Heron Therapeutics, Inc. (NASDAQ:HRTX) Stock: Can It Get Better?

For the period that ended December 31, 2019, the short interest in Heron Therapeutics, Inc. (NASDAQ:HRTX) stock is on the up. The 2.36% rise could be an indication that investors and traders expect a drop in the share price, often as a result of a drop in the business’ fundamentals. The average brokerage opinion at 1.6 suggests disposing off these shares. Between December 13 and December 31, the total count of shorted shares totaled 18.6 million. That number was 428,610 more shares compared with the total of 18.17 million shares in the space of prior two weeks, which suggests more traders or funds are betting that the company stock will move down. The average daily volume for HRTX at the December 31st settlement surged to 1,033,771, versus 879,313 at the December 13th report. That led days to cover to move at 17.991, a 12.93% decrease compared to the 20.663818 days to cover recorded at the prior short interest data release.

In the recent trading session, Heron Therapeutics, Inc. (NASDAQ:HRTX) shares gained 4.88% or 1.03 points to close at $22.05 with a thin trading volume of 1.019 million shares. It opened the trading session at $21.05, the shares rose to $22.05 and dropped to $20.68, the range by which the price of stock traded the whole session. The company now has a market cap of $1.92 billion and currently has 91.42 million outstanding shares. Heron Therapeutics, Inc. (HRTX) stock has plunged -18.18 percent of market value in 21 trading days.

HRTX stock’s trailing 3-year beta is 1.4, meaning there will be a greater rate of return, although posing a higher risk. The part of a firm’s profit given to each outstanding share of regular stock was -$2.49 share in the trailing 52 weeks. The stock’s value fallen -10.55 percent year to date (YTD) compared to a decline of -19.15 percent in 52 week’s period. The firm’s shares are still trading -23.19 percent below its 1-year high of $28.70 and 40.59 percent up from 52-week low of $15.68. The average consensus ranking on the company is 1.6, on a ranging where 5 is equal to a consensus sell rating. In other words, the mean analyst recommendations are ranking this stock as a buy.

Heron Therapeutics, Inc. (HRTX) is most likely going to rise 85.49 percent in the coming 12 months, as per price target approximations compiled by finviz. Nevertheless, they have set the price target at a $70 as 12-month high price target. This represents a whopping 217.46 percent increase from the current trading price of shares. The 52-week median price target given by the analysts is $38, which means a return possibility of 72.34 percent in comparison with the closing price of the stock of $22.05 in recent trading session. The lowest price set for the stock is $26 which is just above 17.91 percent from HRTX share’s price at the end of session.

Past records have indicated that shares in Heron Therapeutics, Inc. rose on 14 different earnings reaction days and we have yet to see whether this trend will play out and remain in place when the company reports upcoming earnings. Investors will get the next hint of HRTX’s Q4 earnings on March 02. Analysts are predicting revenue to suffer decline of -10.6 percent to $25.78M in the financial fourth quarter, while EPS will soar by about -1.59 percent to -$0.62 per share. In the last quarter, it’s earnings of -$0.63 per share came worse than the -$0.47429, adjusted, expected by Thomson Reuters consensus estimate. Revenue for the quarter was $28.84M, topping the $26.93M analysts had expected. Earnings are seen to rise by 33.1 percent this year, 22.3 percent in the coming year.

Let’s take a glimpse at some insider activity at Heron Therapeutics, Inc. (NASDAQ:HRTX) and observe the pattern. The earliest insider trade happened on 11/29/2019. MANHARD KIMBERLY parted with a total of 24 thousand shares of the firm at average share price of $26. The total amount for the sale was set at $624 thousand. On completing this exchange, the Executive VP, Drug Development account balance was 0 thousand shares. The stock lost -15.58 percent from that insider sale. On 10/04/2019, TANG KEVIN C, Director, did a purchase of 285.71 thousand shares at a price of $17.5 per share. This increased 5 million shares to the insider’s fortune and the stock experienced a 25.43 percent rally in price since the news became public. This exchange saw 5.82 million shares get into the Director account.

On 10/03/2019, CEO Quart Barry D recorded a purchase transaction valued at $79.99 thousand. The purchase at $17.5 a share has added 4.57 thousand shares into the insider’s portfolio position. Meanwhile, shares price witnessed 25.43 percent increase since the transaction reporting date. The company insider is left with 94.65 thousand shares remaining in the account. POYHONEN JOHN, who works as EVP, Chief Commercial Officer at the company, performed a purchase of 5.14 thousand shares in a transaction worth $90 thousand. The acquisition recorded on 10/03/2019 was priced at $17.5 per share. The stock price soared 25.43 percent since the transaction. POYHONEN JOHN currently holds a stake of 18.14 thousand in HRTX stock which is worth $400.05 thousand after the insider buying.

The stock is lingering around the initial support level of $20.67. After this, the following support is at the zone of $20.32. Up until the time the HRTX stock hit levels beyond the current one, bulls should have no alarm. In terms of its momentum, the stock’s RSI hit 40.5 on the daily chart, and this may be a cause for concern. In case the price goes below $20.32 level on closing basis, there may be more profit booking with the stock growing weaker. Still, getting to the $21.37 level may cause a pull-back move approaching $21.72 mark.

Heron Therapeutics, Inc. (HRTX) shares are trading at a P/E ratio of -8.31 times earnings posted in the trailing 12 months. The industry HRTX deals with has an average P/E of 25.19. Its P/B ratio is standing at 7.29X compared to the 11.59 industry average. It is additionally sporting a 11.92 on the Price-to-Sales ratio, compared to the industry’s P/S average of 2.83. Heron Therapeutics, Inc. has a 59% gross profit margin.