Short-Sellers Onto Something at Organovo Holdings, Inc. (ONVO)

In the period that ended January 31, 2019, short interest in Organovo Holdings, Inc. (NASDAQ:ONVO) stock is on the rise. The 1.11% advance could be an indication that investors and traders expect a deterioration in the stock price, often as a result of a deterioration in the business’ fundamentals. The average analyst recommendations at 1.8 suggests selling these shares. Between January 15 and January 31, the total number of shorted shares amounted to 12.43 million shares. That was 136,539 more shares than the total of 12.3 million shares in the space of prior two weeks, which means more traders or funds betting that the stock will go down. Average daily volume for ONVO at the January 31st settlement plunged to 530,537, as compared to 588,366 at the January 15th report. That brought days to cover to 23.43776, a 12.13% increase from the 20.90206 days to cover recorded at the prior short interest data release.

Organovo Holdings, Inc. (ONVO) will probably climb 131.48 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $3 price as 12-month high target. This represents a whopping 177.78 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $2.75, which represents a return potential of 154.63 percent when compared to the closing price of the stock of $1.08 on Wednesday, February 13. The lowest price target for the stock is $1.5 — slightly more than 38.89 percent from ONVO’s current share price.

The stock is currently hovering around the first support level of $1.02. Below this, the next support is placed in the zone of $0.97. Till the time, the ONVO stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 61.25 on daily chart, which may remain a cause for concern. If the price breaks below $0.97 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $1.12 mark may result into a pull-back move towards $1.17 level.

On 13th of February, Organovo Holdings, Inc. (NASDAQ:ONVO) shares ended higher after a volatile session. The shares accumulated 0.06 points or 5.88 percent at $1.08 with a light trade volume of 1.036 million shares. After opening the session at $1.01, the shares went as high as $1.11 and as low as $1.01, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $124 million and now has 114.8 million shares outstanding. Organovo Holdings, Inc. (ONVO) stock has gained 3.85 percent of market value in 21 trading days.

ONVO stock has a trailing 3-year beta of 1.8, 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 -$0.24 a share in the trailing twelve months. The stock’s value has surged 12.84 percent year to date (YTD) against a decline of -6.09 percent in 12 month’s time. The company’s shares still trade -48.33 percent away from its 1-year high of $2.09 and 20 percent up from 52-week low of $0.90. 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 Organovo Holdings, Inc. (ONVO) are trading at a P/E ratio of 0 times earnings reported for the past 12 months. The industry ONVO operates in has an average P/E of 88.07. Its P/E ratio went as low as 0X and as high as 0 over the 5-year span. Further, it is sporting a 35.42 on the Price-to-Sales ratio. Compare this with the industry average P/S of 51.29. 81.1 percent is the gross profit margin for Organovo Holdings, 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 Organovo Holdings, Inc. (NASDAQ:ONVO) and see the pattern. The earliest insider trade took place on 11/08/2018. Presnell Sharon Collins parted with a total of 40 thousand shares of company at average share price of $1.27. The total for the sales was set at $50.8 thousand. After this transaction, the Chief Scientific Officer account balance stood at 292.19 thousand shares. The stock lost -14.96 percent since that insider sale. On 11/24/2017, Murphy Keith, Former affiliate last filing, purchased 335.5 thousand shares at a price per share of $1.49. This added 499.9 thousand shares to the insider’s fortune and the stock saw a -27.52 percent retreat in value since the news became public. This transaction left 6.37 million shares in the Former affiliate last filing account.

On 02/09/2017, Chairman, CEO and President Murphy Keith performed a sale transaction worth $92 thousand. This sale at $3.68 each has eliminated 25 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded -70.65 percent decrease since the transaction was reported. The insider now is left with 12.11 million shares remaining in the account. Murphy Keith, who performs the Chairman, CEO and President job, sold 25 thousand shares for $87.75 thousand. The disposal occurred on 01/24/2017 was priced at $3.51 per share. The share price plunged -69.23 percent since the reporting date. Murphy Keith now left with a stake of 6.04 million ONVO stock worth $6.52 million after the insider selling.