Polarityte Inc (NASDAQ: COOL) has been on a remarkable run, recently, and it’s continuing higher after a Director filed a Form 4, indicating an acquisition of shares. That in mind, this catalyst may be an indication that the director has confidence in the company’s future performance.
PolarityTE Director Buys Shares
Michael Martin Beeghley, the trustee of Applied Economics, filed a Form 4, indicating a purchase of 20K shares at $13.36 per share, which is worth over $250K. The Form 4 is filed with the Securities and Exchange Commission, by insiders in order to report transactions in the company’s shares. Now, the nature of the indirect beneficial ownership represents the Applied Economics LLC profit sharing plan.
PolarityTE Performance and Valuation Ratios
COOL traded in a range between $13.31 and $15.77 today. COOL has a 52-week range between $2.61 and $15.77 . Therefore, COOL is currently over 450% above its 52-week low and just over 7% below its 52-week high. COOL is over 200% above its 200 day simple moving average. Additionally, COOL is over 70% above its 50-day SMA.
Here’s a look at COOL’s recent performance on the daily chart:
Now, if you look at the chart above, COOL shares have been rising significantly, and has not tested its 20-, 50- or 200-day moving averages in about a month. Moreover, the stock was in the overbought, as shown in the RSI. However, its RSI is now below 70.
Moving on, let’s take a look at some of its valuation ratios.
COOL has a book value per share (BVPS) of -0.552, which is unfavorable. COOL has a price-to-revenue ratio of 43.08. Additionally, the stock has a price-to-sales ratio (P/S) of over 40, while the industry average is 4, indicating that it’s overvalued in relation to its peers. Take note, PolarityTE has 2.53M shares floating, 4.1 million shares outstanding, and a short ratio of 3.31%. That said, there’s high risk in the name due to its low float. Generally, low float stocks could experience extreme moves, as COOL has done recently, potentially due to supply and demand aspects.
Let’s move on to how the company has been performing, in relation to its income statement.
The company’s revenue fell by 70.97%, year over year. Additionally, COOL’s net income fell by 192.55% year over year. However, COOL’s EPS grew by 43.31% quarter over quarter (QoQ). According to PolarityTe, the process of developing and providing its SkinTE technology, which could help to generate skin for wound healing, to patients commercially could take around 1-1.5 years, which means the company could begin to generate profits in 2019, if it properly executes and SkinTE is approved.
PolarityTE shares have been up significantly, and it continued its run today and returned just over 10% after a director acquired 20K shares. That said, this stock has had a mysterious run recently, and it could be due to its low float, and this move could continue if there is higher demand for COOL’s shares.