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DRRX -- USA Stock  

USD 1.65  0.04  2.37%

Given the investment horizon of 60 days, DURECT is expected to generate 2.11 times less return on investment than the market. In addition to that, the company is 3.45 times more volatile than its market benchmark. It trades about 0.02 of its total potential returns per unit of risk. The DOW is currently generating roughly 0.11 per unit of volatility. Although many risk-takers are getting more into healthcare space, some of us are not very happy with DURECT's current volatility. What exactly are DURECT shareholders getting in September? DURECT high volatility, while potentially profitable, can lead to more considerable losses for your portfolios.
Published over a month ago
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DURECT (NASDAQ:DRRX) high volatility trend continues
DURECT currently holds roughly 52.38 M in cash with 3.9 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 0.27. DURECT has performance score of 1 on a scale of 0 to 100. The firm shows a Beta (market volatility) of -0.6782, which means possible diversification benefits within a given portfolio. Let's try to break down what DURECT's beta means in this case. As returns on the market increase, returns on owning DURECT are expected to decrease at a much lower rate. During the bear market, DURECT is likely to outperform the market. Although it is extremely important to respect DURECT historical returns, it is better to be realistic regarding the information on equity current trending patterns. The approach towards predicting future performance of any stock is to evaluate the business as a whole together with its past performance, including all available fundamental and technical indicators. By evaluating DURECT technical indicators, you can now evaluate if the expected return of 0.0855% will be sustainable into the future. DURECT currently shows a risk of 5.6%. Please confirm DURECT standard deviation, value at risk, as well as the relationship between the Value At Risk and kurtosis to decide if DURECT will be following its price patterns.
Volatility is a rate at which the price of DURECT or any other equity instrument increases or decreases for a given set of returns. It is measured by calculating the standard deviation of the annualized returns over a given period of time and shows the range to which the price of DURECT may increase or decrease. In other words, similar to DURECT's beta indicator, it measures the risk of DURECT and helps estimate the fluctuations that may happen in a short period of time. So if prices of DURECT fluctuate rapidly in a short time span, it is termed to have high volatility, and if it swings slowly in a more extended period, it is understood to have low volatility. Please read more on our technical analysis page.

How important is DURECT's Liquidity

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

How DURECT utilizes its cash?

To perform a cash flow analysis of DURECT, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash DURECT is receiving and how much cash it distributes out in a given period. The DURECT cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities. DURECT Net Cash Flow from Operations is fairly stable at the moment as compared to the past year. DURECT reported Net Cash Flow from Operations of 11.1 Million in 2019

DURECT Volatility Drivers

DURECT unsystematic risk is unique to DURECT and usually not directly affected by the market or economic environment. An example of unsystematic risk is the possibility of poor earnings or a layoff due to coronavirus. One may mitigate nonsystematic risk by buying different securities in the same industry or by buying in different sectors. For example, if you have a position in DURECT you can also buy Eagle Pharmaceuticals. You can also mitigate this risk by investing in the drug manufacturers?specialty & generic sector as well as in companies having nothing to do with it. This type of risk is also called diversifiable risk and can be understood from analyzing DURECT important indicators over time. Here we run a correlation analysis between relevant fundamental ratios over at least ten year period to find a relationship in the way they react to changes in DURECT income statement and balance sheet. Here are more details about DURECT volatility.