Foghorn Story

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FHTX -- USA Stock  

USD 11.78  0.16  1.34%

The fundamental goal of this short article is to break down our forecasting of Foghorn for investors. We will try to forecast Foghorn Therapeutics outlook for April.
Published over three weeks ago
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Foghorn Therapeutics (NASDAQ:FHTX) is to drop even more in April
The firm has a beta of -0.2421. Let's try to break down what Foghorn's beta means in this case. The returns on MARKET and Foghorn Therapeutics are completely uncorrelated. The beta indicator helps investors understand whether Foghorn Therapeutics moves in the same direction as the rest of the market, and how volatile (i.e., risky) it is compared to the market (i.e., selected benchmark). In other words, if Foghorn deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as Foghorn Therapeutics. Regardless of method or technology, to accurately forecast the stock market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.

Predictive Modules for Foghorn Therapeutics

Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Foghorn Therapeutics' stock price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of Foghorn Therapeutics in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as Foghorn Therapeutics. Your research has to be compared to or analyzed against Foghorn Therapeutics' peers to derive any actionable benefits. When done correctly, Foghorn Therapeutics' competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in Foghorn Therapeutics.

How important is Foghorn Therapeutics's Liquidity

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

How Foghorn utilizes its cash?

To perform a cash flow analysis of Foghorn Therapeutics, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Foghorn Therapeutics is receiving and how much cash it distributes out in a given period. The Foghorn Therapeutics cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Foghorn Therapeutics Net Cash Flow from Operations is fairly stable at the moment as compared to the past year. Foghorn Therapeutics reported Net Cash Flow from Operations of (31.29 Million) in 2020

Acquisition by Decicco Carl of 100000 shares of Foghorn Therapeutics subject to Rule 16b-3

Legal trades by Foghorn Therapeutics 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:
Foghorn insider trading alert for grant of stock option (right to buy) by Decicco Carl, Chief Scientific Officer, on 1st of February 2021. This event was filed by Foghorn Therapeutics Inc with SEC on 2021-02-01. Statement of changes in beneficial ownership - SEC Form 4 [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.

Detailed Perspective On Foghorn Therapeutics

Foghorn Therapeutics is displaying above-average volatility over the selected time horizon. Investors should scrutinize Foghorn Therapeutics independently to ensure intended market timing strategies are aligned with expectations about Foghorn Therapeutics volatility. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Foghorn Therapeutics' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Foghorn Therapeutics' 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.

Returns Breakdown

Return on Assets(0.53)
Return on Equity(2.43)
Return Capital(0.63)
Return on Sales(153.16)

Another 3 percent rise for Foghorn Therapeutics

The total risk alpha is down to -1.53 as of today.
As of the 20th of March, Foghorn Therapeutics shows the coefficient of variation of (1,203), and Mean Deviation of 3.64. Foghorn Therapeutics technical analysis allows you to utilize historical prices and volume patterns in order to determine a pattern that computes 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 interpolate and analyze data for nineteen technical drivers for Foghorn Therapeutics, which can be compared to its rivals. Please confirm Foghorn Therapeutics mean deviation, information ratio, as well as the relationship between the Information Ratio and downside variance to decide if Foghorn Therapeutics is priced favorably, providing market reflects its regular price of 16.12 per share. Given that Foghorn Therapeutics has jensen alpha of (0.51), we urge you to verify Foghorn Therapeutics's prevailing market performance to make sure the company can sustain itself at a future point.

Our Final Perspective on Foghorn Therapeutics

While few other entities under the biotechnology industry are still a bit expensive, Foghorn Therapeutics may offer a potential longer-term growth to investors. The bottom line, as of the 20th of March 2021, we believe that at this point, Foghorn Therapeutics is somewhat reliable with below average chance of financial distress within the next 2 years. From a slightly different point of view, the entity appears to be undervalued. However, our final 30 days buy-or-sell advice on the company is Strong Sell.

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 Ellen Johnson do not own shares of Foghorn Therapeutics. Please refer to our Terms of Use for any information regarding our disclosure principles.

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