The Case for and Against Omeros Corporation (OMER)

Omeros Corporation (OMER) is an interesting player in the Healthcare space, with a focus on Biotechnology. The stock has been active on the tape, currently trading at $24.44, up from yesterday’s close by 7.81%. Given the stock’s recent action, it seemed like a good time to take a closer look at the company’s recent data.

Fundamental Analysis

Omeros Corporation (OMER) currently trades with a market capitalization of $1.18 Billion. That value represents a market adjusting for revenues that have been falling by -87.04 % on a quarterly year/year basis as of the company’s last quarterly report.

You can get a sense of how sustainable that is by a levered free cash flow of -$35.28 Million over the past twelve months. Generally speaking, earnings are expected to hold steady in coming quarters. Analysts are forecasting earnings of -$0.43 on a per share basis this quarter. Perhaps, that suggests something about why 5.27% of the outstanding share supply is held by institutional investors.

Technical Analysis

As most professionals know, technical analysis can offer critical insights into what smart money and insiders think about a stock’s prospects going forward. Looking at the stock’s movement on the chart, Omeros Corporation recorded a 52-week high of $27.09. It is now trading 2.65% off that level. The stock is trading $13.92 its 50-day moving average by -10.52%. The stock carved out a 52-week low down at $8.36.

In recent action, Omeros Corporation (OMER) has made a move of +62.93% over the past month, which has come on Strong relative transaction volume. Over the trailing year, the stock is underperforming the S&P 500 by 15.83, and it’s gotten there by action that has been more volatile on a day-to-day basis than most other stocks on the exchange. In terms of the mechanics underlying that movement, traders will want to note that the stock is trading on a float of 23.27% with $45.36 Million sitting short, betting on future declines. That suggests something of the likelihood of a short squeeze in shares of OMER.

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