Reata Pharma reported the previous year's revenue of 8.5
M. Net Loss for the year was (368.92
M) with loss before overhead, payroll, taxes, and interest of (225.99
M).
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.
Detailed Perspective On Reata Pharmaceuticals
Reata Pharma has a total of 31.07 Million outstanding shares. The majority of Reata Pharma
outstanding shares are owned by
third-party entities. These institutional holders are usually referred to as non-private investors looking to secure positions in Reata Pharma to benefit from reduced commissions. Consequently, institutional investors are subject to a different set of regulations than regular investors in Reata Pharma. Please pay attention to any change in the institutional holdings of Reata Pharma as this could imply that something significant has changed or about to change at the company. Remember, it does not matter who owns the company or if the company is currently
losing money. If the true value of the company is more than the market pays for it currently, you can still have a good investment opportunity.
Ownership Breakdown
| Retail Investors23.74% | | Institutions71.49% |
| Retail Investors | 23.74 |
| Insiders | 4.77 |
| Institutions | 71.49 |
Reata Pharma is likely finish below $125 in 30 days
Current maximum drawdown is at 19.08. Reata Pharma exhibits very low volatility with skewness of -0.17 and kurtosis of 0.36. However, we advise investors to further study Reata Pharma technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Reata Pharma's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Reata 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 stocks as prices fall.
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. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither take up nor drop any shares of Reata Pharma at this time. The Reata Pharma risk-reward trade off is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Reata Pharma.
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
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 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
[email protected]
