GT Biopharma Story

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GTBP -- USA Stock  

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Given the investment horizon of 90 days GT Biopharma is expected to generate 141.45 times more return on investment than the market. However, the company is 141.45 times more volatile than its market benchmark. It trades about 0.13 of its potential returns per unit of risk. The DOW is currently generating roughly 0.18 per unit of risk. Although many risk-takers are getting more into healthcare space, some of us are not very happy with GT Biopharma's current volatility. We will focus on why some insiders are closely monitoring GT Biopharma's volatility.
Published over two weeks ago
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Should you exit your GT Biopharma (NASDAQ:GTBP) position after the recent roll up?
The company currently holds 23.11 M in liabilities with Debt to Equity (D/E) ratio of 137.5, indicating GT Biopharma may have difficulties to generate enough cash to satisfy its financial obligations. GT Biopharma has a current ratio of 0.03, indicating that it has a negative working capital and may not be able to pay financial obligations when due.
GT Biopharma holds a performance score of 9 on a scale of zero to a hundred. The company owns a Beta (Systematic Risk) of -0.6839, which attests to possible diversification benefits within a given portfolio. Let's try to break down what GT Biopharma's beta means in this case. As returns on the market increase, returns on owning GT Biopharma are expected to decrease at a much lower rate. During the bear market, GT Biopharma is likely to outperform the market. Although it is essential to pay attention to GT Biopharma existing price patterns, it is also good to be reasonable about what you can do with equity price patterns. Our way in which we are determining future potential of any stock is to look not only at its past charts but also at the business as a whole, including all available fundamental and technical indicators. To evaluate if GT Biopharma expected return of 15.86 will be sustainable into the future, we have found twenty-one different technical indicators, which can help you to check if the expected returns are sustainable. Use GT Biopharma coefficient of variation, as well as the relationship between the treynor ratio and semi variance to analyze future returns on GT Biopharma.
Volatility is a rate at which the price of GT Biopharma 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 GT Biopharma may increase or decrease. In other words, similar to GT Biopharma's beta indicator, it measures the risk of GT Biopharma and helps estimate the fluctuations that may happen in a short period of time. So if prices of GT Biopharma 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 GT Biopharma's Liquidity

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

How GT Biopharma utilizes its cash?

To perform a cash flow analysis of GT Biopharma, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash GT Biopharma is receiving and how much cash it distributes out in a given period. The GT Biopharma cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
GT Biopharma Net Cash Flow from Operations is very stable at the moment as compared to the past year. GT Biopharma reported last year Net Cash Flow from Operations of (7.26 Million)

Breaking down GT Biopharma Further

Net Loss for the year was (14.83 M).

Are GT Biopharma technical ratios showing a reversion?

GT Biopharma recent standard deviation upswings over 115.4. GT Biopharma is displaying above-average volatility over the selected time horizon. Investors should scrutinize GT Biopharma independently to ensure intended market timing strategies are aligned with expectations about GT Biopharma volatility. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure GT Biopharma'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 GT Biopharma'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 Takeaway on GT Biopharma Investment

Although some firms under the biotechnology industry are still a bit expensive, GT Biopharma may offer a potential longer-term growth to insiders. While some insiders may not share our view we believe that the current risk-reward utility 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 GT 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 Vlad Skutelnik do not own shares of GT Biopharma. Please refer to our Terms of Use for any information regarding our disclosure principles.

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