Reata Pharma currently holds roughly 578.26
M in cash with (426.58
M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 17.07.
The company holds a Beta of 0.1463, which implies not very significant fluctuations relative to the market. Let's try to break down what Reata's beta means in this case. As returns on the market increase, Reata Pharma returns are expected to increase less than the market. However, during the bear market, the loss on holding Reata Pharma will be expected to be smaller as well. Even though it is essential to pay attention to
Reata Pharma current trending patterns, it is always good to be careful when utilizing equity existing
price patterns. Our philosophy towards forecasting any stock's
future performance is to check both, its past performance charts as well as the business as a whole, including all available
technical indicators. Reata Pharma exposes twenty-one different technical indicators, which can help you to evaluate its performance.
Reata Pharma has an expected return of -0.28%. Please be advised to check Reata Pharma
treynor ratio, and the
relationship between the
standard deviation and
downside variance to decide if
Reata Pharma stock performance from the past will be repeated at some point in the near future.
Investing in Reata Pharmaceuticals, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Reata Pharmaceuticals along with other instruments in the same portfolio. Using conventional
technical analysis and
fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed
many market ups and downs, anticipate that the market will even out over time. This tendency of Reata Pharmaceuticals' price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy.
How important is Reata Pharmaceuticals's Liquidity
Reata Pharmaceuticals
financial leverage refers to using borrowed capital as a funding source to finance Reata Pharmaceuticals ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Reata Pharmaceuticals financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Reata Pharmaceuticals' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Reata Pharmaceuticals' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Reata Pharmaceuticals's total debt and its cash.
Reata Pharmaceuticals Correlation with Peers
Investors in Reata can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Reata Pharmaceuticals. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Reata Pharmaceuticals and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Reata is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with
your current brokerage. Please check
volatility of Reata for more details
Detailed Perspective On Reata Pharmaceuticals
Reata Pharma maintains Sharpe Ratio (i.e. Efficiency) of -0.0742, which implies the firm had -0.0742% of return per unit of risk over the last month. Macroaxis standpoint towards forecasting the risk of any stock is to look at both systematic and unsystematic factors of the business, including all available market data and
technical indicators. Reata Pharma exposes twenty-one different
technical indicators, which can help you to evaluate volatility that cannot be
diversified away. Please be advised to check Reata Pharma
risk adjusted performance of
(0.06), and Coefficient Of Variation of
(1,060) to confirm the risk estimate we provide.
Reata Pharma is epected to finish above $120 in April
The skewness is down to -0.17 as of today.
As of the 1st of March, Reata Pharma holds the
risk adjusted performance of
(0.06), and Coefficient Of Variation of
(1,060). Compared to
fundamental indicators, the
technical analysis model allows you to check existing technical drivers of Reata Pharma, as well as the relationship between them. Put it differently, you can use this information to find out if the company will indeed mirror its model of past market data, or the prices will eventually revert. We were able to analyze nineteen
technical drivers for Reata Pharma, which can be compared to its competitors. Please check
Reata Pharma treynor ratio, and the
relationship between the
standard deviation and
downside variance to decide if Reata Pharma is priced some-what accurately, providing market reflects its current price of 122.26 per share. Given that Reata Pharma has
jensen alpha of
(0.38), we recommend you to check out Reata Pharma's recent market performance to make sure the company can sustain itself at a future point.
Our Final Take On Reata Pharma
Whereas some other companies in the biotechnology industry are either recovering or due for a correction, Reata may not be as strong as the others in terms of longer-term growth potentials. To conclude, as of the 1st of March 2021, our concluding 30 days buy-hold-sell recommendation on the company is
Hold. We believe Reata Pharma is
undervalued with
close to average probability of distress for the next two years.
Building efficient market-beating portfolios requires time, education, and a lot of computing power!
The Portfolio Architect is an AI-driven system that provides multiple benefits to our users by leveraging cutting-edge machine learning algorithms, statistical analysis, and predictive modeling to automate the process of asset selection and portfolio construction, saving time and reducing human error for individual and institutional investors.
Try AI Portfolio ArchitectEditorial Staff
Ellen Johnson is a Member of Macroaxis Editorial Board. Ellen covers public companies in North America, focusing primarily on valuation and volatility. Six years of experience in 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 Ellen Johnson do not own shares of Reata Pharmaceuticals. Please refer to our
Terms of Use for any information regarding our disclosure principles.
Would you like to provide feedback on the content of this article?
You can get in touch with us directly or send us a quick note via email to
editors@macroaxis.com