Travere Therapeutics Inc. (TVTX) is a biopharmaceutical company. The company is focused on the development and commercialization of therapies for people living with rare diseases. Its pipeline candidate, sparsentan, is an investigational product candidate for rare kidney disorders that often lead to end-stage kidney disease.
In its most recent earnings report, the company disappointed with earnings coming in at -$0.96, which was well below the consensus estimate of -$0.56. While earnings improved sequentially from the previous quarter, they were down year-over-year. The company also received disappointing news in May as the FDA won’t grant accelerated approval to its pipeline drug sparsentan.
The company does look good from a short-term debt perspective as it had $521 million in cash as of March, compared with no short-term debt. Unfortunately, its net profit margin is -113.2%. In terms of sales growth, the company has grown revenue an average of 10.4% per year over the past five years.
From a valuation standpoint, the company has a price-to-sales ratio of 3.9 which is well below the industry average. Its price-to-book ratio of 2.6 is also well below the industry average. The stock is down almost 44% for the year, but as you can see in the chart below, it has shown mixed performance since Mid-July.
Take a look at the 6-month chart of TVTX below with added notations:
Chart of TVTX provided by TradingView
TVTX has been declining for a while but has since fallen into a sideways trading range. While in its range, the stock has formed a resistance level at around $15.85 (red), and a level of support at $14.50 (green).
At some point, TVTX will have to either break the resistance or the support. The possible long position would be on a breakout above $15.85. The ideal short opportunity would be on a break below $14.50.
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TVTX shares were unchanged in premarket trading Tuesday. Year-to-date, TVTX has declined -43.79%, versus a 16.75% 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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