Last Updated: 07 Nov 2024
Executive Summary
Cyclo Therapeutics Inc. (CYTH) is a clinical-stage biotechnology company focused on developing cyclodextrin-based products for various diseases. The company has a market capitalization of $21.35 million and is currently trading at $0.74 per share.
Company Overview
Cyclo Therapeutics is headquartered in Gainesville, Florida, and was founded in 2016. The company's lead product candidate is Trappsol® Cyclo™, a cyclodextrin-based formulation of the immunosuppressive drug tramadol, which is being developed for the treatment of organ transplant rejection. Trappsol® Cyclo™ has shown promising results in preclinical studies and is currently in Phase 2 clinical trials.
Fundamental Analysis
Cyclo Therapeutics is a pre-revenue company with a history of losses. The company's revenue is expected to grow in the coming years as Trappsol® Cyclo™ progresses through clinical trials and is approved for commercial use. However, the company is not expected to become profitable in the near term.
The company's financial position is weak, with a negative EBITDA and book value. The company has a high level of debt and is dependent on external financing to fund its operations.
Technical Analysis
CYTH's stock price has been in a downtrend since reaching a high of $2.115 in January 2023. The stock is currently trading below its 50-day and 200-day moving averages, which is a bearish technical indicator.
The stock's relative strength index (RSI) is currently at 35.5, which is in oversold territory. This suggests that the stock is undervalued and could be due for a rebound.
Short Term Outlook
In the short term, CYTH's stock price is likely to remain volatile. The stock could rebound if the company reports positive news from its clinical trials or if there is a general market rally. However, the stock could also continue to decline if the company reports negative news or if the market continues to sell off.
Long Term Outlook
In the long term, CYTH's stock price is likely to be driven by the success of Trappsol® Cyclo™. If the drug is approved for commercial use and is successful in the market, the company's stock price could rise significantly. However, if the drug fails to meet expectations, the company's stock price could decline.
Analyst Recommendations
Analysts are currently divided on CYTH's stock. One analyst has a buy rating on the stock, while two analysts have hold ratings. The average analyst target price is $0.95.
