Ocular Therapeutix (NASDAQ:OCUL) Shares Gap Down on Disappointing 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 dissappointing 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.

The biopharmaceutical company reported ($0.39) EPS for the quarter, missing analysts' consensus estimates of ($0.35) by ($0.04). Ocular Therapeutix had a negative return on equity of 71.92% and a negative net margin of 382.51%. The business had revenue of $13.46 million during the quarter, compared to analysts' expectations of $13.12 million. During the same period in the prior year, the firm posted ($0.26) earnings per share. The firm's revenue for the quarter was down 17.7% on a year-over-year basis.

Wall Street Analyst Weigh In

A number of research analysts recently commented on OCUL shares. Needham & Company LLC boosted their price target on Ocular Therapeutix from $14.00 to $15.00 and gave the stock a "buy" rating in a report on Tuesday. Scotiabank reduced their price objective on Ocular Therapeutix from $22.00 to $20.00 and set a "sector outperform" rating on the stock in a research note on Wednesday. Finally, HC Wainwright reaffirmed a "buy" rating and issued a $15.00 price objective on shares of Ocular Therapeutix in a research note on Thursday, May 29th. Five investment analysts have rated the stock with a buy rating, According to data from MarketBeat.com, the company presently has an average rating of "Buy" and an average price target of $17.20.

Insider Transactions at Ocular Therapeutix

In other news, insider Pravin Dugel sold 21,219 shares of the business's stock in a transaction that occurred on Friday, May 23rd. The stock was sold at an average price of $7.18, for a total transaction 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. The trade was a 0.60% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Over the last 90 days, insiders sold 29,079 shares of company stock valued at $208,739. Insiders own 2.30% of the company's stock.

Hedge Funds Weigh In On Ocular Therapeutix

Several hedge funds have recently bought and sold shares of OCUL. Creative Planning lifted its holdings in shares of Ocular Therapeutix by 21.5% in the 2nd quarter. Creative Planning now owns 21,410 shares of the biopharmaceutical company's stock worth $199,000 after buying an additional 3,791 shares during the period. Profund Advisors LLC lifted its holdings in shares of Ocular Therapeutix by 43.9% in the 2nd quarter. Profund Advisors LLC now owns 22,906 shares of the biopharmaceutical company's stock worth $213,000 after buying an additional 6,993 shares during the period. Peregrine Capital Management LLC lifted its holdings in shares of Ocular Therapeutix by 1.7% in the 2nd quarter. Peregrine Capital Management LLC now owns 861,962 shares of the biopharmaceutical company's stock worth $7,999,000 after buying an additional 14,494 shares during the period. Teacher Retirement System of Texas lifted its holdings in shares of Ocular Therapeutix by 9.5% in the 2nd quarter. Teacher Retirement System of Texas now owns 27,799 shares of the biopharmaceutical company's stock worth $258,000 after buying an additional 2,417 shares during the period. Finally, Y Intercept Hong Kong Ltd purchased a new stake in shares of Ocular Therapeutix in the 2nd quarter worth $342,000. Institutional investors own 59.21% of the company's stock.

Ocular Therapeutix Stock Down 0.7%

The firm has a market capitalization of $2.12 billion, a PE ratio of -9.54 and a beta of 1.49. The company has a fifty day simple moving average of $10.17 and a two-hundred day simple moving average of $8.37. The company has a debt-to-equity ratio of 0.23, a quick ratio of 10.14 and a current ratio of 10.10.

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.