On a scale of 0 to 100, Intercept Pharmaceuticals holds a
performance score of 4. The company retains a Market Volatility (i.e., Beta) of 1.0249, which attests to a somewhat significant risk relative to the market. Let's try to break down what Intercept's beta means in this case. Intercept Pharmaceuticals returns are very sensitive to returns on the market. As the market goes up or down, Intercept Pharmaceuticals is expected to follow. Although it is vital to follow
Intercept Pharmaceuticals current price history, it is good to be conservative about what you can do with the information regarding equity current price movements. The philosophy towards determining
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
Intercept Pharmaceuticals technical indicators, you can presently evaluate if the expected return of 0.29% will be sustainable into the future. Please utilizes Intercept Pharmaceuticals
information ratio,
potential upside, as well as the
relationship between the Potential Upside and
kurtosis to make a quick decision on whether Intercept Pharmaceuticals current trending patterns will revert.
Typically, a company's
financial statements are the reports that show the
financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Intercept Pharmaceuticals income statement, its balance sheet, and the statement of cash flows. Potential Intercept Pharmaceuticals investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Intercept Pharmaceuticals investors may use each financial statement separately, they are all related. The changes in Intercept Pharmaceuticals's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Intercept Pharmaceuticals's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our
technical analysis and
fundamental analysis pages.
The goal of Intercept Pharmaceuticals
fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Intercept Pharmaceuticals performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Intercept Pharmaceuticals shares is the value that is considered the true value of the share. If
the intrinsic value of Intercept is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Intercept Pharmaceuticals. Please read more on our
fundamental analysis page.
How important is Intercept Pharmaceuticals's Liquidity
Intercept Pharmaceuticals
financial leverage refers to using borrowed capital as a funding source to finance Intercept Pharmaceuticals ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Intercept Pharmaceuticals 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. Financial leverage can amplify the potential profits to Intercept Pharmaceuticals' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Intercept Pharmaceuticals' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Intercept Pharmaceuticals's total debt and its cash.
Going after Intercept Financials
Although in the United States, the Securities and Exchange Commission has enforced strong rules to prevent insiders from engaging in insider trading, finding insiders among active shareholders of Intercept Pharmaceuticals is not uncomon. There are few distinct groups of Intercept Pharmaceuticals stakehholders that the SEC considers insiders. Investors usually gain information through their work as corporate directors, officers, or employees. If these individuals share the information with a friend, family, or business partner and the person who receives the information exchanges stock in the company, he or shie is also an insider. Let's take a look at how the ownership of Intercept is distributed among investors.
Ownership Allocation
Intercept Pharmaceuticals has a total of thirty-three million one hundred fifty-nine thousand nine hundred ninety-nine
outstanding shares. The majority of Intercept Pharmaceuticals
outstanding shares are owned by
outside corporations. These institutional investors are usually referred to as non-private investors looking to purchase positions in Intercept Pharmaceuticals to benefit from reduced commissions. Consequently, third-party entities are subject to a different set of regulations than regular investors in Intercept Pharmaceuticals. Please pay attention to any change in the institutional holdings of Intercept Pharmaceuticals as this could imply that something significant has changed or about to change at the company. Please note that no matter how much assets the company holds, if the real value of the firm is less than the current market value, you may not be able to make money on it.
| Retail Investors5.08% | Insiders17.5% | Institutions77.42% |
| Retail Investors | 5.08 |
| Insiders | 17.5 |
| Institutions | 77.42 |
| 2018 | 2019 | 2020 | 2021 (projected) |
PPandE Turnover | 13.52 | 32.28 | 54.1 | 58.37 | Long Term Debt to Equity | 19.41 | 10.32 | 9.29 | 9.32 |
Asset Utilization
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Intercept Pharmaceuticals has an asset utilization ratio of 54.03 percent. This implies that the company is making $0.54 for each dollar of assets. An increasing asset utilization means that Intercept Pharmaceuticals is more efficient with each dollar of assets it utilizes for everyday operations.
| Current Assets | 502.35 Million | 94.67 |
| Assets Non Current | 28.28 Million | 5.33 |
Are Intercept Pharmaceuticals technical ratios showing a bounce-back?
The value at risk is down to -7.2 as of today. Intercept Pharmaceuticals exhibits above-average semi-deviation for your current time horizon. We encourage investors to investigate Intercept Pharmaceuticals individually to make sure intended market timing strategies and available technical indicagtors are consistent with their estimates about Intercept Pharmaceuticals future systematic risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Intercept Pharmaceuticals' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Intercept Pharmaceuticals' 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.
Intercept Pharmaceuticals Implied Volatility
Intercept Pharmaceuticals' implied volatility exposes the market's sentiment of Intercept Pharmaceuticals stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Intercept Pharmaceuticals' implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Intercept Pharmaceuticals stock will not fluctuate a lot when Intercept Pharmaceuticals' options are near their expiration.
Our Final Takeaway
Whereas some firms under the biotechnology industry are still a bit expensive, Intercept Pharmaceuticals may offer a potential longer-term growth to private investors. While some private investors 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 Intercept Pharmaceuticals.
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Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management.
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 Vlad Skutelnik do not own shares of Intercept Pharmaceuticals. Please refer to our
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