Karyopharm Therapeutics Inc. (KPTI) Stock Might Be Overheated

In the period that ended January 31, 2019, short interest in Karyopharm Therapeutics Inc. (NASDAQ:KPTI) stock is on the decline. The 1.31% drop could be an indication that investors and traders expect a strength in the stock price, often as a result of a strength in the business’ fundamentals. The average analyst recommendations at 1.6 suggests selling these shares. Between January 15 and January 31, the total number of shorted shares amounted to 5.97 million shares. That was 79,341 less shares than the total of 6.05 million shares in the space of prior two weeks, which means more traders or funds betting that the stock will go up. Average daily volume for KPTI at the January 31st settlement jumped to 628,393, as compared to 492,598 at the January 15th report. That brought days to cover to 9.494143, a 22.64% decrease from the 12.27247 days to cover recorded at the prior short interest data release.

Investors will get their next glimpse of KPTI’s Q4 earnings on March 14. Analysts are forecasting revenue to suffer decline of -70.7 percent to $450M in the next fiscal quarter, while earnings are seen soaring by nearly 6.25 percent to -$0.85 per share. History has shown that shares in Karyopharm Therapeutics Inc. have gone up on 11 different earnings reaction days and are predicted to add 0.06 percent when the company reports upcoming earnings. In last reported earnings results, it earned -$0.79 per share, better than the -$0.89, adjusted, expected by Thomson Reuters consensus estimate. Revenue was $240000, worse than the $460000 analysts expected. Earnings are estimated to increase by 3.8 percent this year, -7.2 percent next year and continue to increase by 0 percent annually for the next 5 years.

Karyopharm Therapeutics Inc. (KPTI) will probably climb 160.92 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 227.51 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $25, which represents a return potential of 172.93 percent when compared to the closing price of the stock of $9.16 on Wednesday, February 13. The lowest price target for the stock is $15 — slightly more than 63.76 percent from KPTI’s current share price.

The stock is currently hovering around the first support level of $8.81. Below this, the next support is placed in the zone of $8.47. Till the time, the KPTI stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 50.74 on daily chart, which may remain a cause for concern. If the price breaks below $8.47 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $9.36 mark may result into a pull-back move towards $9.56 level.

On 13th of February, Karyopharm Therapeutics Inc. (NASDAQ:KPTI) shares ended higher after a volatile session. The shares accumulated 0.4 points or 4.57 percent at $9.16 with a light trade volume of 1.629 million shares. After opening the session at $8.84, the shares went as high as $9.215 and as low as $8.67, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $564 million and now has 61.6 million shares outstanding. Karyopharm Therapeutics Inc. (KPTI) stock has lost -5.47 percent of market value in 21 trading days.

KPTI stock has a trailing 3-year beta of 3.37, 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 -$2.97 a share in the trailing twelve months. The stock’s value has fallen -2.24 percent year to date (YTD) against a decline of -30.61 percent in 12 month’s time. The company’s shares still trade -57.81 percent away from its 1-year high of $21.71 and 14.36 percent up from 52-week low of $8.01. The average consensus rating on the company is 1.6, 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 Karyopharm Therapeutics Inc. (KPTI) are trading at a P/E ratio of 0 times earnings reported for the past 12 months. The industry KPTI 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 17.8 on the Price-to-Sales ratio. Compare this with the industry average P/S of 49.51. 0 percent is the gross profit margin for Karyopharm Therapeutics 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 Karyopharm Therapeutics Inc. (NASDAQ:KPTI) and see the pattern. The earliest insider trade took place on 01/07/2019. Shacham Sharon parted with a total of 12.5 thousand shares of company at average share price of $10.23. The total for the sales was set at $127.88 thousand. After this transaction, the President & CSO account balance stood at 1.32 million shares. The stock lost -10.46 percent since that insider sale. On 01/07/2019, Kauffman Michael, CEO, sold 12.5 thousand shares at a price per share of $10.23. This removed 127.88 thousand shares from the insider’s fortune and the stock saw a -10.46 percent retreat in value since the news became public. This transaction left 1.32 million shares in the CEO account.

On 12/07/2018, President & CSO Shacham Sharon performed a sale transaction worth $126.38 thousand. This sale at $10.11 each has eliminated 12.5 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded -9.4 percent decrease since the transaction was reported. The insider now is left with 1.32 million shares remaining in the account. Kauffman Michael, who performs the CEO job, sold 12.5 thousand shares for $126.38 thousand. The disposal occurred on 12/07/2018 was priced at $10.11 per share. The share price plunged -9.4 percent since the reporting date. Kauffman Michael now left with a stake of 1.32 million KPTI stock worth $12.09 million after the insider selling.