Ocular Therapeutix (NASDAQ:OCUL) Stock Falls 22.3% - Here's Why

Key Points

• Ocular Therapeutix shares fell 22.3% to about $7.50, with trading volume substantially below the stock’s average daily volume.
• Despite the selloff, analysts remain broadly positive: 11 rate the stock a Buy, with a consensus “Moderate Buy” rating and an average price target of $25.75.
• The company reported quarterly revenue of $13.47 million and an adjusted loss of $0.35 per share, while institutional investors—including BlackRock—held or expanded positions; institutions own 59.21% of the stock.

Ocular Therapeutix, Inc. (NASDAQ:OCUL - Get Free Report)'s share price traded down 22.3% on Monday. The company traded as low as $8.21 and last traded at $7.4960. Approximately 1,113,832 shares were traded during trading, a decline of 71% from the average daily volume of 3,897,196 shares. The stock had previously closed at $9.65.

Analyst Ratings Changes

OCUL has been the topic of several research analyst reports. HC Wainwright restated a "buy" rating and set a $25.00 target price on shares of Ocular Therapeutix in a research report on Wednesday, September 16th. Zacks Research upgraded Ocular Therapeutix from a "strong sell" rating to a "hold" rating in a report on Wednesday, August 12th. Chardan Capital reissued a "buy" rating and issued a $23.00 price target on shares of Ocular Therapeutix in a research note on Wednesday, September 16th. Robert W. Baird increased their price target on Ocular Therapeutix from $24.00 to $30.00 and gave the stock an "outperform" rating in a report on Thursday, June 18th. Finally, Wall Street Zen upgraded shares of Ocular Therapeutix from a "sell" rating to a "hold" rating in a research note on Saturday, August 8th. Eleven investment analysts have rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $25.75.

Ocular Therapeutix Price Performance

The business has a 50-day moving average of $9.92 and a 200 day moving average of $9.35. The company has a current ratio of 13.10, a quick ratio of 13.03 and a debt-to-equity ratio of 0.14. The firm has a market capitalization of $1.71 billion, a P/E ratio of -5.51 and a beta of 0.97.

Ocular Therapeutix (NASDAQ:OCUL - Get Free Report) last issued its quarterly earnings data on Monday, August 3rd. The biopharmaceutical company reported ($0.35) earnings per share for the quarter, beating the consensus estimate of ($0.40) by $0.05. Ocular Therapeutix had a negative return on equity of 59.89% and a negative net margin of 579.10%.The business had revenue of $13.47 million for the quarter, compared to analysts' expectations of $13.20 million. During the same period last year, the business earned ($0.39) EPS. The business's revenue was down .1% on a year-over-year basis. On average, sell-side analysts predict that Ocular Therapeutix, Inc. will post -1.47 earnings per share for the current fiscal year.

Insider Activity

In other news, insider Jeffrey S. Heier sold 3,296 shares of the firm's stock in a transaction on Monday, August 24th. The shares were sold at an average price of $10.78, for a total transaction of $35,530.88. Following the sale, the insider owned 318,326 shares in the company, valued at approximately $3,431,554.28. This trade represents a 1.02% decrease in their position. The transaction was disclosed in a filing with the SEC, which can be accessed through this link. 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 Peter Kaiser sold 3,035 shares of Ocular Therapeutix stock in a transaction on Monday, August 24th. The stock was sold at an average price of $10.77, for a total transaction of $32,686.95. Following the sale, the insider directly owned 264,378 shares of the company's stock, valued at $2,847,351.06. This represents a 1.13% decrease in their ownership of the stock. 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 sold 29,877 shares of company stock worth $321,827 in the last three months. Corporate insiders own 3.10% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors have recently added to or reduced their stakes in OCUL. BlackRock Inc. bought a new stake in Ocular Therapeutix during the second quarter worth about $190,278,000. Summer Road LLC raised its holdings in shares of Ocular Therapeutix by 6.9% during the 1st quarter. Summer Road LLC now owns 11,879,825 shares of the biopharmaceutical company's stock valued at $100,622,000 after buying an additional 771,270 shares in the last quarter. Avoro Capital Advisors LLC lifted its position in Ocular Therapeutix by 5.1% in the 4th quarter. Avoro Capital Advisors LLC now owns 10,777,777 shares of the biopharmaceutical company's stock worth $130,842,000 after buying an additional 527,777 shares during the last quarter. Octagon Capital Advisors LP lifted its position in Ocular Therapeutix by 20.7% in the 1st quarter. Octagon Capital Advisors LP now owns 3,166,600 shares of the biopharmaceutical company's stock worth $26,821,000 after buying an additional 543,000 shares during the last quarter. Finally, Commodore Capital LP purchased a new stake in Ocular Therapeutix in the first quarter worth approximately $21,810,000. Institutional investors own 59.21% of the company's stock.

Ocular Therapeutix Company Profile

Ocular Therapeutix, Inc is a biopharmaceutical company focused on developing and commercializing therapies for diseases and conditions affecting the eye. The company uses its proprietary hydrogel-based technology to design sustained-release treatments intended to deliver medication to ocular tissues over extended periods and potentially reduce the need for frequent eye drops or injections.

Its commercial product, Dextenza, is a resorbable intracanalicular insert that delivers dexamethasone to the ocular surface for the treatment of inflammation and pain following ophthalmic surgery.

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