Idera Pharmaceuticals, Inc. (IDRA) Stock Forecast: Should Investors Consider After 4.01% Decline?

If you’re on the hunt for stocks to watch today, Idera Pharmaceuticals, Inc. (NASDAQ:IDRA) is a stock to give close attention to. The company shares are trading 4.01% or 0.12 points down from last closing price of $2.99, reaching $2.87 at last check. The IDRA share price has dropped in 2 of the last 5 days and is up 2.4% over the past week. It will be exciting to see whether the stock manages to continue decreasing or take a minor break for the next few days. The move came on weak volume too with far less shares changing hands than in a normal session. Trading activity as of this writing weakened by -79,768 shares, and in total 117332 shares valued at $336743 were seen changing hands compared with 197100 shares valued at $589329 recorded at the previous session. You should take into consideration that a falling volume on lower prices shows the bearish trend but this is an early indication which means that the IDRA stock is near its bottom.

Idera Pharmaceuticals, Inc. (IDRA) shares have notched a 3-month gain of about 2.4%, but has still advanced 7.94% year to date. By comparison, the stock sank -78.76% over the past 12 months, while it jumped 6.03% over the 1 month. The company’s market cap is around $83.48M, with its short interest ratio standing at 4.08%.

In the current trading session for IDRA, the stock witnessed two major price actions, it rose to a high of $2.99 and was down as much as $2.83 at one point. The high recorded is very low when compared to their 52-week high which is $2.25. The 52-week high is now at -79.91 distance from current price. Their recent low of $14.16 represents a 26.44% recovery. This data is quite important for investors who look to benefit from the recent rise of the company’s stock. The price target currently for IDRA is $16, this is above the recent high that the stock attained. Taking a look at the overall sentimental views of financial analysts, the trading pattern of this stock recently is very clear.

The stock of Idera Pharmaceuticals, Inc. earned $-1.86 per share in the trailing 12 months and has a P/E ratio of -1.54. You can compare it with that of similar companies in its industry to get a sense of whether the stock you’re looking to purchase is overvalued or undervalued. Its current price to earnings ratio is lower than the ones recorded by the industry which is 69.3 and lower compared to the sector’s average of 32.55. When the P/E ratio is low let’s say below 1.0, then the stock price is considered a good value. IDRA also has P/S multiple of 200.33. This is greater versus the 12 month P/S ratios of other companies in the same indutry. The peer average price to sales ratio is 49.5x.

The company recorded an interesting insider purchase transaction by the CEO on Dec 24, 2018. A Securities and Exchanges Commission filings show that Vincent Milano bought a total of 15,000 IDRA shares that day for a sum of around $43,950. The filings show that the insider stake has now grown to 55,816 shares, currently worth $160,192. Idera Pharmaceuticals, Inc. (IDRA) insiders have acquired 65,899 shares in the stock within the past three months. The total insider sales reported to the SEC in that time frame amounted to 238,234 shares. In total, individual insiders traded 304,133 shares in the business, which makes up 38.219% of 795,756 shares that were traded over a year. In the past 12 months, insiders have purchased 257,522 shares while the seller parted with 538,234 shares.

IDRA‘s last price was down -41.03% as compared to the average trading price of 50 days recorded at $4.87 while enlarging the period to 200 trading days, the average closing price was $2.82. At present, there are 27.92 million in the total number of common shares owned by the public and among those 22.38 million shares have been available to trade. The percentage of shares being held by the company management was 0.7% while institutions stake was 45%. The company has generated negative returns on equity over the last 12 months (-72.6%). It managed to keep its gross profit margin at 0% over the past 12 months.

When assessing the full upside of the IDRA stock, there is another set of technicals that should be looked into and considered. Its 7.02% gain from moving average of $2.68 has brought about a positive sentiment when calculated over the last 20 days. The market has allocated a beta of 2.5 to the stock. With the beta been greater than one, this implies that the company shares are theoretically more volatile than the market, something that the traders definitely are keeping an eye on.

Most of the analysts surveyed by Thomson/First Call think quite highly of Idera Pharmaceuticals, Inc. — 4 analysts rate the stock as a buy with another 0 rating it strong buy. There are 0 analysts who maintain a hold rating for the stock, with 0 giving it a sell rating. Analysts arrived at a 12-month price target of $12.5 on shares of Idera Pharmaceuticals, Inc. (NASDAQ:IDRA), which corresponds to 340.14% upside potential than its current market price of $2.87 and implies potential despite the recent drop in the price. However, their current target price has fallen from $19 a month ago and is down handily from the consensus target of $19 a quarter ago.

In the last five years, the EPS of the company has been roughly 10.1%. Though the percentage looks encouraging, extra headwinds are emerging as looking out over a next 5-year period, with analysts estimating that their earnings will decrease annually by 0%. The revenue of the company has risen at an average annualized rate of about 69.7 over the last five years. The company recently recorded a drop of 0%, but this figure is rather unattractive.

Let’s briefly check the hedge fund interest towards IDRA stock. Oxford Asset Management LLP added position in the company after it grew 10.4% or 169,787 shares of its common stock. The hedge fund now owns 187,445 shares worth $537,967, SEC documents show. Natixis shored up assets in the stock as 433379.8 shares have been purchased, increasing its stake by 6.1% to 459,816 shares which are currently valued at $1,319,672. In addition, Renaissance Technologies LLC recently reported that it now owns 253,150 shares making a total of $726,541 based on the recent price. This refelects a change of 43.4% in their ownership.