Paratek Pharma currently holds roughly 125.16
M in cash with (103.42
M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 2.67.
We provide trade recommendations to complement the recent
expert consensus on Paratek Pharma. Our dynamic recommendation engine exercises a multidimensional algorithm to analyze the firm's potential to grow using all technical and fundamental data available at the time.
Investing in Paratek Pharmaceuticals, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding Paratek Pharmaceuticals along with other instruments in the same portfolio. Using conventional
technical analysis and
fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed
many market ups and downs, anticipate that the market will even out over time. This tendency of Paratek Pharmaceuticals' 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 note, it is not enough to conduct a financial or market analysis of a single entity such as Paratek Pharmaceuticals. Your research has to be compared to or analyzed against Paratek Pharmaceuticals' peers to derive any actionable benefits. When done correctly, Paratek Pharmaceuticals' competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy toward taking a position in Paratek Pharmaceuticals.
How important is Paratek Pharmaceuticals's Liquidity
Paratek Pharmaceuticals
financial leverage refers to using borrowed capital as a funding source to finance Paratek Pharmaceuticals ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Paratek 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 Paratek 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 Paratek 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 Paratek Pharmaceuticals's total debt and its cash.
Detailed Perspective On Paratek Pharmaceuticals
Paratek Pharma appears to be somewhat reliable, given 1 month investment horizon.
Paratek Pharma maintains Sharpe Ratio (i.e. Efficiency) of 0.13, which implies the firm had 0.13% of return per unit of risk over the last month. Our standpoint towards forecasting the volatility of a stock is to use all available market data together with stock specific
technical indicators that cannot be
diversified away. We have found twenty-one
technical indicators for Paratek Pharma, which you can use to evaluate future volatility of the company. Please employ Paratek Pharma Coefficient Of Variation of 815.14,
semi deviation of 2.34, and Risk Adjusted Performance of 0.1092 to confirm if our risk estimates are consistent with your expectations.
Will Paratek Pharma recent surge continue?
Mean deviation is down to 2.48. It may signify a possible volatility plunge. Paratek Pharma currently demonstrates below-average downside deviation. It has Information Ratio of 0.08 and Jensen Alpha of 0.33. However, we advise investors to further question Paratek Pharma expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Paratek Pharma'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 Paratek Pharma'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.
The Current Takeaway on Paratek Pharma Investment
Although some companies under the biotechnology industry are still a bit expensive, Paratek Pharma may offer a potential longer-term growth to traders. While some traders 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 Paratek Pharma.
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Raphi Shpitalnik is a Junior Member of Macroaxis Editorial Board. Raphael is a young entrepreneur who joined Macroaxis on a part-time basis at the beginning of the pandemic and eventually acquired a real taste for investing and fintech. He likes to analyze different equity instruments across a wide range of industries, focusing primarily on consumer products, sports, fintech, cannabis, and AI.
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 Raphi Shpitalnik do not own shares of Paratek Pharmaceuticals. Please refer to our
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