Ocular Therapeutix (NASDAQ:OCUL) Shares Gap Down Following Weak Earnings

Key Points

• Ocular Therapeutix shares dropped significantly, opening at $11.21 after closing at $12.35, following a reported loss of ($0.39) EPS, which missed the consensus estimate.
• The company's quarterly revenue fell 17.7% year-over-year, with a negative return on equity of 59.92% and a negative net margin of 323.09%.
• Despite the poor earnings report, several analysts maintain a "buy" rating for Ocular Therapeutix, with a consensus target price of $17.33 and six investment analysts rating it a buy.

Ocular Therapeutix, Inc. (NASDAQ:OCUL - Get Free Report)'s stock price gapped down before the market opened on Tuesday following a weaker than expected earnings announcement. The stock had previously closed at $12.35, but opened at $11.21. Ocular Therapeutix shares last traded at $11.34, with a volume of 558,460 shares traded.

The biopharmaceutical company reported ($0.39) EPS for the quarter, missing the consensus estimate of ($0.35) by ($0.04). Ocular Therapeutix had a negative return on equity of 59.92% and a negative net margin of 323.09%. The firm's quarterly revenue was down 17.7% on a year-over-year basis. During the same period in the prior year, the firm posted ($0.26) EPS.

Analysts Set New Price Targets

Several brokerages have recently commented on OCUL. Needham & Company LLC decreased their target price on Ocular Therapeutix from $15.00 to $14.00 and set a "buy" rating on the stock in a report on Tuesday, May 6th. HC Wainwright reiterated a "buy" rating and issued a $15.00 price target on shares of Ocular Therapeutix in a report on Thursday, May 29th. Finally, William Blair started coverage on Ocular Therapeutix in a report on Tuesday, April 8th. They issued an "outperform" rating on the stock. Six investment analysts have rated the stock with a buy rating, According to MarketBeat, the company has a consensus rating of "Buy" and a consensus target price of $17.33.

Insider Activity

In other Ocular Therapeutix news, insider Pravin Dugel sold 21,219 shares of the stock in a transaction dated Friday, May 23rd. The stock was sold at an average price of $7.18, for a total value of $152,352.42. Following the transaction, the insider owned 3,499,099 shares of the company's stock, valued at approximately $25,123,530.82. This represents a 0.60% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through the SEC website. Also, Director Richard L. Md Lindstrom bought 10,000 shares of the business's stock in a transaction on Thursday, May 8th. The stock was bought at an average cost of $6.96 per share, for a total transaction of $69,600.00. Following the purchase, the director directly owned 172,704 shares of the company's stock, valued at approximately $1,202,019.84. This trade represents a 6.15% increase in their position. The disclosure for this purchase can be found here. In the last quarter, insiders sold 29,079 shares of company stock worth $208,739. 2.30% of the stock is owned by company insiders.

Hedge Funds Weigh In On Ocular Therapeutix

Several hedge funds have recently added to or reduced their stakes in the stock. Mirae Asset Global Investments Co. Ltd. lifted its stake in Ocular Therapeutix by 17.0% in the second quarter. Mirae Asset Global Investments Co. Ltd. now owns 6,154 shares of the biopharmaceutical company's stock valued at $57,000 after buying an additional 893 shares during the period. Trust Co. of Vermont raised its position in shares of Ocular Therapeutix by 16.1% during the second quarter. Trust Co. of Vermont now owns 7,200 shares of the biopharmaceutical company's stock worth $67,000 after purchasing an additional 1,000 shares during the period. Nisa Investment Advisors LLC raised its position in shares of Ocular Therapeutix by 62.9% during the second quarter. Nisa Investment Advisors LLC now owns 3,604 shares of the biopharmaceutical company's stock worth $33,000 after purchasing an additional 1,392 shares during the period. Hsbc Holdings PLC raised its position in shares of Ocular Therapeutix by 8.1% during the first quarter. Hsbc Holdings PLC now owns 19,573 shares of the biopharmaceutical company's stock worth $141,000 after purchasing an additional 1,472 shares during the period. Finally, Teacher Retirement System of Texas raised its position in shares of Ocular Therapeutix by 9.5% during the second quarter. Teacher Retirement System of Texas now owns 27,799 shares of the biopharmaceutical company's stock worth $258,000 after purchasing an additional 2,417 shares during the period. Institutional investors and hedge funds own 59.21% of the company's stock.

Ocular Therapeutix Stock Performance

The company has a market cap of $1.84 billion, a price-to-earnings ratio of -10.07 and a beta of 1.49. The company has a debt-to-equity ratio of 0.26, a current ratio of 10.22 and a quick ratio of 10.14. The stock has a 50-day moving average price of $9.81 and a 200 day moving average price of $8.26.

About Ocular Therapeutix

Ocular Therapeutix, Inc, a biopharmaceutical company, focuses on the formulation, development, and commercialization of therapies for diseases and conditions of the eye using its bioresorbable hydrogel-based formulation technology in the United States. The company markets DEXTENZA, a dexamethasone ophthalmic insert to treat post-surgical ocular inflammation and pain following ophthalmic surgery, as well as allergic conjunctivitis.

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