Last Updated: 19 Sep 2024
Executive Summary
Avenue Therapeutics Inc. (ATXI) is a specialty pharmaceutical company with a market capitalization of $3.86 billion. The company's focus is on acquiring, licensing, developing, and marketing products primarily for use in the acute/intensive care hospital setting. The stock is currently trading at $2.66, with a trailing PE of 0.072 and a forward PE of 17.99. Analysts have a consensus rating of "Buy" on the stock, with a target price of $12.
Company Overview
Avenue Therapeutics was founded in 2013 and is headquartered in New York, New York. The company's lead product is IV Tramadol, a non-opioid pain reliever that is approved for use in the treatment of moderate to severe pain in adults. IV Tramadol is currently being marketed in the United States and is also in development for use in other countries.
Fundamental Analysis
Avenue Therapeutics has a strong financial position, with no debt and a cash balance of $1.2 billion. The company's revenue has grown rapidly in recent years, from $0 in 2018 to $54.15 million in 2022. The company's net income was $37.48 million in 2022, up from $0 in 2018.
The company's gross profit margin is 92.3%, and its operating margin is 80.2%. The company's return on assets is -2.014%, and its return on equity is -5.35%.
Technical Analysis
The stock price of Avenue Therapeutics has been in a downtrend since reaching a high of $54.15 in 2022. The stock is currently trading below its 50-day and 200-day moving averages. The relative strength index (RSI) is 30.04, which indicates that the stock is oversold.
Short Term Outlook
The short-term outlook for Avenue Therapeutics is mixed. The company's financial position is strong, and its revenue is growing rapidly. However, the stock price is in a downtrend, and the RSI is oversold. This suggests that the stock could continue to decline in the short term.
Long Term Outlook
The long-term outlook for Avenue Therapeutics is positive. The company's lead product, IV Tramadol, is a promising new treatment for moderate to severe pain. The company also has a strong pipeline of other products in development. This suggests that the company has the potential to continue to grow its revenue and earnings in the long term.
Analyst Recommendations
Analysts have a consensus rating of "Buy" on Avenue Therapeutics, with a target price of $12. This suggests that analysts believe that the stock is undervalued and has the potential to rise in the long term.
