Ocugen Inc. (OCGN) is a clinical-stage biopharmaceutical company. It is focused on discovering, developing and commercializing a pipeline of innovative therapies that address rare and underserved eye diseases.
The company has in-licensed Covaxin, a whole-virion vaccine for Covid-19 that may have advantages over current vaccines in use today, but the earliest it will be approved is in the second quarter of 2023.
OCGN has a very high current ratio of 12.0 and a debt-to-equity ratio of 0.1. The company has had negative recent earnings and estimates for more negative earnings until 2022.
Based on its price-to-book ratio of 29.4, the stock looks overvalued compared to the industry average. The stock’s performance has been very volatile this year as shown in the chart below.
Take a look at the 1-year chart of OCGN below with added notations:
Chart of OCGN provided by TradingView
After surging in a big way back in February, OCGN has repeatedly bounced on top of a key level of support at $6 (green). The stock appears to be falling back down to that support again, and another rally could start from there.
However, a break of $6 could mean much lower prices for the stock. Therefore, a trader could enter a short trade under $6 if the stock were to break below that support level.
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OCGN shares rose $0.02 (+0.29%) in premarket trading Wednesday. Year-to-date, OCGN has gained 279.78%, versus a 18.37% rise in the benchmark S&P 500 index during the same period.
About the Author: Christian Tharp
I am an expert stock market coach having helped over 4000 beginner and advanced traders & investors from around the world take control of their financial futures. I also write stock market related articles for the Adam Mesh Trading Group and Yolo Publishing. More...
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