(VIANEWS) – Viking Therapeutics (NASDAQ: VKTX) shares experienced an unexpectedly sharp surge on Thursday, increasing 17.73% to close at EUR28.82 after two sessions of losses. Meanwhile, the NASDAQ posted gains as well, rising 0.95% and closing at EUR15,756.64. Despite these significant gains, Viking Therapeutics still closed 4.82% below its 52-week high of EUR25.72.
About Viking Therapeutics
Viking Therapeutics is a clinical-stage biopharmaceutical company focused on developing innovative therapies for metabolic and endocrine conditions. Their lead drug candidate, VK2809, is an orally administered tissue and receptor subtype selective thyroid hormone receptor agonist currently being evaluated in Phase IIb trials for nonalcoholic steatohepatitis and nonalcoholic fatty liver disease (NASH/NAFLD). VK5211, a non-steroidal selective androgen receptor modulator designed for treating non-elective hip fracture surgery patients in recovery mode; and VK0612, an early Phase IIb candidate drug candidate for type 2 diabetes are currently under development by this team. Viking Therapeutics currently has in their pipeline two medications for treating glucagon-like peptide deficiency: VK2735 is a dual agonist and VK0214 serves as tissue and receptor subtype selectivity TR agonist to target X-linked Adrenoleukodystrophy. Established in 2012 and located in San Diego California.
Yearly Analysis
As an experienced investor, I can offer you a detailed analysis of Viking Therapeutics stock based on the information available.
Viking Therapeutics stock has seen significant gains this year and currently trades at EUR28.82 – over 30% higher than its 52-week high of EUR25.72. This indicates a positive trend and investors should proceed cautiously at current price points as there may be overvaluation at play here.
Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA):
Viking Therapeutics’ current EBITDA figure stands at -26.32, signalling it is currently operating at a loss and therefore not an ideal investment opportunity. A company operating at a loss may not generate sufficient revenues to cover its operating expenses and may become insurable over time – not making them sustainable investments over the long haul or being reliable sources for returns in their investment strategy.
Viking Therapeutics stock has performed well over the last year and currently trades higher than its 52-week high; however, its negative EBITDA may cause concern to investors as this indicates they may be operating at a loss. As such, this information must be carefully taken into consideration before making any investment decisions.
Technical Analysis
Viking Therapeutics stock has been performing strongly, with its current value significantly outperforming both its 50-day and 200-day moving averages of EUR18.76 and EUR16.60, respectively. Despite this upbeat performance, its last reported volume (2477796) indicates a decrease in trading activity of 9.23% compared to its usual volume (2729840).
Viking Therapeutics saw intraday volatility averages of 2.00% for the past week, month, and quarter; its highest average weekly volatility amplitudes were 3.16% in week 1, 2.911% in month 1 and 3.844% in quarter 1.
Based on the stochastic oscillator, which measures overbought and oversold conditions, Viking Therapeutics stock appears to be oversold (=20), representing an opportunity for investors to purchase it at lower prices.
Equity Analysis
According to its financial data, Viking Therapeutics currently has an EPS for the trailing twelve month period of EUR-0.92, which indicates negative earnings during that time frame and indicates it is currently not producing profits for shareholders.
Additionally, the company has posted a negative return on equity (ROE) of -31.12% over its trailing twelve month period. ROE measures the profitability of a business relative to shareholder’s equity invested, so a negative ROE indicates that profits generated do not justify investing enough shareholder equity into it.
Before making any investment decisions regarding Viking Therapeutics, investors should carefully assess its financial health. In particular, they may wish to review indicators like revenue growth and profit margins to form a complete picture of its financial wellbeing.
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