What’s Up With All The Volatility in Foamix Pharmaceuticals Ltd. (FOMX)?

Looking into the technicals, Foamix Pharmaceuticals Ltd. (NASDAQ:FOMX) has scored 72% Sell indication. The stock is also flashing a Sell from the Barchart TrendSpotter trading system. Traders hoping to speculate on the FOMX’s short-term trajectory should know that short terms indicators for the stock averaged 60% Sell with an average daily trading volume over the past 20 days at 218440 shares. FOMX stock has overall a 0.75% Sell signal considering medium term indicators and the 50-day average daily volume remained almost 353650 shares. It’s also worth noting that the stock, whose average daily volume over the 100 days prior to this writing was 558985 shares, is 67% Sell on the basis of long term indicators.

The share price is currently staying around the first support level of $3.49. Below this, the next support is placed in the zone of $3.42. Till the time, the FOMX stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 43 on daily chart, which may remain a cause for concern. If the price breaks below $3.42 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $3.59 mark may result into a pull-back move towards $3.62 level.

Foamix Pharmaceuticals Ltd. (FOMX) is projected to climb by 336.62 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $30 price as 12-month high target. This represents a whopping 745.07 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $12, which represents a return potential of 238.03 percent when compared to the closing price of the stock of $3.55 on Monday, February 11. The lowest price target for the stock is $9 — slightly more than 153.52 percent from FOMX’s current share price.

Here’s a rundown of insider trading activity for sense of Foamix Pharmaceuticals Ltd. (NASDAQ:FOMX). The earliest insider trade took place on 12/03/2018. Domzalski David parted with a total of 0.07 thousand shares of company at average share price of $4.05. The total for the sales was set at $0.28 thousand. After this transaction, the CEO account balance stood at 146.41 thousand shares. The stock lost -12.35 percent since that insider sale. On 11/28/2018, Schwartz Aharon, Director, purchased 112.2 thousand shares at a price per share of $3.9. This added 437.58 thousand shares to the insider’s fortune and the stock saw a -8.97 percent retreat in value since the news became public. This transaction left 112.2 thousand shares in the Director account. On 11/19/2018, VP Regulatory Howard Alvin D performed a sale transaction worth $13.16 thousand. This sale at $3.9 each has eliminated 3.38 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded -8.97 percent decrease since the transaction was reported. The insider now is left with 38.41 thousand shares remaining in the account. Domzalski David, who performs the CEO job, sold 5.04 thousand shares for $19.64 thousand. The disposal occurred on 11/19/2018 was priced at $3.9 per share. The share price plunged -8.97 percent since the reporting date. Domzalski David now left with a stake of 146.48 thousand FOMX stock worth $519.99 thousand after the insider selling.

FOMX shares accumulated 0.02 points or 0.57 percent on Monday to $3.55 with a light trade volume of 1.863 million shares. After opening the session at $3.5037, the shares went as high as $3.56 and as low as $3.46, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $191 million and now has 53.82 million shares outstanding. Foamix Pharmaceuticals Ltd. (FOMX) stock has lost -10.13 percent of market value in 21 trading days.

Analysts at BofA/Merrill, assumed coverage of Foamix Pharmaceuticals Ltd. (NASDAQ:FOMX) with Buy recommendation, according to their opinion released on December 12. H.C. Wainwright analysts again handed out a Buy rating to FOMX stock but they lifted target price for the shares in a flash note to investors on September 12. The price target has been raised from $12 to $14. H.C. Wainwright, analysts launched coverage of FOMX stock with a Buy rating, according to their flash note to investors on September 12.

FOMX stock has a trailing 3-year beta of 1.73, 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 -$2 a share in the trailing twelve months. The stock’s value has fallen -1.11 percent year to date (YTD) against a decline of -43.65 percent in 12 month’s time. The company’s shares still trade -53.29 percent away from its 1-year high of $7.60 and 10.59 percent up from 52-week low of $3.21. The average consensus rating on the company is 1.8, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a buy.

Shares of Foamix Pharmaceuticals Ltd. (FOMX) are trading at a P/E ratio of 0 times earnings reported for the past 12 months. The industry FOMX operates in has an average P/E of 87.64. Its P/E ratio went as low as 0X and as high as 0 over the 5-year span. Further, it is sporting a 50.28 on the Price-to-Sales ratio. Compare this with the industry average P/S of 51.22. 99.9 percent is the gross profit margin for Foamix Pharmaceuticals Ltd. and operating margin sits at 0 percent. Along with this, the net profit margin is 0 percent.

FOMX will be declaring its Q4 financial results on February 27. Analysts are forecasting revenue to suffer decline of -1.2 percent to $1.03M in the next fiscal quarter, while earnings are seen soaring by nearly -48.94 percent to -$0.24 per share. History has shown that shares in Foamix Pharmaceuticals Ltd. have gone down on 9 different earnings reaction days and are predicted to add 0.03 percent when the company reports upcoming earnings. In last reported earnings results, it earned -$0.38 per share, better than the -$0.47, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $870000, worse than the $1.07M analysts expected. Earnings are estimated to increase by -93.4 percent this year, 13 percent next year and continue to increase by 0 percent annually for the next 5 years.