the end of the last quarter. Investors should also keep an eye on sector updates as CALA has historically followed its peers on positive news.

All told, Calithera Biosciences Inc. CALA has strung together solid data and demonstrated underlying fundamentals. At its current valuation, CALA represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.

Calithera Biosciences Inc. CALA is now commanding a market cap of 382.56M and a float of 62.69M. CALA is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of CALA stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: we hold no position in CALA, either long or short, and we have not been compensated for this article.