Recro Story

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REPH -- USA Stock  

USD 3.55  0.15  4.05%

The next fiscal quarter end is expected on the 31st of December 2020. The stock goes through an active upward rally. Recro Pharma Tangible Asset Value is most likely to increase significantly in the upcoming years. The preceding year's Tangible Asset Value was reported at 83.01 Million. The current Working Capital is estimated to increase to about 28.3 M, while Net Income Per Employee is projected to decrease to (93.5 K). While many traders are getting carried away by overanalyzing healthcare space, it is reasonable to concentrate on Recro Pharma as an investment alternative.
Published over a month ago
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Should I hold on to my Recro (NASDAQ:REPH) position?
The company currently holds 118.39 M in liabilities with Debt to Equity (D/E) ratio of 403.6, indicating Recro Pharma may have difficulties to generate enough cash to satisfy its financial obligations. Recro Pharma has a current ratio of 3.87, suggesting that it is liquid enough and is able to pay its financial obligations when due.
Recro Pharma financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Recro Pharma, including all of Recro Pharma's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Recro Pharma assets, the company is considered highly leveraged. Understanding the composition and structure of overall Recro Pharma debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.

Understanding Recro Total Debt

Recro Pharma liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Recro Pharma has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Recro Pharma balance sheet include debt obligations and money owed to different Recro Pharma vendors, workers, and loan providers. Below is the chart of Recro main long-term debt accounts currently reported on its balance sheet.
You can use Recro Pharma financial leverage analysis tool to get a better grip on understanding its financial position

How important is Recro Pharma's Liquidity

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

Payment of 1352 shares by Ryan Lake of Recro Pharma subject to Rule 16b-3

Legal trades by Recro Pharma 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:
Recro insider trading alert for payment of common stock by Ryan Lake, Chief Financial Officer, on 20th of January 2021. This event was filed by Recro Pharma Inc with SEC on 2021-01-20. Statement of changes in beneficial ownership - SEC Form 4. Ryan Lake currently serves as senior vice president - finance, chief accounting officer of Recro Pharma [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.

A Deeper look at Recro

The entity reported the previous year's revenue of 74.23 M. Net Loss for the year was (20.54 M) with profit before overhead, payroll, taxes, and interest of 48.24 M.

Liabilities Breakdown

Current Liabilities
79.5 M
Long-Term Liabilities
Total Liabilities97.67 Million
Current Liabilities6.66 Million
Long-Term Liabilities79.51 Million

Over 3 percent rise for Recro Pharma. What does it mean for stockholders?

Recro Pharma current semi variance boosts over 12.15. Recro Pharma is displaying above-average volatility over the selected time horizon. Investors should scrutinize Recro Pharma independently to ensure intended market timing strategies are aligned with expectations about Recro Pharma volatility.

The Current Takeaway on Recro Pharma Investment

While other entities under the drug manufacturers?specialty & generic industry are still a bit expensive, Recro Pharma may offer a potential longer-term growth to stockholders. To summarize, as of the 12th of December 2020, we believe that Recro Pharma is currently undervalued with below average probability of financial unrest in the next two years. Our present 30 days advice on the company is Strong Hold.

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 Achuva Shats do not own shares of Recro Pharma. Please refer to our Terms of Use for any information regarding our disclosure principles.

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