Proteostasis Therapeutics, Inc. (PTI) Attacked By Short Sellers?

In the latest fortnight, short interest in Proteostasis Therapeutics, Inc. (NASDAQ:PTI) stock jumped by 15.44%, indicating a significant rise in bearish sentiment. When it comes to determining how a name is viewed by investors, short interest is often a useful tool. The average analyst recommendations at 1.8 suggests selling these shares. Between January 31 and February 15, the total number of shorted shares amounted to 3.98 million shares. That was 532,652 more shares than the total of 3.45 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 PTI at the February 15th settlement jumped to 2,055,243, as compared to 492,389 at the January 31st report. That brought days to cover to 1.937322, a 72.34% decrease from the 7.004657 days to cover recorded at the prior short interest data release.

Proteostasis Therapeutics, Inc. (PTI) will probably climb 220.93 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $21-month high price target. This represents a whopping 388.37 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 225.58 percent when compared to the closing price of the stock of $4.3 on Friday, March 01. The lowest price target for the stock is $9 — slightly more than 109.3 percent from PTI’s current share price.

The stock is currently hovering around the first support level of $4.04. Below this, the next support is placed in the zone of $3.79. Till the time, the PTI stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 65.75 on daily chart, which may remain a cause for concern. If the price breaks below $3.79 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $4.44 mark may result into a pull-back move towards $4.59 level.

On 1st of March, Proteostasis Therapeutics, Inc. (NASDAQ:PTI) shares ended higher after a volatile session. The shares accumulated 0.18 points or 4.37 percent at $4.3 with a heavy trade volume of 1.125 million shares. After opening the session at $4.15, the shares went as high as $4.33 and as low as $3.93, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $211 million and now has 49.15 million shares outstanding. Proteostasis Therapeutics, Inc. (PTI) stock has gained 41.91 percent of market value in 21 trading days.

PTI stock has a trailing 3-year beta of 0, offering the possibility of a lower rate of return, but also posing less risk. The portion of a company’s profit allocated to each outstanding share of common stock was -$1.76 a share in the trailing twelve months. The stock’s value has surged 32.72 percent year to date (YTD) against a rise of 43.81 percent in 12 month’s time. The company’s shares still trade -58.57 percent away from its 1-year high of $10.38 and 151.46 percent up from 52-week low of $1.71. 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 Proteostasis Therapeutics, Inc. (PTI) are trading at a P/E ratio of 0 times earnings reported for the past 12 months. The industry PTI operates in has an average P/E of 86.11. Its P/E ratio went as low as 0X and as high as 0 over the 5-year span. Further, it is sporting a 46.97 on the Price-to-Sales ratio. Compare this with the industry average P/S of 47.6. 0 percent is the gross profit margin for Proteostasis 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 Proteostasis Therapeutics, Inc. (NASDAQ:PTI) and see the pattern. The earliest insider trade took place on 02/04/2019. Munoz Benito parted with a total of 9.51 thousand shares of company at average share price of $2.99. The total for the sales was set at $28.45 thousand. After this transaction, the Chief Scientific Officer account balance stood at 15.44 thousand shares. The stock grew 43.81 percent since that insider sale. On 02/04/2019, Chhabra Meenu, President and CEO, sold 16.48 thousand shares at a price per share of $2.99. This removed 49.27 thousand shares from the insider’s fortune and the stock saw a 43.81 percent rally in value since the news became public. This transaction left 80.62 thousand shares in the President and CEO account.

On 02/04/2019, Chief Development Officer Gilmartin Geoffrey S. performed a sale transaction worth $27.48 thousand. This sale at $2.99 each has eliminated 9.19 thousand shares from the insider’s portfolio position. Meanwhile, shares have recorded 43.81 percent increase since the transaction was reported. The insider now is left with 14.91 thousand shares remaining in the account. Lee Po Shun, who performs the job, sold 9.93 thousand shares for $29.69 thousand. The disposal occurred on 02/04/2019 was priced at $2.99 per share. The share price soared 43.81 percent since the reporting date. Lee Po Shun now left with a stake of 18.43 thousand PTI stock worth $79.24 thousand after the insider selling.