Digging Up the Facts on Nektar Therapeutics (NKTR)

Nektar Therapeutics (NASDAQ:NKTR) is an interesting player in the Healthcare space, with a focus on Biotechnology. The stock has been active on the tape, currently trading at $13.10, up from yesterday’s close by -3.03%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

Money managers are always interested in a company that can find the right recipe of fundamental data because it reflects something important going on underneath the surface. Nektar Therapeutics (NKTR) currently trades with a market capitalization of $2.00B. That value represents a market adjusting for revenues that have been falling by -39.40% on a quarterly year/year basis as of the company’s last quarterly report.

The balance sheet health of any company plays a key role in its ability to meet its obligations and maintain the faith of its investment base. For NKTR, the company currently has $253.51M of cash on the books, which is offset by $247.52M current liabilities. You can get a sense of how sustainable that is by a levered free cash flow of $-72.87M over the past twelve months. Generally speaking, earnings are expected to grow in coming quarters. Analysts are forecasting earnings of -0.26 on a per share basis this quarter. Perhaps, that suggests something about why 105.70% of the outstanding share supply is held by institutional investors.

Technical Analysis

Sometimes, we can understand most about a stock by simply looking at how it has been trading. Looking at the stock’s movement on the chart, Nektar Therapeutics recorded a 52-week high of 19.98. It is now trading 6.47 off that level. The stock is trading 12.75 its 50-day moving average by -0.76. The stock carved out a 52-week low down at 10.52.

In recent action, Nektar Therapeutics (NKTR) has made a move of +4.38% over the past month, which has come on weak relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 23.19, and it’s gotten there by action that has been more volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 151.94M with 11.11% sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of NKTR.

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