Kala Pharmaceuticals Stock Buy Hold or Sell Recommendation
| KALA Stock | USD 6.72 0.14 2.04% |
Given the investment horizon of 90 days and your above-average risk tolerance, our recommendation regarding Kala Pharmaceuticals is 'Sell'. Macroaxis provides Kala Pharmaceuticals buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding KALA positions.
Check out Kala Pharmaceuticals 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. For information on how to trade Kala Stock refer to our How to Trade Kala Stock guide. In addition, we conduct extensive research on individual companies such as Kala and provide practical buy, sell, or hold advice based on investors' investing horizon and their risk tolerance towards Kala Pharmaceuticals. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in bureau of economic analysis.
Kala |
Execute Kala Pharmaceuticals Buy or Sell Advice
The Kala recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Kala Pharmaceuticals. Macroaxis does not own or have any residual interests in Kala Pharmaceuticals or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Kala Pharmaceuticals' advice using the current market data and latest reported fundamentals.
Time Horizon
Risk Tolerance
 |  |
Sell
Market Performance | Modest | Details | |
Volatility | Somewhat reliable | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Undervalued | Details | |
Odds Of Distress | High | 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 |
Kala Pharmaceuticals Trading Alerts and Improvement Suggestions
| Kala Pharmaceuticals had very high historical volatility over the last 90 days | |
| Kala Pharmaceuticals has high likelihood to experience some financial distress in the next 2 years | |
| Net Loss for the year was (42.2 M) with profit before overhead, payroll, taxes, and interest of 1.33 M. | |
| Kala Pharmaceuticals currently holds about 44.57 M in cash with (27.93 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 30.44, which can makes it an attractive takeover target, given it will continue generating positive cash flow. | |
| Kala Pharmaceuticals has a frail financial position based on the latest SEC disclosures | |
| Latest headline from gurufocus.com: KALA BIO to Present at Piper Sandler 36th Annual Healthcare Conference |
Kala Pharmaceuticals Returns Distribution Density
The distribution of Kala Pharmaceuticals' historical returns is an attempt to chart the uncertainty of Kala Pharmaceuticals' future price movements. The chart of the probability distribution of Kala Pharmaceuticals daily returns describes the distribution of returns around its average expected value. We use Kala Pharmaceuticals price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Kala Pharmaceuticals returns is essential to provide solid investment advice for Kala Pharmaceuticals.
| Mean Return | 0.28 | Value At Risk | -3.86 | Potential Upside | 6.54 | Standard Deviation | 3.28 |
Return Density |
| Distribution |
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Kala Pharmaceuticals 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.
Kala Stock Institutional Investors
| Shares | Two Sigma Investments Llc | 2024-09-30 | 14 K | Covestor Ltd | 2024-06-30 | 1 K | Morgan Stanley - Brokerage Accounts | 2024-09-30 | 995 | Tower Research Capital Llc | 2024-09-30 | 754 | Compagnie Lombard, Odier Sca | 2024-09-30 | 400 | Citigroup Inc | 2024-09-30 | 296 | Cwm, Llc Duplicate | 2024-09-30 | 200 | Steward Partners Investment Advisory, Llc | 2024-06-30 | 120 | Advisor Group Holdings, Inc. | 2024-06-30 | 107 | Baker Bros Advisors Lp | 2024-09-30 | 891.3 K | Sr One Capital Management, Lp | 2024-09-30 | 443.7 K |
Kala Pharmaceuticals Cash Flow Accounts
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 (projected) | ||
| Change In Cash | (85.1M) | (8.3M) | 5.1M | (24.1M) | (19.9M) | (18.9M) | |
| Net Borrowings | (30K) | (32K) | 2.0M | (40.0M) | (36.0M) | (34.2M) | |
| Depreciation | 843K | 912K | 975K | 537K | 303K | 287.9K | |
| Capital Expenditures | 1.3M | 1.9M | 886K | 313K | 610K | 855.1K | |
| Net Income | (94.3M) | (104.3M) | (142.6M) | (44.8M) | (42.2M) | (44.3M) | |
| End Period Cash Flow | 98.0M | 89.8M | 94.9M | 70.7M | 50.9M | 84.1M | |
| Change To Netincome | 10.0M | 13.3M | 42.5M | (36.5M) | (42.0M) | (39.9M) | |
| Change To Inventory | (4.3M) | (2.4M) | (6.3M) | 1.7M | 7.5M | 7.9M | |
| Free Cash Flow | (94.1M) | (92.6M) | (109.1M) | (79.2M) | (28.5M) | (30.0M) | |
| Other Non Cash Items | 2.7M | 3.0M | 22.5M | (42.1M) | (2.4M) | (2.5M) |
Kala Pharmaceuticals 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 Kala Pharmaceuticals 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 Kala Pharmaceuticals' 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 Kala 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 | 0.22 | |
β | Beta against Dow Jones | 0.39 | |
σ | Overall volatility | 3.34 | |
Ir | Information ratio | 0.04 |
Kala Pharmaceuticals Volatility Alert
Kala Pharmaceuticals currently demonstrates below-average downside deviation. It has Information Ratio of 0.04 and Jensen Alpha of 0.22. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Kala Pharmaceuticals' stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Kala Pharmaceuticals' 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.Kala Pharmaceuticals Fundamentals Vs Peers
Comparing Kala Pharmaceuticals' 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 Kala Pharmaceuticals' direct or indirect competition across all of the common fundamentals between Kala Pharmaceuticals and the related equities. This way, we can detect undervalued stocks with similar characteristics as Kala Pharmaceuticals or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Kala Pharmaceuticals' fundamental indicators could also be used in its relative valuation, which is a method of valuing Kala Pharmaceuticals by comparing valuation metrics with those of similar companies.
| Better Than Average | Worse Than Average | Compare Kala Pharmaceuticals to competition |
| Fundamentals | Kala Pharmaceuticals | Peer Average |
| Return On Equity | -2.48 | -0.31 |
| Return On Asset | -0.4 | -0.14 |
| Current Valuation | 19.45 M | 16.62 B |
| Shares Outstanding | 4.61 M | 571.82 M |
| Shares Owned By Insiders | 5.14 % | 10.09 % |
| Shares Owned By Institutions | 48.13 % | 39.21 % |
| Number Of Shares Shorted | 30.48 K | 4.71 M |
| Price To Earning | (0.52) X | 28.72 X |
| Price To Book | 4.61 X | 9.51 X |
| Price To Sales | 1.16 X | 11.42 X |
| Gross Profit | 1.33 M | 27.38 B |
| EBITDA | (36.08 M) | 3.9 B |
| Net Income | (42.2 M) | 570.98 M |
| Cash And Equivalents | 44.57 M | 2.7 B |
| Cash Per Share | 30.44 X | 5.01 X |
| Total Debt | 36.32 M | 5.32 B |
| Debt To Equity | 4.77 % | 48.70 % |
| Current Ratio | 2.54 X | 2.16 X |
| Book Value Per Share | 2.72 X | 1.93 K |
| Cash Flow From Operations | (27.93 M) | 971.22 M |
| Short Ratio | 1.91 X | 4.00 X |
| Earnings Per Share | (11.67) X | 3.12 X |
| Target Price | 15.0 | |
| Number Of Employees | 43 | 18.84 K |
| Beta | -2.14 | -0.15 |
| Market Capitalization | 31.61 M | 19.03 B |
| Total Asset | 55.95 M | 29.47 B |
| Retained Earnings | (629.41 M) | 9.33 B |
| Working Capital | 44.52 M | 1.48 B |
| Current Asset | 84.65 M | 9.34 B |
| Current Liabilities | 10.53 M | 7.9 B |
| Net Asset | 55.95 M |
Note: Discretionary transaction by Baker Bros. Advisors Lp of tradable shares of Kala Pharmaceuticals subject to Rule 16b-3 [view details]
Kala Pharmaceuticals Market Momentum
Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Kala . 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.
| Accumulation Distribution | 51.43 | |||
| Daily Balance Of Power | (1.08) | |||
| Rate Of Daily Change | 0.98 | |||
| Day Median Price | 6.79 | |||
| Day Typical Price | 6.76 | |||
| Price Action Indicator | (0.14) | |||
| Period Momentum Indicator | (0.14) |
About Kala Pharmaceuticals Buy or Sell Advice
When is the right time to buy or sell Kala Pharmaceuticals? Buying financial instruments such as Kala 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 Kala Pharmaceuticals 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. For information on how to trade Kala Stock refer to our How to Trade Kala Stock guide.You can also try the Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
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 Kala Pharmaceuticals. If investors know Kala 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 Kala Pharmaceuticals listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Earnings Share (11.67) | Quarterly Revenue Growth (1.00) | Return On Assets (0.40) | Return On Equity (2.48) |
The market value of Kala Pharmaceuticals is measured differently than its book value, which is the value of Kala that is recorded on the company's balance sheet. Investors also form their own opinion of Kala Pharmaceuticals' value that differs from its market value or its book value, called intrinsic value, which is Kala Pharmaceuticals' 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 Kala Pharmaceuticals' market value can be influenced by many factors that don't directly affect Kala Pharmaceuticals' 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 Kala Pharmaceuticals' value and its price as these two are different measures arrived at by different means. Investors typically determine if Kala Pharmaceuticals is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Kala Pharmaceuticals' 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.