Are Short-Sellers Right About Precipio, Inc. (PRPO)?

Bulls have made their way to Precipio, Inc. (NASDAQ:PRPO) as short interest on PRPO stock has fallen by 823,311 shares during the most recent reporting period. The most recent short interest data has been released for the January 31st settlement date, which shows a decrease in total short interest for PRPO, to 670,802, a retreat of 55.1% since January 15th. Average daily volume for Precipio, Inc. at the January 31st settlement plunged to 1,502,323, as compared to 6,104,817 at the January 15th report. That brought days to cover to 1, a 0% decrease from the 1 days to cover recorded at the prior short interest data release.

The stock is currently hovering around the first support level of $0.16. Below this, the next support is placed in the zone of $0.15. Till the time, the PRPO stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 41.31 on daily chart, which may remain a cause for concern. If the price breaks below $0.15 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $0.18 mark may result into a pull-back move towards $0.2 level.

On 13th of February, Precipio, Inc. (NASDAQ:PRPO) shares ended higher after a volatile session. The shares accumulated 0.01 points or 4.41 percent at $0.17 with a heavy trade volume of 1.857 million shares. After opening the session at $0.1619, the shares went as high as $0.185 and as low as $0.1615, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $5.37 million and now has 31.52 million shares outstanding. Precipio, Inc. (PRPO) stock has lost -23.96 percent of market value in 21 trading days.

PRPO stock has a trailing 3-year beta of 1.23, 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 -$2.03 a share in the trailing twelve months. The stock’s value has surged 10.65 percent year to date (YTD) against a decline of -79.95 percent in 12 month’s time. The company’s shares still trade -90.26 percent away from its 1-year high of $1.75 and 13.6 percent up from 52-week low of $0.15. 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.

Shares of Precipio, Inc. (PRPO) are trading at a P/E ratio of 0 times earnings reported for the past 12 months. The industry PRPO operates in has an average P/E of 69.44. Its P/E ratio went as low as 0X and as high as 0 over the 5-year span. Further, it is sporting a 1.73 on the Price-to-Sales ratio. Compare this with the industry average P/S of 49.51. 16.5 percent is the gross profit margin for Precipio, Inc. and operating margin sits at 0 percent. Along with this, the net profit margin is 0 percent.

Let’s take a look at some insider activity at Precipio, Inc. (NASDAQ:PRPO) and see the pattern. The earliest insider trade took place on 08/28/2018. Kirk Randal J parted with a total of 24.6 thousand shares of company at average share price of $0.41. The total for the sales was set at $10.09 thousand. After this transaction, the 10% Owner account balance stood at 1.33 million shares. The stock lost -58.54 percent since that insider sale. On 06/08/2017, Kirk Randal J, 10% Owner, sold 1.98 million shares at a price per share of $1. This removed 1.98 million shares from the insider’s fortune and the stock saw a -83 percent retreat in value since the news became public. This transaction left 5.58 million shares in the 10% Owner account.

On 01/06/2016, 10% Owner Kirk Randal J performed a purchase transaction worth $4.47 million. This purchase at $1 each has added 4.47 million shares into the insider’s portfolio position. Meanwhile, shares have recorded -83 percent decrease since the transaction was reported. The insider now is left with 7.55 million shares remaining in the account. Kopp Leroy C, who performs the 10% Owner job, sold 413.05 thousand shares for $1.53 million. The disposal occurred on 05/22/2014 was priced at $3.7 per share. The share price plunged -95.41 percent since the reporting date. Kopp Leroy C now left with a stake of 8.33 thousand PRPO stock worth $1.42 thousand after the insider selling.