In the rollercoaster ride that is the stock market, every dip can be a golden opportunity. Precigen, a NASDAQ-listed biotechnology company in the healthcare sector, recently saw its shares decline by over 2%. This drop, however, might be the perfect buying opportunity for discerning investors. Despite the company's net income showing a loss of $85M and an operating income loss of $87.3M, Precigen boasts a strong current ratio of 5.51X, indicating a robust ability to cover its short-term liabilities. With a forward PE of 9.14, the stock's valuation seems attractive compared to many of its peers. Moreover, Precigen's book value per share stands at 0.58X, with a price to book ratio of 2.41X, suggesting that the company is undervalued. The company's total assets amount to $215.98M, including current assets of $285.72M, which further underpins its financial stability. The fact that 64.21% of Precigen's shares are owned by institutions is a testament to its potential. Therefore, despite the recent dip, Precigen's financial
fundamentals point to a potential buying opportunity. For those interested in the biotechnology sector, it's worth taking a closer look at Precigen. We'll assess whether its recent price fluctuations suggest an April rebound. Is Precigen's valuation sustainable? I'll provide an analysis of Precigen's valuation to better inform your investment decision.
We determine the current worth of Precigen using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Precigen based exclusively on its
fundamental and basic
technical indicators. By analyzing Precigen's
financials, quarterly and monthly indicators, and related drivers such as
dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of
Precigen's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Precigen. We calculate exposure to Precigen's
market risk, different
technical and
fundamental indicators, relevant financial multiples and ratios, and then
comparing them to Precigen's related companies.
Watch out for price decline
Please consider monitoring Precigen on a daily basis if you are holding a position in it. Precigen is trading at a penny-stock level, and the possibility of delisting is much higher compared to other stocks. However, just because the stock is trading under one dollar, does not mean it will be marked for deletion.
Most exchanges require public instruments, such as Precigen stock to be traded above the $1 level to remain listed. If Precigen stock price falls below $1 for 30 consecutive trading days, the exchange can delist it. Once the company reaches this point, they will be sent an initial price violation notice directly from an exchange.
Precigen Investment Alerts
Precigen investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Precigen performance across your portfolios.Please check all
investment alerts for Precigen
Precigen Valuation Ratios as Compared to Competition
Our valuation model uses many indicators to compare Precigen value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Precigen competition to find
correlations between indicators driving the intrinsic value of Precigen.
Precigen Gross Profit
Precigen Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Precigen previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Precigen Gross Profit growth over the last 10 years. Please check Precigen's
gross profit and other
fundamental indicators for more details.
What is driving Precigen Investor Appetite?
This firm reported the previous year's revenue of 6.76
M. Net Loss for the year was (85.02
M) with profit before overhead, payroll, taxes, and interest of 20.57
M.
Margins Breakdown
Precigen profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Precigen itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Precigen profit margins.
| Pretax Profit Margin | (2.81) |
| Operating Profit Margin | (2.62) |
| Net Profit Margin | (2.8) |
| Gross Profit Margin | 0.66 |
Precigen Short Term Coverage Ratios is increasing over the last 8 years. Precigen Short Term Coverage Ratios is increasing over the last 8 years. The previous year's value of Precigen Short Term Coverage Ratios was -1.38.
As Warren Buffet wisely said, be fearful when others are greedy and greedy when others are fearful. The recent 2% dip in Precigen stock may just be the buying opportunity investors have been waiting for. Despite a negative operating margin of -15.18 and a net income loss of $85M, the company's current valuation stands at $289.59M, with a healthy current asset base of $285.72M. With a book value per share of 0.58X and a target price of $9, the potential upside is a promising 7.96. The company's beta of 1.72 also indicates a higher potential return, although it comes with higher risk. However, with a forward PE of 9.1408, the stock appears undervalued, making it an attractive investment proposition. .
Analysis of Precigen
Our analysis of Precigen reveals a recent mean deviation of 3.6, indicating high price volatility. This could offer short-term trading opportunities but also signifies
increased risk for long-term investors. Therefore, a cautious approach is advised when considering an investment in Precigen. It's essential to thoroughly assess the company's
financial health and market position, in addition to its price volatility. As of March 19th, Precigen's Risk Adjusted Performance is 0.0573, with a coefficient of variation of 1103.03, and Semi Deviation of 4.29. The
technical analysis model allows for an examination of Precigen's existing technical drivers and their interrelationships. This information can help determine if the company's prices will mirror its past market data or revert. We've analyzed nineteen technical drivers for Precigen, which can be compared to its
competitors.
Please review Precigen's information ratio and the relationship between potential upside and kurtosis to determine if the current price of $1.39 per share is accurate. As Precigen is nearing penny stock territory, we advise a close examination of its total risk alpha. Despite the recent 2 percent decline in
Precigen's stock price, the overall
analyst consensus remains a
Strong Buy. With
2 analysts issuing a buy rating and
2 issuing a strong buy rating, there is a clear bullish sentiment. The estimated target price ranges from a low of $
8.65 to a high of $
10.55, significantly higher than the current market value of $1.39. However, investors should also consider the company's real value of $3.36 and hype value of $1.35. In conclusion, despite the short-term decline, Precigen's stock still presents a potentially attractive investment opportunity based on the strong buy consensus and the significant upside potential indicated by the analysts' target price estimates. .
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Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Precigen. Please refer to our
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