Taking a Fresh Look at PTC Therapeutics, Inc. (PTCT)

PTC Therapeutics, Inc. (NASDAQ:PTCT) is an interesting player in the Healthcare space, with a focus on Biotechnology. The stock has been active on the tape, currently trading at $15.36, up from yesterday’s close by 1.79%. 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. PTC Therapeutics, Inc. (PTCT) currently trades with a market capitalization of $524.78M. That value represents a market adjusting for revenues that have been growing by 135.10% 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 PTCT, the company currently has $248.34M of cash on the books, which is offset by $96.56M current liabilities. You can get a sense of how sustainable that is by a levered free cash flow of $-65.03M over the past twelve months. Generally speaking, earnings are expected to grow in coming quarters. Analysts are forecasting earnings of -1 on a per share basis this quarter. Perhaps, that suggests something about why 97.10% of the outstanding share supply is held by institutional investors.

Technical Analysis

We’ve taken a serious look at this stock from a fundamental perspective, but the tale of the tape may offer more hints about what lies under the surface. Looking at the stock’s movement on the chart, PTC Therapeutics, Inc. recorded a 52-week high of 30.23. It is now trading 15.14 off that level. The stock is trading 12.32 its 50-day moving average by -2.77. The stock carved out a 52-week low down at 4.03.

In recent action, PTC Therapeutics, Inc. (PTCT) has made a move of +23.87% over the past month, which has come on Strong relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 54.55, 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 30.61M with 13.67% sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of PTCT.

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