Chimerix Story

CMRX -- USA Stock

USD 9.34 0.21 2.30%

Macroaxis Story

While many traders are getting carried away by overanalyzing competition within healthcare space, it is quite reasonable to break down both, Chimerix and Dynavax Technologies as potential short-term investments. We are going to inspect some of the competitive aspects of both Chimerix and Dynavax.

Published over a week ago

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Should I exit all of Dynavax and Chimerix?

By analyzing existing technical and fundamental indicators between Chimerix and Dynavax, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Dynavax with a short position in Chimerix. Check out our pair correlation module for more information.

Let's begin by analyzing the assets. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Chimerix has an asset utilization ratio of 3.1 percent. This suggests that the company is making $0.031 for each dollar of assets. An increasing asset utilization means that Chimerix is more efficient with each dollar of assets it utilizes for everyday operations.

Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two companies, such as Chimerix or Denali is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

How important is Chimerix's Liquidity

Chimerix financial leverage refers to using borrowed capital as a funding source to finance Chimerix ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Chimerix 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. Please check the breakdown between Chimerix's total debt and its cash.

Correlation Between Chimerix and Denali Therapeutics

In general, stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Chimerix together with similar or unrelated positions with a negative correlation. For example, you can also add Denali Therapeutics to your portfolio. If Denali Therapeutics is not perfectly correlated to Chimerix it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Chimerix for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down. Please check pair correlation details between CMRX and DNLI for more information.

Note

Are you currently holding both Chimerix and Denali Therapeutics in your portfolio? Please note if you are using this as a pair-trade strategy between Chimerix and Denali Therapeutics, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses.

Acquisition by David Jakeman of 1500 shares of Chimerix subject to Rule 16b-3

Legal trades by Chimerix insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:

Chimerix insider trading alert for grant of stock option (right to buy) by David Jakeman, Principal Accounting Officer, on 23rd of December 2020. This event was filed by Chimerix Inc with SEC on 2020-12-23. Statement of changes in beneficial ownership - SEC Form 4. David Jakeman currently serves as principal accounting officer, executive director of finance and accounting of Chimerix [view details]

Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

What is driving Chimerix Investor Appetite?

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Let me now analyze Chimerix revenue. Based on the latest financial disclosure, Chimerix reported 11.02 M of revenue. This is 99.86% lower than that of the Healthcare sector and 98.52% lower than that of the Biotechnology industry. The revenue for all United States stocks is 99.88% higher than that of the firm. As for Dynavax Technologies we see revenue of 37.57 M, which is 94.94% lower than that of the Biotechnology

Sector

742.9 M

CMRX	11.02 Million	1.39
Sector	742.91 Million	93.86
DVAX	37.57 Million	4.75

Are you still undecided about Chimerix?

Chimerix current treynor ratio rises over 1.14. As of the 9th of January, Chimerix shows the Downside Deviation of 2.86, mean deviation of 3.81, and Risk Adjusted Performance of 0.2178. Chimerix technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices. Put another way, you can use this information to find out if the firm will indeed mirror its model of historical prices and volume momentum, or the prices will eventually revert. We were able to analyze and collect data for nineteen technical drivers for Chimerix, which can be compared to its rivals. Please confirm Chimerix semi deviation, jensen alpha, as well as the relationship between the Jensen Alpha and semi variance to decide if Chimerix is priced correctly, providing market reflects its regular price of 4.76 per share. Given that Chimerix has jensen alpha of 1.04, we suggest you to validate Chimerix's prevailing market performance to make sure the company can sustain itself at a future point.

Our Takeaway on Chimerix Investment

While other entities in the biotechnology industry are either recovering or due for a correction, Chimerix may not be performing as strong as the other in terms of long-term growth potentials. The inconsistency in the assessment between current Chimerix valuation and our trade advice on Chimerix is due to the recent market swings and your selection of investing horizon. 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 Chimerix.

About Contributor

Gabriel Shpitalnik is a Member of Macroaxs Editorial Board. Gabriel is a young entrepreneur and writes predominantly on the business, technology, and finance sector. He likes to analyze different equity instruments across a wide range of industries focusing primarily on consumer products and evolving technologies. 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 Gabriel Shpitalnik do not own shares of Chimerix. Please refer to our Terms of Use for any information regarding our disclosure principles.

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