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

Key Points

• Shares fell after disappointing quarterly results, opening at $6.25 versus the prior close of $6.59 and last trading at $6.44.
• Ocular Therapeutix reported a loss of $0.42 per share, missing the $0.36 loss consensus; revenue of $12.87 million also came in below estimates and declined 11.5% year over year.
• Analysts’ overall rating remains Moderate Buy, with an average price target of $23.33, despite mixed individual ratings.

Ocular Therapeutix, Inc. (NASDAQ:OCUL - Get Free Report)'s share price gapped down before the market opened on Monday following a dissappointing earnings announcement. The stock had previously closed at $6.59, but opened at $6.25. Ocular Therapeutix shares last traded at $6.44, with a volume of 546,117 shares.

The biopharmaceutical company reported ($0.42) EPS for the quarter, missing the consensus estimate of ($0.36) by ($0.06). Ocular Therapeutix had a negative net margin of 579.10% and a negative return on equity of 59.89%. The business had revenue of $12.87 million for the quarter, compared to analysts' expectations of $14.27 million. During the same period last year, the business earned ($0.38) earnings per share. The company's quarterly revenue was down 11.5% on a year-over-year basis.

Wall Street Analyst Weigh In

Several equities analysts have issued reports on OCUL shares. Wall Street Zen upgraded shares of Ocular Therapeutix from a "sell" rating to a "hold" rating in a research note on Saturday, August 8th. Weiss Ratings reiterated a "sell (d-)" rating on shares of Ocular Therapeutix in a research note on Thursday, October 15th. Chardan Capital reiterated a "buy" rating and issued a $23.00 price target on shares of Ocular Therapeutix in a research note on Friday, October 2nd. HC Wainwright reissued a "buy" rating on shares of Ocular Therapeutix in a report on Tuesday, October 20th. Finally, Zacks Research upgraded shares of Ocular Therapeutix from a "strong sell" rating to a "hold" rating in a research report on Wednesday, August 12th. One equities research analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat, the company currently has a consensus rating of "Moderate Buy" and an average target price of $23.33.

Insider Transactions at Ocular Therapeutix

In other Ocular Therapeutix news, insider Pravin Dugel sold 21,649 shares of the stock in a transaction dated Monday, August 24th. The stock was sold at an average price of $10.77, for a total value of $233,159.73. Following the transaction, the insider owned 2,525,429 shares of the company's stock, valued at approximately $27,198,870.33. This represents a 0.85% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Jeffrey Heier sold 10,869 shares of the stock in a transaction dated Friday, October 2nd. The shares were sold at an average price of $7.05, for a total value of $76,626.45. Following the completion of the transaction, the insider directly owned 307,457 shares in the company, valued at approximately $2,167,571.85. This represents a 3.41% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold a total of 62,720 shares of company stock worth $556,247 in the last three months. 3.10% of the stock is owned by insiders.

Hedge Funds Weigh In On Ocular Therapeutix

Institutional investors and hedge funds have recently made changes to their positions in the business. Deltec Asset Management LLC boosted its holdings in Ocular Therapeutix by 6.0% during the 3rd quarter. Deltec Asset Management LLC now owns 2,623,597 shares of the biopharmaceutical company's stock valued at $20,123,000 after acquiring an additional 147,400 shares during the period. Bank of America Corp DE purchased a new stake in Ocular Therapeutix in the second quarter worth $5,099,000. Dimensional Fund Advisors LP purchased a new stake in Ocular Therapeutix in the first quarter worth $5,491,000. The Manufacturers Life Insurance Company lifted its position in shares of Ocular Therapeutix by 145.9% during the first quarter. The Manufacturers Life Insurance Company now owns 227,808 shares of the biopharmaceutical company's stock worth $1,930,000 after purchasing an additional 135,160 shares during the last quarter. Finally, Second Line Capital LLC lifted its position in shares of Ocular Therapeutix by 20.9% during the second quarter. Second Line Capital LLC now owns 638,640 shares of the biopharmaceutical company's stock worth $6,271,000 after purchasing an additional 110,350 shares during the last quarter. Hedge funds and other institutional investors own 59.21% of the company's stock.

Ocular Therapeutix Stock Performance

The firm has a market capitalization of $1.40 billion, a P/E ratio of -4.49 and a beta of 1.22. The company has a debt-to-equity ratio of 0.14, a current ratio of 13.10 and a quick ratio of 13.03. The firm has a 50-day moving average price of $8.40 and a two-hundred day moving average price of $9.02.

Ocular Therapeutix Company Profile

Ocular Therapeutix, Inc is a biopharmaceutical company focused on developing and commercializing treatments for eye diseases and conditions. Based in Bedford, Massachusetts, the company uses its proprietary hydrogel-based technology to deliver medicines to the eye over time.

Its marketed product, DEXTENZA, is a corticosteroid insert placed in the tear duct by an eye-care professional to treat inflammation and pain following ophthalmic surgery. Ocular Therapeutix also develops investigational therapies for retinal diseases and other eye conditions, including treatments designed for sustained drug delivery.

The company was founded in 2006 and serves the U.S.

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