Orexigen Therapeutics, Inc. (OREX): From Top to Bottom

Orexigen Therapeutics, Inc. (OREX) is an interesting player in the Healthcare space, with a focus on Drug Manufacturers – Other. The stock has been active on the tape, currently trading at $0.27, down from yesterday’s close by -18.21%. 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

Orexigen Therapeutics, Inc. (OREX) currently trades with a market capitalization of $5.01 Million. That value represents a market adjusting for revenues that have been growing by 169.97 % 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 -$140.09 Million over the past twelve months. Generally speaking, earnings are expected to fall in coming quarters. Analysts are forecasting earnings of -$2.06 on a per share basis this quarter. Perhaps, that suggests something about why 1.89% 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, Orexigen Therapeutics, Inc. recorded a 52-week high of $4.46. It is now trading 4.19% off that level. The stock is trading $1.10 its 50-day moving average by 0.83%. The stock carved out a 52-week low down at $0.31.

In recent action, Orexigen Therapeutics, Inc. (OREX) has made a move of -71.28% 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 16.68, 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 6.12% with $18.57 Million sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of OREX.

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