Satsuma Pharmaceuticals Inc. (STSA) shares are trading at lower $5.62 and the avg recommendation for the stock is Strong Buy. while the current analyst price target stands at $33.75.
To add more color to this target, the company’s high over the last year is $36.10 and the low is $8.61 while the S&P 500 is up 11.20%. The catalyst for this interesting swing was the company’s recent earnings report.
A Notable Earnings Report
In the last quarter, STSA reported a profit of $94000.0. Satsuma Pharmaceuticals Inc. also saw revenues increase to $11.5 million. In addition, STSA has free cash flow of -$23.5 million as of 06-2020. The company’s EBITDA came in at -$11.41 million which compares well with its peers.
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STSA Return on Equity (ROE) is -39.00%, and its Return on Assets is -35.80%. All told, it is clear that, STSA needs to be on your watchlist.
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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. STSA has a short ratio of 3.10 and outstanding shares of 17.40M.
STSA has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 55540.0 and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at -2.42. Satsuma Pharmaceuticals Inc. STSA also noted assets of $102.61 million at the end of the last quarter. Investors should also keep an eye on sector updates as STSA has historically followed its peers on positive news.
All told, Satsuma Pharmaceuticals Inc. STSA has strung together solid data and demonstrated underlying fundamentals. At its current valuation, STSA 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.
Satsuma Pharmaceuticals Inc. STSA is now commanding a market cap of 97.17M and a float of 12.70M. STSA 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 STSA 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 STSA, either long or short, and we have not been compensated for this article.