CTI BioPharma Story

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CTIC -- USA Stock  

USD 3.50  0.16  4.79%

The stock is undergoing an active upward rally. CTI BioPharma Revenue Per Employee is projected to increase significantly based on the last few years of reporting. The past year's Revenue Per Employee was at 133,800. The current year Average Assets is expected to grow to about 73.2 M, whereas Net Income Per Employee is forecasted to decline to (1.7 M). As many investors are getting excited about healthcare space, it is fair to go over CTI BioPharma Corp as an investment option.
Published over three weeks ago
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How much will CTI BioPharma owe in October?
The company currently holds 8.8 M in liabilities with Debt to Equity (D/E) ratio of 0.15, which may suggest CTI BioPharma is not taking enough advantage from borrowing. CTI BioPharma Corp has a current ratio of 5.1, suggesting that it is liquid enough and is able to pay its financial obligations when due.
CTI BioPharma financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of CTI BioPharma, including all of CTI BioPharma's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of CTI BioPharma assets, the company is considered highly leveraged. Understanding the composition and structure of overall CTI BioPharma debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.

Understanding CTI BioPharma Total Debt

CTI BioPharma Corp liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. CTI BioPharma Corp has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on CTI BioPharma balance sheet include debt obligations and money owed to different CTI BioPharma vendors, workers, and loan providers. Below is the chart of CTI BioPharma main long-term debt accounts currently reported on its balance sheet.
You can use CTI BioPharma Corp financial leverage analysis tool to get a better grip on understanding its financial position

How important is CTI BioPharma's Liquidity

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

Acquisition by Bruce Seeley of 500 shares of CTI BioPharma subject to Rule 16b-3

Legal trades by CTI BioPharma 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:
CTI BioPharma insider trading alert for grant of common stock by Bruce Seeley, EVP Chief Operating Officer, on 2nd of July 2020. This event was filed by Cti Biopharma Corp with SEC on 2020-07-02. Statement of changes in beneficial ownership - SEC Form 4. Bruce Seeley currently serves as executive vice president and chief commercial officer of CTI BioPharma Corp [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.

Breaking down CTI BioPharma Further

The current price rise of CTI BioPharma Corp could raise concerns from investors as the firm it trading at a share price of 2.15 on slow start in volume. The company directors and management may have good odds in positioning the firm resources to exploit market volatility in October. The stock standard deviation of daily returns for 30 days investing horizon is currently 14.64. The very high volatility is mostly attributed to the latest market swings and not very good earnings reports from some of the CTI BioPharma partners.

Liabilities Breakdown

24.1 M
Current Liabilities
13.2 M
Long-Term Liabilities
Total Liabilities35.13 Million
Current Liabilities24.11 Million
Long-Term Liabilities13.2 Million

CTI BioPharma implied volatility may change after the rise

Current jensen alpha is at -0.14. CTI BioPharma Corp exhibits very low volatility with skewness of 2.34 and kurtosis of 10.95. However, we advise investors to further study CTI BioPharma Corp technical indicators to make sure all market info is available and is reliable.

Our Final Take On CTI BioPharma

Whereas some companies within the biotechnology industry are still a little expensive, even after the recent corrections, CTI BioPharma may offer a potential longer-term growth to investors. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither take up nor short any shares of CTI BioPharma at this time. The CTI BioPharma Corp 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 CTI BioPharma.

About Contributor

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 Achuva Shats do not own shares of CTI BioPharma Corp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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