As we dive into July's investment landscape, Atara Biotherapeutics (ATRA) presents itself as a compelling subject for consideration. This healthcare company, listed on NASDAQ, has been navigating the challenging waters of the biotech sector with a net income from continuing operations showing a loss of $85.4 million. Despite this, the stock's 52-week low of $5.01 suggests potential room for growth. Investors are keenly watching to see if Atara can leverage its innovative therapies to turn the tide, making it a stock worth examining for those with a taste for high-risk, high-reward opportunities. Why have analysts shifted their consensus on Atara Biotherapeutics to a Strong Buy? With the company set to release its earnings today, it's a good time to consider its potential as an investment. Despite some skepticism, particularly among older investors who may be wary of biotech, there's reason to remain hopeful about Atara's prospects. Although analysts' confidence has waned slightly compared to last month, the current recommendation from five analysts is still a Strong Buy. This suggests that, despite recent uncertainties, there is optimism about Atara's ability to recover and perform well in the future.
What is the right price you would pay to acquire a share of Atara Biotherapeutics? For most investors, it would be the price that gives them a wide margin of safety to have minimal downside risk. In other words, most investors are always looking for undervalued stocks. Even if the
future performance is not entirely as expected, the loss of holding it is minimized, and the downside risk is negated. Please read more on our
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What is happening with Atara Biotherapeutics this year
Annual and quarterly reports issued by Atara Biotherapeutics are formal
financial statements that are published yearly and quarterly and sent to Atara stockholders. The reports show and break down the current year's ongoing operations and discuss plans for the upcoming year. Annual reports have been a requirement from the
Securities and Exchange Commission (SEC) for businesses owned by the public since 1934.
Companies such as Atara Biotherapeutics often view their annual report as an effective marketing tool to disseminate their perspective on company future earnings or innovations. With this in mind, many companies devote large sums of money to making their reports attractive and informative. In such instances, the annual report becomes a forum through which a company can communicate to the general public any number of topics that may or may not be directly related to the actual data published in the reports.
A Deeper Perspective
Average experts consensus on Atara Biotherapeutics has changed. Currently, most analysts have less confidence in the entity as compared to a month ago. The current buy or sell recommendation of 5 analysts is Strong Buy.
Is Atara a risky opportunity?
Let's check the volatility. Atara is looking slightly risky at this time. Whether you invest your money or manage your clients' funds, remember that it is easy to forget that behind Atara (USA Stocks:ATRA) stock is an actual business venture. So, do not let stock picking become an abstract concept by ignoring the elementary risk calculations. taking in a share of an Atara Biotherapeutics stock makes you a part-owner of that company.
Atara Biotherapeutics Current Consensus
Here is the current trade recommendation based on an ongoing consensus estimate among financial analysis covering Atara Biotherapeutics. The Atara consensus assessment is calculated by taking the average estimates from all of the analysts covering Atara Biotherapeutics.
| Strong Buy | 4 | 80.0 |
| Buy | 0 | 0.0 |
| Hold | 1 | 20.0 |
| Sell | 0 | 0.0 |
| Strong Sell | 0 | 0.0 |
Fortune favors the bold, especially in the volatile world of biotechnology stocks like Atara Biotherapeutics. With a market capitalization of $62.72 million and a 52-week low of $5.01, Atara presents a high-risk, high-reward scenario for investors. The company's net income shows a significant loss of $85.4 million, reflecting the challenges it faces in achieving profitability. However, with a target price of $16, there is a potential upside that could appeal to risk-tolerant investors. As always, weighing the probability of bankruptcy at 95.82% against the potential gains is crucial before making any investment decision.
Is Atara showing appearance of lower volatility?
Atara Biotherapeutics' stock is currently experiencing a potential decrease in volatility, as evidenced by its information ratio dropping to 0.11. This figure, which evaluates risk-adjusted returns, indicates that the stock's performance might be stabilizing relative to its volatility. While a lower information ratio can imply less efficient returns, it may also suggest steadier price movements. Investors might see this as an opportunity to reassess their strategies, particularly if they prefer more predictable performance. However, Atara Biotherapeutics still shows above-average semi-deviation, which is crucial for understanding market trends.
By effectively using volatility indicators, traders can gauge the stock's risk against market fluctuations, especially during bear markets, which can significantly affect the stock price and prompt portfolio adjustments.While Atara Biotherapeutics has recently seen a surge in its stock price, it's crucial to approach this rise with a degree of caution. The current valuation, with a real value of 11.47, suggests that the market might be overestimating its worth, especially when compared to the hype value of 9.22. Analysts have set a target price of 16, indicating potential growth, but it's important to note that the stock also has a possible downside price of 5.67. With a strong buy consensus from analysts, including
4 strong buy recommendations, there is optimism about Atara's future. However, investors should weigh these factors carefully, considering both the potential rewards and risks before making any investment decisions..
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Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Atara Biotherapeutics. Please refer to our
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