RedHill Biopharma Ltd. (NASDAQ:RDHL) Stock is Plummeting, Here is Why

RedHill Biopharma Ltd. (NASDAQ:RDHL) Stock is Plummeting, Here is Why


The RedHill Biopharma Ltd. (RDHL) shares are trading at lower $7.02 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 $9.12 and the low is $3.26. Over the last 52 weeks, RDHL is down -23.03% while the S&P 500 is up 1.47%. The catalyst for this interesting swing was the company’s recent earnings report.

A Notable Earnings Report

In the last quarter, RDHL reported a profit of $-0.66 million. RedHill Biopharma Ltd. also saw revenues decrease to $1.06 million. In addition, RDHL has free cash flow of -$10.87 million as of 03-2020 The company’s EBITDA came in at -$16.41 million which compares well with its peers.

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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. RDHL has a short ratio of 3.65 and outstanding shares of 35.27M.

Company Outlook

RDHL has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 0.24 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at -1.58. RedHill Biopharma Ltd. RDHL also noted assets of $143.48 million at the end of the last quarter. Investors should also keep an eye on sector updates as RDHL has historically followed its peers on positive news.

All told, RedHill Biopharma Ltd. RDHL has strung together solid data and demonstrated underlying fundamentals. At its current valuation, RDHL 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.

RedHill Biopharma Ltd. RDHL is now commanding a market cap of 247.59M and a float of 20.84M. RDHL 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 RDHL 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 RDHL, either long or short, and we have not been compensated for this article.