Verona Pharma Plc Stock Buy Hold or Sell Recommendation
| VRNA Stock | USD 38.81 0.95 2.51% |
Given the investment horizon of 90 days and complete risk avoidance on your part, our recommendation regarding Verona Pharma PLC is 'Strong Sell'. Macroaxis provides Verona Pharma buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding VRNA positions.
Check out Verona Pharma Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. In addition, we conduct extensive research on individual companies such as Verona and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards Verona Pharma PLC. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in board of governors.
Verona |
Execute Verona Pharma Buy or Sell Advice
The Verona recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Verona Pharma PLC. Macroaxis does not own or have any residual interests in Verona Pharma PLC or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Verona Pharma's advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Strong Sell
Market Performance | Good | Details | |
Volatility | Very steady | Details | |
Hype Condition | Under hyped | Details | |
Current Valuation | Fairly Valued | Details | |
Odds Of Distress | Low | Details | |
Economic Sensitivity | Slowly supersedes the market | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Strong Buy | Details | |
Financial Strenth (F Score) | Frail | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Verona Pharma Trading Alerts and Improvement Suggestions
| Verona Pharma PLC appears to be risky and price may revert if volatility continues | |
| The company reported the previous year's revenue of 458 K. Net Loss for the year was (54.58 M) with profit before overhead, payroll, taxes, and interest of 112 K. | |
| Verona Pharma PLC currently holds about 111.51 M in cash with (50.22 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 1.83. | |
| Verona Pharma PLC has a frail financial position based on the latest SEC disclosures | |
| Over 89.0% of the company outstanding shares are owned by institutional investors | |
| Latest headline from gurufocus.com: Verona Pharma Announces December 2024 Investor Conference Participation |
Verona Pharma Returns Distribution Density
The distribution of Verona Pharma's historical returns is an attempt to chart the uncertainty of Verona Pharma's future price movements. The chart of the probability distribution of Verona Pharma daily returns describes the distribution of returns around its average expected value. We use Verona Pharma PLC price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Verona Pharma returns is essential to provide solid investment advice for Verona Pharma.
| Mean Return | 0.59 | Value At Risk | -3.34 | Potential Upside | 7.31 | Standard Deviation | 2.97 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Verona Pharma historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.
Verona Stock Institutional Investors
| Shares | Jennison Associates Llc | 2024-09-30 | 1.7 M | Morgan Stanley - Brokerage Accounts | 2024-06-30 | 1.7 M | Wellington Management Company Llp | 2024-06-30 | 1.6 M | Hood River Capital Management Llc | 2024-09-30 | 1.4 M | Bellevue Group Ag | 2024-09-30 | 1.2 M | Citadel Advisors Llc | 2024-09-30 | 1.2 M | Aisling Capital Management Lp | 2024-09-30 | 1.1 M | Hhg Plc | 2024-06-30 | 1.1 M | Rice Hall James & Associates, Llc | 2024-09-30 | 985.1 K | Perceptive Advisors Llc | 2024-09-30 | 6.3 M | Nea Management Company, Llc | 2024-06-30 | 5.6 M |
Verona Pharma Cash Flow Accounts
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Change In Cash | 4.1M | 157.6M | (39.6M) | 79.4M | 43.9M | 46.1M | |
| Free Cash Flow | (44.7M) | (45.2M) | (33.3M) | (59.9M) | (50.2M) | (47.7M) | |
| Other Non Cash Items | (2.5M) | 18K | 239K | 4.8M | (332.4K) | (349.0K) | |
| Capital Expenditures | 369.7K | 82K | 12K | 29K | 4.07 | 3.87 | |
| Net Income | (51.4M) | (65.1M) | (55.6M) | (68.7M) | (54.6M) | (51.9M) | |
| End Period Cash Flow | 30.1M | 188.0M | 148.4M | 227.8M | 271.8M | 285.4M | |
| Depreciation | 660.8K | 623K | 629K | 636K | 116K | 212.0K | |
| Change To Netincome | 1.5M | 21.6M | 8.1M | 18.9M | 21.7M | 22.8M | |
| Change To Inventory | 4.2M | (774.0K) | 6.9M | (4.0M) | 1.0 | 0.95 | |
| Investments | 5.3M | 37.8M | 9.7M | (12K) | (29K) | 0.0 |
Verona Pharma Greeks
Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Verona Pharma or Pharmaceuticals sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Verona Pharma's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Verona stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α | Alpha over Dow Jones | 0.55 | |
β | Beta against Dow Jones | 0.27 | |
σ | Overall volatility | 3.01 | |
Ir | Information ratio | 0.15 |
Verona Pharma Volatility Alert
Verona Pharma PLC currently demonstrates below-average downside deviation. It has Information Ratio of 0.15 and Jensen Alpha of 0.55. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Verona Pharma's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Verona Pharma's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.Verona Pharma Fundamentals Vs Peers
Comparing Verona Pharma's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Verona Pharma's direct or indirect competition across all of the common fundamentals between Verona Pharma and the related equities. This way, we can detect undervalued stocks with similar characteristics as Verona Pharma or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Verona Pharma's fundamental indicators could also be used in its relative valuation, which is a method of valuing Verona Pharma by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Verona Pharma to competition |
| Fundamentals | Verona Pharma | Peer Average |
| Return On Equity | -0.78 | -0.31 |
| Return On Asset | -0.28 | -0.14 |
| Operating Margin | (6.94) % | (5.51) % |
| Current Valuation | 2.96 B | 16.62 B |
| Shares Outstanding | 81.83 M | 571.82 M |
| Shares Owned By Insiders | 4.13 % | 10.09 % |
| Shares Owned By Institutions | 89.40 % | 39.21 % |
| Number Of Shares Shorted | 7.52 M | 4.71 M |
| Price To Earning | (9.15) X | 28.72 X |
| Price To Book | 24.34 X | 9.51 X |
| Price To Sales | 564.70 X | 11.42 X |
| Revenue | 458 K | 9.43 B |
| Gross Profit | 112 K | 27.38 B |
| EBITDA | (52.47 M) | 3.9 B |
| Net Income | (54.58 M) | 570.98 M |
| Cash And Equivalents | 111.51 M | 2.7 B |
| Cash Per Share | 1.83 X | 5.01 X |
| Total Debt | 51.33 M | 5.32 B |
| Debt To Equity | 0.05 % | 48.70 % |
| Current Ratio | 3.57 X | 2.16 X |
| Book Value Per Share | 1.59 X | 1.93 K |
| Cash Flow From Operations | (50.22 M) | 971.22 M |
| Short Ratio | 8.04 X | 4.00 X |
| Earnings Per Share | (2.00) X | 3.12 X |
| Target Price | 46.57 | |
| Number Of Employees | 79 | 18.84 K |
| Beta | 0.42 | -0.15 |
| Market Capitalization | 3.18 B | 19.03 B |
| Total Asset | 308.12 M | 29.47 B |
| Retained Earnings | (388.43 M) | 9.33 B |
| Working Capital | 281.02 M | 1.48 B |
| Net Asset | 308.12 M |
Note: Disposition of 2400 shares by Mark Hahn of Verona Pharma at 5.0 subject to Rule 16b-3 [view details]
Verona Pharma Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Verona . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.
About Verona Pharma Buy or Sell Advice
When is the right time to buy or sell Verona Pharma PLC? Buying financial instruments such as Verona Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
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Check out Verona Pharma Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. You can also try the Portfolio Diagnostics module to use generated alerts and portfolio events aggregator to diagnose current holdings.
Is Pharmaceuticals space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Verona Pharma. If investors know Verona will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Verona Pharma listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (2.00) | Revenue Per Share 0.07 | Return On Assets (0.28) | Return On Equity (0.78) |
The market value of Verona Pharma PLC is measured differently than its book value, which is the value of Verona that is recorded on the company's balance sheet. Investors also form their own opinion of Verona Pharma's value that differs from its market value or its book value, called intrinsic value, which is Verona Pharma's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Verona Pharma's market value can be influenced by many factors that don't directly affect Verona Pharma's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Verona Pharma's value and its price as these two are different measures arrived at by different means. Investors typically determine if Verona Pharma is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Verona Pharma's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.