TherapeuticsMD, Inc. (TXMD) Insider Trading Is Uncovering Many Things

If you can handle volatility, TherapeuticsMD, Inc. (NASDAQ:TXMD) is the stock to watch now. The stock closed lower on 08 February. The shares dropped -0.2 points or -3.68 percent at $5.23 with a light trade volume of 2.96 million shares. After opening the session at $5.38, the shares went as high as $5.38 and as low as $5.15, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $1.29 billion and now has 246.98 million shares outstanding. TherapeuticsMD, Inc. (TXMD) stock has gained 17.26 percent of market value in 21 trading days.

TXMD stock has a trailing 3-year beta of 2.07, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was -$0.52 a share in the trailing twelve months. The stock’s value has surged 37.27 percent year to date (YTD) against a decline of -4.56 percent in 12 month’s time. The company’s shares still trade -31.72 percent away from its 1-year high of $7.66 and 49.22 percent up from 52-week low of $3.51. 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.

TherapeuticsMD, Inc. (TXMD) will probably climb 205.93 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $27 price as 12-month high target. This represents a whopping 416.25 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $14, which represents a return potential of 167.69 percent when compared to the closing price of the stock of $5.23 on Friday, February 08. The lowest price target for the stock is $5 — slightly more than -4.4 percent from TXMD’s current share price.

History has shown that shares in TherapeuticsMD, Inc. have gone down on 9 different earnings reaction days and are predicted to add 0.06 percent when the company reports upcoming earnings. Investors will get their next glimpse of TXMD’s Q4 earnings on February 21. Analysts are forecasting revenue to climb 21.2 percent to $5M in the fiscal fourth quarter, while earnings are seen soaring by nearly 70 percent to -$0.17 per share. It earned -$0.16 per share, better than the -$0.21, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $3.47M, worse than the $4.43M analysts expected. Earnings are estimated to increase by 18.3 percent this year, 3.4 percent next year and continue to increase by 15 percent annually for the next 5 years.

Let’s take a look at some insider activity at TherapeuticsMD, Inc. (NASDAQ:TXMD) and see the pattern. The earliest insider trade took place on 12/20/2018. Finizio Robert G parted with a total of 184.91 thousand shares of company at average share price of $3.66. The total for the sales was set at $676.77 thousand. After this transaction, the CEO account balance stood at 20.37 million shares. The stock grew 42.9 percent since that insider sale. On 12/18/2018, Milligan John C.K. Iv, President/Secretary, sold 258.13 thousand shares at a price per share of $3.69. This removed 952.49 thousand shares from the insider’s fortune and the stock saw a 41.73 percent rally in value since the news became public. This transaction left 5.46 million shares in the President/Secretary account.

On 12/13/2018, Director Bernick Brian performed a sale transaction worth $760.74 thousand. This sale at $4.15 each has eliminated 183.31 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded 26.02 percent increase since the transaction was reported. The insider now is left with 6.61 million shares remaining in the account. Finizio Robert G, who performs the CEO job, sold 184 thousand shares for $844.56 thousand. The disposal occurred on 12/07/2018 was priced at $4.59 per share. The share price soared 13.94 percent since the reporting date. Finizio Robert G now left with a stake of 20.37 million TXMD stock worth $106.52 million after the insider selling.

The stock is currently hovering around the first support level of $5.14. Below this, the next support is placed in the zone of $5.05. Till the time, the TXMD stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 53.28 on daily chart, which may remain a cause for concern. If the price breaks below $5.05 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $5.36 mark may result into a pull-back move towards $5.49 level.

Further, it is sporting a 85.54 on the Price-to-Sales ratio. Compare this with the industry average P/S of 7.55. 84.3 percent is the gross profit margin for TherapeuticsMD, Inc. and operating margin sits at 0 percent. Along with this, the net profit margin is 0 percent.