ATHIRA PHARMA, INC. (NASDAQ:ATHHA) is a biopharmaceutical company with a focus on late-stage clinical trials. In this article, we will look at ATHA’s PRICE-TO-BOOK RATIO and its PRIMARY PRODUCT. It’s easy to see why some investors might be interested in ATHRA. After reading this article, you’ll be well-equipped to make your own ATHA stock investment decision.
Athira Pharma Inc. announced today the terms of its initial public offering. The biotech company is focusing on neurological diseases, including Alzheimer’s disease. It has recently completed a reverse circulation drilling program and has signed an agreement with a drill contractor for a 5,000 foot drill. It also received final approval to drill at the proposed drill site. After the initial public offering, ATHA Stock shares have fallen by nearly 40%. Is it on the verge of another big wave?
The company’s lead drug candidate, ATH-1017, is a small molecule inhibitor of the HGF/MET pathway. Athira is advancing it through several clinical trials, including a phase 2/3 trial in mild-to-moderate Alzheimer’s disease. Topline data for the phase 2/3 trial are expected next year, and further trials are planned. ATH-1017 is expected to reach human trials by 2022. The company is also advancing additional therapies for the Alzheimer’s disease indication.
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Athira Pharma is currently undervalued compared to the market and fair value. Its Price-To-Book Ratio, or P/B Ratio, is a fraction of what it would be if it actually produced a profit. The company’s financial position is also undervalued, and it is important to keep in mind that loss-making companies should have at least one year’s cash runway.
ATHIRA PHARMA’S PRICE-TO-BOOK RATIO
If you are looking for an investment opportunity, one of the best ways to do so is to look at Athira Pharma’s Price-to-Book ratio. This ratio measures the stock’s price in relation to its book value, which is the total accounting value of the company’s assets minus its liabilities. A high Price-to-Book ratio is an indication that investors are expecting a higher return than what the company currently pays for its stock.
If Athira Pharma can expand its product line and grow its industry, it will likely enjoy a higher valuation. However, the financial industry is built on defining a company’s future valuation, and there are many factors that must be considered. Despite its high P/B ratio, Athira Pharma’s P/E ratio is lower than its peers. As long as the company has at least one year of cash runway, it’s worth considering.
ATHIRA PHARMA’S PRIMARY PRODUCT
Athira Pharmaceuticals is developing a drug that can reverse the nerve damage in patients with Alzheimer’s disease. Although there are a number of treatments for this condition, the current ones have limited effect. Athira’s drug candidates act by activating a different mechanism, targeting key brain neurotrophic receptors. The company is now pursuing clinical trials for Athira’s drug candidates.
As a result of the STAT inquiry, Athira executives have shuffled their leadership. Leen Kawas has stepped down from his role as Athira’s chief executive. Former CEO Leen Kawas oversaw the development of ATH-1017 and the public listing of the company. In June, the company announced Kawas’ resignation as CEO. Mark Litton has taken over the CEO role.
Richard A. (Ric) Kayne
In March, billionaire investor Richard A. (Ric) Kayne put himself and a former associate up for two board seats at Athira Pharma. He also proposed the company hire a new CEO, Ronald Krall, to replace Kawas. Kayne pulled back from the campaign days before the company’s annual shareholder meeting, but shareholders are still free to vote for his nominees. It is unclear if shareholders will still vote for Kayne or his nominees.
Kayne’s beneficial ownership in the Company is a conflict of interest that could prevent him from receiving a dividend on his shares. The company’s Board of Directors should change immediately. Changing the composition of the Board is essential to ensuring the integrity of the company’s clinical trials of ATH-1017. He has a 4.8% ownership stake in the company. By voting against him, Athira can ensure that he receives compensation derived from his shareholding.
ATHA Stock Technical Indicators
ATHA stock is a biotech company focused on developing medicines for Alzheimer’s disease. Their main product is promising to have a high demand. After they issued more shares, ATHA stocks plunged. However, this might only be the beginning. I believe ATHA stock is working on the 2nd wave and could go to $10.00 in three waves. This article will discuss the technical indicators that affect ATHA stock and how you can use them to your advantage.
While there has been some movement in the options market for Athira Pharma recently, the company’s stock has been showing signs of weakness. It is currently trading below a key moving average line. If it continues to trade below that line, it could make a significant move either up or down. However, it could also turn around and show signs of weakness. Bullish sentiment for Athira Pharma stock has been decreasing for quite some time, but it may turn positive again at some point.
InvestorsObserver’s Stock Sentiment Indicator has given Athira Pharma Inc (ATHA) a Bullish rating. However, this indicator is purely technical and does not indicate a company’s profitability or health. Investors can react to news about a company by taking short positions. However, the opposite is also true. If the number of short positions increases and the open interest decreases, the bullish sentiment for ATHA stock is rapidly fading.
Resistance from long-term moving average
A popular strategy to trade stocks is to follow the stock’s long-term moving average. This will highlight possible support and resistance areas. Moving averages are calculated using historical data and indicate the average price over a given period of time. To begin trading with a moving average, you will need to open a stockbroker account. If you do not have an account yet, we recommend checking out Investopedia’s list of the best online brokers.
Support from short-term average
ATHA’s recent chart shows support from the short-term moving average of 9.21. In addition, ATHA’s price is within a 20-day range of volatility, indicating that it is currently consolidating. A break-up through the long-term average would result in a buy signal, while a break-down below the short-term average would create a sell signal. Volume rose on falling prices yesterday, which may be an early warning.
The Price-to-Book ratio of Atha stock is the ratio of the company’s book value to its current market price. A high Price-to-Book ratio indicates investors are expecting greater returns in the future. Book value is the accounting value of all assets minus liabilities. For example, if a company has a price-to-book ratio of 12.5 then that means investors are expecting the company to increase its profits in the near future.
Athira Pharma’s Price-to-Book ratio (P/B) is 5.70807, which means that the stock is undervalued compared to its fair market value and other comparables. Moreover, ATHA Stock Price-to-Book ratio is relatively low compared to the US Pharmaceuticals industry average of 1.8x. While the low price indicates the company’s undervalued financial position, it’s not worth buying if it is currently generating losses.
If you’ve been following biotech stocks, you’ve probably noticed the company ATHA is a part of has been struggling. This biotech company focuses on developing drugs for Alzheimer’s disease. The drug is expected to be in high demand, and the company recently issued additional shares. ATHA stocks dropped after the company issued the new shares. However, the stock could be in the process of a 2nd wave. If this is the case, the stock could hit $10.00 in three waves.