Last Updated: 17 Oct 2024
Executive Summary
Ontrak Inc. (OTRK) is a virtualized outpatient healthcare treatment company that provides telehealth and in-person intervention services to health plans and other third-party payers. The company's latest stock price is $2.37, and its market capitalization is $7.67 million. Ontrak has been experiencing revenue growth in recent quarters, but its profitability remains a concern. The company's trailing price-to-earnings (PE) ratio of 0.327 indicates that it is undervalued relative to its peers. However, its high beta of 2.574 suggests that it is also more volatile than the overall market.
Company Overview
Ontrak was founded in 2009 and is headquartered in Santa Monica, California. The company's mission is to provide affordable, accessible, and effective healthcare to patients with chronic conditions. Ontrak's services include telehealth visits, medication management, lifestyle coaching, and care coordination.
Fundamental Analysis
Ontrak's revenue has grown steadily in recent quarters. In the second quarter of 2024, the company reported revenue of $12.38 million, up 0.172% year-over-year. However, Ontrak's profitability remains a concern. The company's EBITDA loss was $14.88 million in the second quarter of 2024, and its net loss was $7.35 million.
Ontrak's financial ratios are also weak. The company's trailing PE ratio of 0.327 is well below the industry average of 20.95. This indicates that Ontrak is undervalued relative to its peers. However, the company's high beta of 2.574 suggests that it is also more volatile than the overall market.
Technical Analysis
Ontrak's stock price has been in a downtrend since early 2023. The stock is currently trading below its 50-day and 200-day moving averages. This indicates that the stock is in a bearish trend.
The relative strength index (RSI) for Ontrak is currently at 30. This indicates that the stock is oversold. This could be a sign that the stock is due for a rebound.
Short Term Outlook
The short-term outlook for Ontrak is mixed. The company's revenue is growing, but its profitability remains a concern. The stock price is currently in a downtrend, but it is oversold. This could be a sign that the stock is due for a rebound.
Long Term Outlook
The long-term outlook for Ontrak is positive. The company's services are in high demand, and the company is well-positioned to benefit from the growing trend towards telehealth. Ontrak's stock price is currently undervalued, and the company has a strong track record of growth. This suggests that the stock has the potential to generate significant returns for investors over the long term.
Analyst Recommendations
Analysts are mixed on Ontrak. One analyst has a buy rating on the stock, while another has a hold rating. The average analyst target price for Ontrak is $45. This suggests that analysts believe that the stock has the potential to generate significant returns for investors over the long term.
