The Case for and Against Opko Health, Inc. (OPK)

Opko Health, Inc. (OPK) is an interesting player in the Healthcare space, with a focus on Biotechnology. The stock has been active on the tape, currently trading at $4.90, down from yesterday’s close by -1.01%. 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

Opko Health, Inc. (OPK) currently trades with a market capitalization of $2.77 Billion. That value represents a market adjusting for revenues that have been falling by -11.59 % on a quarterly year/year basis as of the company’s last quarterly report.

You can get a sense of how sustainable that is by a levered free cash flow of -$97.48 Million over the past twelve months. Generally speaking, earnings are expected to grow in coming quarters. Analysts are forecasting earnings of -$0.08 on a per share basis this quarter. Perhaps, that suggests something about why 7.01% 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, Opko Health, Inc. recorded a 52-week high of $11.55. It is now trading 6.65% off that level. The stock is trading $5.52 its 50-day moving average by 0.62%. The stock carved out a 52-week low down at $4.50.

In recent action, Opko Health, Inc. (OPK) has made a move of -6.67% 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 19.03, 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 17.91% with $330.18 Million sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of OPK.

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