Intra-Cellular Therapies, Inc. (NASDAQ:ITCI) Stock Is Heating Up. Time to Buy?

For the period that ended December 31, 2019, the short interest in Intra-Cellular Therapies, Inc. (NASDAQ:ITCI) stock is on the down. The 34.89% decline could be an indication that investors and traders expect a growth in the share price, often as a result of an advancement in the business’ fundamentals. The average brokerage opinion at 1.4 suggests disposing off these shares. Between December 13 and December 31, the total count of shorted shares totaled 8.37 million. That number was 4,483,727 less shares compared with the total of 12.85 million shares in the space of prior two weeks, which suggests more traders or funds are betting that the company stock will move up. The average daily volume for ITCI at the December 31st settlement surged to 9,140,673, versus 1,238,875 at the December 13th report. That led days to cover to move at 1, a 90.36% decrease compared to the 10.374418 days to cover recorded at the prior short interest data release.

In the recent trading session, Intra-Cellular Therapies, Inc. (NASDAQ:ITCI) shares gained 0.71% or 0.18 points to close at $26.08 with a thin trading volume of 1.1 million shares. It opened the trading session at $26, the shares rose to $26.22 and dropped to $25.35, the range by which the price of stock traded the whole session. The company now has a market cap of $1.66 billion and currently has 64.06 million outstanding shares. Intra-Cellular Therapies, Inc. (ITCI) stock has accumulated 111.43 percent of market value in 21 trading days.

ITCI stock’s trailing 3-year beta is 2, 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 -$2.69 share in the trailing 52 weeks. The stock’s value fallen -24.51 percent year to date (YTD) compared to a rise of 97.11 percent in 52 week’s period. The firm’s shares are still trading -40.12 percent below its 1-year high of $43.56 and 286.44 percent up from 52-week low of $6.75. The average consensus ranking on the company is 1.4, 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.

Intra-Cellular Therapies, Inc. (ITCI) is most likely going to rise 73.81 percent in the coming 12 months, as per price target approximations compiled by finviz. Nevertheless, they have set the price target at a $73 as 12-month high price target. This represents a whopping 179.91 percent increase from the current trading price of shares. The 52-week median price target given by the analysts is $43, which means a return possibility of 64.88 percent in comparison with the closing price of the stock of $26.08 in recent trading session. The lowest price set for the stock is $19 which is just above -27.15 percent from ITCI share’s price at the end of session.

Past records have indicated that shares in Intra-Cellular Therapies, Inc. rose on 13 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.

Let’s take a glimpse at some insider activity at Intra-Cellular Therapies, Inc. (NASDAQ:ITCI) and observe the pattern. The earliest insider trade happened on 01/09/2020. Satlin Andrew parted with a total of 11.57 thousand shares of the firm at average share price of $26.16. The total amount for the sale was set at $302.75 thousand. On completing this exchange, the EVP and Chief Medical Officer account balance was 11.34 thousand shares. The stock lost -0.5 percent from that insider sale. On 01/09/2020, Mates Sharon, Chairman, President & CEO, did a sale of 41.9 thousand shares at a price of $26.16 per share. This got rid of 1.1 million shares from the insider’s fortune and the stock experienced a -0.5 percent retreat in price since the news became public. This exchange saw 1.2 million shares get out from the Chairman, President & CEO account.

On 01/09/2020, EVP and General Counsel Halstead Michael recorded a sale transaction valued at $513.73 thousand. The sale at $26.16 a share has eliminated 19.64 thousand shares from the insider’s portfolio position. Meanwhile, shares price witnessed -0.5 percent decrease since the transaction reporting date. The company insider is left with 0.19 thousand shares remaining in the account. Hineline Lawrence J., who works as SVP of Finance CFO at the company, performed a sale of 19.64 thousand shares in a transaction worth $513.73 thousand. The disposal recorded on 01/09/2020 was priced at $26.16 per share. The stock price plunged -0.5 percent since the transaction. Hineline Lawrence J. currently holds a stake of 18.8 thousand in ITCI stock which is worth $490.3 thousand after the insider selling.

The stock is lingering around the initial support level of $25.3. After this, the following support is at the zone of $24.69. Up until the time the ITCI stock hit levels beyond the current one, bulls should have no alarm. In terms of its momentum, the stock’s RSI hit 56.06 on the daily chart, and this may be a cause for concern. In case the price goes below $24.69 level on closing basis, there may be more profit booking with the stock growing weaker. Still, getting to the $26.47 level may cause a pull-back move approaching $27.03 mark.

Intra-Cellular Therapies, Inc. (ITCI) shares are trading at a P/E ratio of -9.64 times earnings posted in the trailing 12 months. The industry ITCI deals with has an average P/E of 25.19. Its P/B ratio is standing at 6.74X compared to the 11.59 industry average.