Reata Story

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RETA -- USA Stock  

USD 91.20  0.33  0.36%

It appears Reata Pharma may not have a good chance to recover from the current slip as its shares fell again. Reata Pharma current daily volatility is 3.81 percent, with a beta of 0.15 and an alpha of -0.38 over DOW. As many of us are getting excited about current market fluctuations it is important to go over Reata Pharma based on its technical indicators. We will evaluate why we are still optimistic in anticipation of a recovery.
Published over a month ago
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Will Reata Pharma (NASDAQ:RETA) volatility rise before April
Reata Pharma currently holds roughly 578.26 M in cash with (426.58 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 17.07.
The company holds a Beta of 0.1463, which implies not very significant fluctuations relative to the market. Let's try to break down what Reata's beta means in this case. As returns on the market increase, Reata Pharma returns are expected to increase less than the market. However, during the bear market, the loss on holding Reata Pharma will be expected to be smaller as well. Even though it is essential to pay attention to Reata Pharma current trending patterns, it is always good to be careful when utilizing equity existing price patterns. Our philosophy towards forecasting any stock's future performance is to check both, its past performance charts as well as the business as a whole, including all available technical indicators. Reata Pharma exposes twenty-one different technical indicators, which can help you to evaluate its performance. Reata Pharma has an expected return of -0.28%. Please be advised to check Reata Pharma treynor ratio, and the relationship between the standard deviation and downside variance to decide if Reata Pharma stock performance from the past will be repeated at some point in the near future.
Investing in Reata Pharma, 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 Reata Pharma 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, frequently view the market will even out over time. This tendency of Reata Pharma's 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 Reata Pharma 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 Reata Pharma. Your research has to be compared to or analyzed against Reata Pharma's peers to derive any actionable benefits. When done correctly, Reata Pharma's 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 Reata Pharma.

How important is Reata Pharma's Liquidity

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

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for Reata Pharma, but it might be worth checking our own buy vs. sell analysis

Reata Pharma Correlation with Peers

Investors in Reata can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in Reata Pharma. Diversification will allow for the same portfolio return with reduced risk. The correlation table of Reata Pharma and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities Reata is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage.
Please check volatility of Reata for more details

Acquisition by Oliger Christy J of 106 shares of Reata Pharma subject to Rule 16b-3

Legal trades by Reata 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:
Reata insider trading alert for grant of stock option (right to buy) by Oliger Christy J, the corporate stakeholder, on 16th of April 2021. This event was filed by Reata Pharmaceuticals Inc with SEC on 2021-04-16. 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 Reata Pharma

Reata Pharma maintains Sharpe Ratio (i.e. Efficiency) of -0.0742, which implies the firm had -0.0742% of return per unit of risk over the last month. Macroaxis standpoint towards forecasting the risk of any stock is to look at both systematic and unsystematic factors of the business, including all available market data and technical indicators. Reata Pharma exposes twenty-one different technical indicators, which can help you to evaluate volatility that cannot be diversified away. Please be advised to check Reata Pharma risk adjusted performance of (0.06), and Coefficient Of Variation of (1,060) to confirm the risk estimate we provide.
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-0.43-0.41-0.020.33
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-0.430.810.570.18
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-0.410.810.410.19
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-0.020.570.41-0.06
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0.330.180.19-0.06
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Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Reata Pharma is epected to finish above $120 in April

The skewness is down to -0.17 as of today.
As of the 1st of March, Reata Pharma holds the risk adjusted performance of (0.06), and Coefficient Of Variation of (1,060). Compared to fundamental indicators, the technical analysis model allows you to check existing technical drivers of Reata Pharma, as well as the relationship between them. Put it differently, you can use this information to find out if the company will indeed mirror its model of past market data, or the prices will eventually revert. We were able to analyze nineteen technical drivers for Reata Pharma, which can be compared to its competitors. Please check Reata Pharma treynor ratio, and the relationship between the standard deviation and downside variance to decide if Reata Pharma is priced some-what accurately, providing market reflects its current price of 122.26 per share. Given that Reata Pharma has jensen alpha of (0.38), we recommend you to check out Reata Pharma's recent market performance to make sure the company can sustain itself at a future point.

Our Final Take On Reata Pharma

Whereas some other companies in the biotechnology industry are either recovering or due for a correction, Reata may not be as strong as the others in terms of longer-term growth potentials. To conclude, as of the 1st of March 2021, our concluding 30 days buy-hold-sell recommendation on the company is Hold. We believe Reata Pharma is undervalued with close to average probability of distress for the next two years.

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 Reata Pharma. Please refer to our Terms of Use for any information regarding our disclosure principles.

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