RVNC Revance stock Story

RVNC -  USA Stock  

USD 30.40  0.32  1.04%

Revance Therapeutics Revenue Per Employee is projected to decrease significantly based on the last few years of reporting. The past year's Revenue Per Employee was at 2,140. The current year Average Equity is expected to grow to about 201.6 M, whereas Net Income Per Employee is forecasted to decline to (891.3 K). The essential aim of this article is to break down our current position on Revance for investors considering to short it. We will analyze why Revance Therapeutics investors may still consider a stake in the business.
Published over six months ago
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Are Revance (NASDAQ:RVNC) investors starting to hold back?
Revance Therapeutics has a beta of -0.4605. Let's try to break down what Revance's beta means in this case. As the market goes up, the company is expected to outperform it. However, if the market returns are negative, Revance Therapeutics will likely underperform. The beta indicator helps investors understand whether Revance Therapeutics moves in the same direction as the rest of the market, and how volatile (i.e., risky) it is compared to the market (i.e., selected benchmark). In other words, if Revance deviates very little from the market, it does not add much risk to the portfolio, but it also doesn't increase the expected returns.
There are currently many different techniques concerning forecasting the market as a whole as well as predicting future values of individual securities such as Revance Therapeutics. Regardless of method or technology, to accurately forecast the stock or bond market is more a matter of luck rather than a particular technique. Nevertheless, trying to predict the stock market accurately is still an essential part of the overall investment decision process. Using different forecasting techniques and comparing the results might improve your chances of accuracy even though unexpected events may often change the market sentiment and impact your forecasting results.

Predictive Modules for Revance Therapeutics

Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of Revance Therapeutics' 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 Revance Therapeutics 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 Revance Therapeutics. Your research has to be compared to or analyzed against Revance Therapeutics' peers to derive any actionable benefits. When done correctly, Revance Therapeutics' 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 Revance Therapeutics.

How important is Revance Therapeutics's Liquidity

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

How RVNC Revance utilizes its cash?

To perform a cash flow analysis of Revance Therapeutics, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Revance Therapeutics is receiving and how much cash it distributes out in a given period. The Revance Therapeutics cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Revance Therapeutics Net Cash Flow from Operations is projected to decrease significantly based on the last few years of reporting. The past year's Net Cash Flow from Operations was at (178.5 Million)

Payment of 411 shares by Dustin Sjuts of Revance Therapeutics subject to Rule 16b-3

Legal trades by Revance Therapeutics 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:
Revance insider trading alert for payment of common stock by Dustin Sjuts, Chief Commercial Officer, on 16th of April 2021. This event was filed by Revance Therapeutics Inc with SEC on 2021-04-16. Statement of changes in beneficial ownership - SEC Form 4. Dustin Sjuts currently serves as vice president of strategy and sales of Revance Therapeutics [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.

Breaking it down a bit more

Revance Therapeutics shows above-average downside volatility for the selected time horizon. We advise investors to inspect Revance Therapeutics further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Revance Therapeutics future alpha.

Returns Breakdown

Return on Investment(95.63)
Return on Assets(60.72)
Return on Equity(92.71)
Return Capital(0.69)
Return on Sales(346.95)

Revance Therapeutics is epected to finish above $25 in December

Current Sortino Ratio is up to 0.05. Price may slip again. Revance Therapeutics shows above-average downside volatility for the selected time horizon. We advise investors to inspect Revance Therapeutics further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Revance Therapeutics future alpha.

Our Final Take On Revance Therapeutics

Whereas other entities within the biotechnology industry are still a little expensive, even after the recent corrections, Revance Therapeutics may offer a potential longer-term growth to investors. To conclude, as of the 1st of November 2020, our up-to-date 30 days Buy-Hold-Sell recommendation on the company is Strong Sell. However, we believe Revance Therapeutics is undervalued with below average odds of financial turmoil 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 Revance Therapeutics. Please refer to our Terms of Use for any information regarding our disclosure principles.

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