Few Indicators Flashing Warning Signs for BioPharmX Corporation (BPMX)

Let’s reassess the active stocks with an eye toward BPMX stock. Just how should we respond to Friday’s drubbing? Is the mighty fruit now destined to decay? Or is this a mere bruising and nothing more? On 08 February, shares of BioPharmX Corporation (NYSE:BPMX) closed lower after a volatile session. The shares dropped -0.01 points or -4.28 percent at $0.1 with a light trade volume of 2.908 million shares. After opening the session at $0.11, the shares went as high as $0.11 and as low as $0.1, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $22.9 million and now has 222.33 million shares outstanding. BioPharmX Corporation (BPMX) stock has lost -20.65 percent of market value in 21 trading days.

BPMX stock has a trailing 3-year beta of 0.2, offering the possibility of a lower rate of return, but also posing less risk. The portion of a company’s profit allocated to each outstanding share of common stock was -$0.04 a share in the trailing twelve months. The stock’s value has fallen -4.54 percent year to date (YTD) against a decline of -41.64 percent in 12 month’s time. The company’s shares still trade -72.54 percent away from its 1-year high of $0.38 and 106 percent up from 52-week low of $0.05. The average consensus rating on the company is 0, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a buy.

BioPharmX Corporation (BPMX) will probably climb -100 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $1 price as 12-month high target. This represents a whopping 900 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $0.7, which represents a return potential of 600 percent when compared to the closing price of the stock of $0.1 on Friday, February 08. The lowest price target for the stock is $0.4 — slightly more than 300 percent from BPMX’s current share price.

History has shown that shares in BioPharmX Corporation have gone down on 8 different earnings reaction days and are predicted to add 0.1 percent when the company reports upcoming earnings.

Let’s take a look at some insider activity at BioPharmX Corporation (NYSE:BPMX) and see the pattern. The earliest insider trade took place on 01/23/2019. Krammer Anja B parted with a total of 115.87 thousand shares of company at average share price of $0.11. The total for the sales was set at $12.75 thousand. After this transaction, the Director account balance stood at 1.88 million shares. The stock lost -9.09 percent since that insider sale. On 10/22/2018, Morlock Stephen, Director, sold 1.13 million shares at a price per share of $0.18. This removed 202.5 thousand shares from the insider’s fortune and the stock saw a -44.44 percent retreat in value since the news became public. This transaction left 0 thousand shares in the Director account.

On 10/12/2018, Director Krammer Anja B performed a sale transaction worth $95 thousand. This sale at $0.19 each has eliminated 500 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded -47.37 percent decrease since the transaction was reported. The insider now is left with 2 million shares remaining in the account. Tierney David S, who performs the CEO job, bought 100 thousand shares for $20 thousand. The acquisition occurred on 09/19/2018 was priced at $0.2 per share. The share price plunged -50 percent since the reporting date. Tierney David S now left with a stake of 7.5 million BPMX stock worth $750 thousand after the insider buying.

The stock is currently hovering around the first support level of $0.1. Below this, the next support is placed in the zone of $0.09. Till the time, the BPMX stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 40.04 on daily chart, which may remain a cause for concern. If the price breaks below $0.09 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $0.11 mark may result into a pull-back move towards $0.11 level.

Further, it is sporting a 322.54 on the Price-to-Sales ratio. Compare this with the industry average P/S of 51.22.