Edesa Biotech Inc - EDSA Stock Forecast
Last 6 & 12 Months Return on Investment: 20.77% & -44.49%
Current Price: | Industry: Biotechnology | Market Cap: $0.0B | Next Earnings Release: 09 May 2024
Institutional Analysts' Forecast
Moderate Buy
Based on 8 Institutional Analyst Ratings where 2% are on Strong Buy, 62.50% on Moderate Buy, 12.50% on Hold, 0.00% on Sell and 0.00% on Strong Sell.
What is Analyst Rating & Why is it important?
An analyst rating is an assessment provided by financial analysts regarding the future performance of a stock or a security. These ratings are based on research conducted by financial experts who analyze the financials, market conditions, and potential risks associated with the company. Common ratings include "Buy," "Hold," "Sell," along with variations like "Strong Buy" or "Strong Sell." Some firms use numerical scales or other terminologies like "Outperform," "Market Perform," "Underperform," etc.
Why is Analyst Rating Important?
Investment Guidance: Analyst ratings provide investors with guidance on the potential performance of a stock relative to market conditions and future earnings expectations. These ratings can influence investment decisions by suggesting whether to buy, hold, or sell a stock.
Expert Insights: Since ratings are based on detailed analyses by financial experts who have deep knowledge of industry trends, market dynamics, and company fundamentals, they offer valuable insights that might not be readily apparent to the general public.
Market Sentiment: Analyst ratings can impact market sentiment and influence the market price of a stock. For example, a series of upgraded ratings can lead to increased investor interest and a rise in the stock’s price.
Performance Benchmarks: They help investors gauge a stock’s potential performance against its peers or the broader market. Analysts often compare companies within the same industry to determine which are likely to outperform.
Risk Assessment: Ratings can signal the level of risk associated with an investment. Higher-risk stocks might be rated as "Sell" due to unstable financials or poor growth prospects, while lower-risk stocks with stable earnings could receive a "Buy" or "Strong Buy" rating.
Analyst ratings, while useful, should not be the sole factor in making investment decisions. They represent opinions and can be subject to biases or based on outdated information if market conditions change rapidly. Therefore, they should be considered alongside other fundamental and technical analyses and aligned with personal financial goals and risk tolerance.
Insider Sentiment
Very Positive
Insider Sentiment is based on Insider Transactions. Insider sentiment gives investors a glimpse at what the executives are thinking about the stock price and valuation in the near future.
What is Insider Sentiment & Why is it important?
Insider sentiment refers to the general outlook or attitude of a company's insiders—such as executives, directors, and large shareholders—towards the future prospects of the company, as inferred from their trading activities in the company's stocks. This sentiment is often analyzed through the transactions reported by insiders, such as buys, sells, and option exercises.
Why is Insider Sentiment Important?
Indication of Confidence: Insider trading activity can serve as an indicator of insiders' confidence in the company's future. For example, a high volume of insider buying might suggest that insiders believe the stock is undervalued or that strong future performance is anticipated.
Additional Data Point for Investors: Investors often look at insider sentiment as one of many factors in their decision-making process. Positive insider sentiment, indicated by purchases, might encourage investors to also buy shares.
Early Warning System: Significant selling by insiders may raise a red flag for potential investors and could indicate underlying problems within the company that have not yet become public.
Alignment of Interests: Tracking whether insiders are buying or selling can help ensure that the interests of the executives and directors are aligned with those of the shareholders. If insiders hold a substantial amount of stock, they are likely to act in the best interests of the company.
Regulatory Compliance: Monitoring insider transactions is also important for regulatory reasons. It ensures transparency and fairness in the market, preventing illegal practices such as insider trading based on non-public information.
Despite its benefits, insider sentiment should not be the sole factor considered by investors. Insider trading data can be misinterpreted, and insiders might buy or sell stocks for reasons unrelated to company performance, such as personal financial needs. Therefore, it should be considered alongside other fundamental and technical analysis tools.
Insider Transactions
Filing Date: 2024-04-02
Change: 3253
Name: Nijhawan, Pardeep
Transaction Price: 0
Currency: CAD
Share: 28998
Source: sedi
Transaction Code: 56
Transaction Date: 2024-04-01
Filing Date: 2024-04-02
Change: 3253
Name: Nijhawan Pardeep
Transaction Price: 0
Share: 111063
Source: sec
Transaction Code: A
Transaction Date: 2024-04-01
Filing Date: 2024-03-25
Change: 5000
Name: Nijhawan Pardeep
Transaction Price: 4
Share: 341702
Source: sec
Transaction Code: P
Transaction Date: 2024-03-25
Filing Date: 2024-03-01
Change: 2765
Name: Nijhawan Pardeep
Transaction Price: 0
Share: 107810
Source: sec
Transaction Code: A
Transaction Date: 2024-03-01
What are Insider Transactions & Why are they important?
Insider transactions refer to the buying, selling, or other forms of trading of a company's stocks by its insiders—executives, directors, and other stakeholders who have unique access to the company’s confidential information. These transactions are required to be reported to regulatory authorities such as the SEC in the United States to ensure transparency and prevent insider trading based on non-public, material information.
Why are Insider Transactions Important?
Indicator of Corporate Health: Insider transactions are often viewed as a barometer for a company’s health and future prospects. For example, a high volume of insider buying might indicate that insiders believe the stock is undervalued or that positive developments are on the horizon.
Market Confidence: Investors may interpret active insider buying as a positive sign that those with the closest knowledge of the company are confident in its future. This can boost overall market confidence in the stock.
Risk Management: Conversely, significant insider selling, unless for well-disclosed reasons such as personal financial management, could signal potential internal issues or a perceived peak in the company’s valuation.
Regulatory Compliance: Monitoring insider transactions helps ensure compliance with securities laws and regulations designed to prevent illegal insider trading. It provides a level playing field for all investors and upholds market integrity.
Investment Strategy: Some investors use insider transaction patterns as part of their strategy, under the assumption that insiders might have better insights into the company’s future than ordinary investors. Following these patterns, however, should be done cautiously and as part of a broader investment analysis.
While insider transactions provide valuable insights, they need careful interpretation and should not be the sole basis for investment decisions. It’s crucial for investors to consider wider financial contexts and market conditions when evaluating the significance of insider behaviors.
Earning Surprises
Actual: -0.54
Estimate: -1.2342
Surprise: 0.6942
Surprise (%): 56.247
Period: 2023-12-31
Actual: -0.6
Estimate: -0.7208
Surprise: 0.1208
Surprise (%): 16.7592
Period: 2023-09-30
Actual: -0.7
Estimate: -1.2376
Surprise: 0.5376
Surprise (%): 43.4389
Period: 2023-06-30
Actual: -0.84
Estimate: -1.2376
Surprise: 0.3976
Surprise (%): 32.1267
Period: 2023-03-31
Actual: -0.91
Estimate: -1.3566
Surprise: 0.4466
Surprise (%): 32.9205
Period: 2022-12-31
Actual: -0.14
Estimate: -2.8203
Surprise: 2.6803
Surprise (%): 95.036
Period: 2022-09-30
Actual: -2.59
Estimate: -3.0702
Surprise: 0.4802
Surprise (%): 15.6407
Period: 2022-06-30
Actual: -2.31
Estimate: -2.618
Surprise: 0.308
Surprise (%): 11.7647
Period: 2022-03-31
What is Earnings/EPS Surprises & Why is it important?
Earnings or EPS (Earnings Per Share) Surprises occur when a company's actual reported earnings differ from analysts' consensus estimates. A positive surprise occurs when actual earnings are higher than estimates, while a negative surprise occurs when they are lower. Analysts use historical data, industry trends, and economic conditions to forecast a company's earnings, and these estimates are closely watched by investors.
Why are Earnings/EPS Surprises Important?
Market Reaction: Earnings surprises can significantly affect a company's stock price immediately after the announcement. Positive surprises often lead to an increase in stock price, while negative surprises can cause a decrease. This immediate impact reflects the market's response to new, substantive information about a company's financial health.
Investor Confidence: Consistent positive earnings surprises can enhance investor confidence and perception of the management's ability to forecast and execute business strategies effectively. Conversely, repeated negative surprises may erode trust and suggest operational or forecasting issues.
Performance Benchmark: Analysts and investors closely monitor earnings surprises as they benchmark a company's performance against market expectations. Surprises can lead to changes in analyst ratings and adjustments in market valuation, influencing subsequent investor behavior.
Future Expectations: Regular earnings surprises, either positive or negative, can lead to revisions in future earnings estimates. This can alter long-term investment perspectives and strategies, as the market recalibrates its expectations based on new performance indicators.
Corporate Strategy Insights: Analyzing the reasons behind earnings surprises can provide insights into a company's operational challenges or advantages. For instance, a positive surprise may indicate more efficient operations or capturing of a larger market share, while a negative surprise might highlight cost management issues or declining sales.
Earnings surprises are a fundamental metric used by investors to gauge a company’s short-term performance relative to market expectations. While important, they should be interpreted in the context of other financial and operational measures to fully understand a company’s overall health and trajectory.
EDSA's Financial Metrics
Eps Growth T T M Yoy
Eps Basic Excl Extra Items T T M
-2.6016
Net Interest Coverage T T M
-3.6833
Tbv Cagr5 Y
47.39
Eps Normalized Annual
-2.9292
Operating Margin T T M
-1609.09
Roe Rfy
-118.80999999999999
Cash Flow Per Share Annual
-2.1579
Net Profit Margin5 Y
-1517.67
What is the industry classification of Edesa Biotech Inc?
Edesa Biotech Inc operates within the Biotechnology sector. This classification helps investors understand the market segment the company competes in and its economic dynamics.
What is the current market capitalization of Edesa Biotech Inc?
As of the latest update, Edesa Biotech Inc's market capitalization is approximately $ 0.0B. Market capitalization reflects the total market value of a company's outstanding shares and gives an insight into the company's size and investment potential.
How has Edesa Biotech Inc's stock performed over the last six months?
Edesa Biotech Inc's stock has seen a return of 20.77% over the past six months. This performance metric is crucial for assessing the stock’s past trajectory and potential future trends.
What recent insider trading activity has been reported for Edesa Biotech Inc?
Insiders of Edesa Biotech Inc, such as executives and directors, have conducted several transactions recently. For example, Nijhawan, Pardeep sold/bought 28998 shares at a price of $0 per share on 2024-04-01. Monitoring insider transactions can provide clues about the internal sentiment towards the company’s future.
How do analysts currently rate Edesa Biotech Inc's stock?
Currently, Edesa Biotech Inc has received 5 "Buy" ratings, 0 "Sell" ratings, and 1 "Hold" ratings from analysts. Additionally, there are 2 "Strong Buy" recommendations. These ratings can help investors gauge market sentiment and future stock performance expectations.
What is the dividend yield of Edesa Biotech Inc?
Edesa Biotech Inc currently offers a dividend yield of%, with an annual payout of $ per share. Dividend yield is a significant factor for income-focused investors.
What does the financial health of Edesa Biotech Inc look like based on recent data?
Edesa Biotech Inc has demonstrated financial robustness with an EPS (Earnings Per Share) growth rate of % over the last five years, a return on equity (ROE) of -118.81%, and an operating margin of -1609.09%. These indicators are crucial for assessing the company's profitability and operational efficiency.
What are the latest earnings surprises from Edesa Biotech Inc?
In its most recent quarter, Edesa Biotech Inc reported an actual EPS of $ -0.54, which was a surprise of 56.247% above/below the consensus estimate of $ -1.2342. Earnings surprises can influence the stock price significantly in the short term.
Where can I find more detailed financial information about Edesa Biotech Inc?
For detailed financial data and historical performance metrics, investors are advised to refer to Edesa Biotech Inc's quarterly and annual reports filed with the SEC. These documents provide comprehensive insights into the company's financial health and business operations.
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