Ocular Therapeutix (NASDAQ:OCUL) Shares Gap Down Following Weak Earnings

Ocular Therapeutix, Inc. (NASDAQ:OCUL) shares gapped down prior to trading on Monday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $6.59, but opened at $6.25. Ocular Therapeutix shares last traded at $6.44, with a volume of 546,117 shares trading hands.

The biopharmaceutical company reported ($0.42) earnings per share for the quarter, missing the consensus estimate of ($0.36) by ($0.06). The firm had revenue of $12.87 million during the quarter, compared to analysts’ expectations of $14.27 million. Ocular Therapeutix had a negative return on equity of 59.89% and a negative net margin of 579.10%. Ocular Therapeutix’s quarterly revenue was down 11.5% compared to the same quarter last year. During the same quarter in the prior year, the company posted ($0.38) earnings per share.

Analysts Set New Price Targets

Several brokerages have weighed in on OCUL. Wall Street Zen raised Ocular Therapeutix from a “sell” rating to a “hold” rating in a report on Saturday, August 8th. UBS Group started coverage on shares of Ocular Therapeutix in a report on Sunday, October 11th. They set a “buy” rating and a $14.00 price objective on the stock. HC Wainwright reaffirmed a “buy” rating on shares of Ocular Therapeutix in a research report on Tuesday, October 20th. Needham & Company LLC reaffirmed a “buy” rating and issued a $18.00 price objective on shares of Ocular Therapeutix in a research report on Monday, October 19th. Finally, Weiss Ratings reiterated a “sell (d-)” rating on shares of Ocular Therapeutix in a research note on Thursday, October 15th. One equities research analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and a consensus target price of $23.33.

Insider Buying and Selling

In other news, insider Peter Kaiser sold 9,990 shares of the firm’s stock in a transaction that occurred on Friday, October 2nd. The shares were sold at an average price of $7.05, for a total transaction of $70,429.50. Following the sale, the insider owned 254,388 shares of the company’s stock, valued at $1,793,435.40. This trade represents a 3.78% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Pravin Dugel sold 21,649 shares of Ocular Therapeutix stock in a transaction that occurred on Monday, August 24th. The shares were sold at an average price of $10.77, for a total transaction of $233,159.73. Following the transaction, the insider directly owned 2,525,429 shares of the company’s stock, valued at approximately $27,198,870.33. This trade represents a 0.85% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last three months, insiders sold 62,720 shares of company stock valued at $556,247. Insiders own 3.10% of the company’s stock.

Institutional Trading of Ocular Therapeutix

A number of hedge funds have recently added to or reduced their stakes in the company. BlackRock Inc. purchased a new stake in shares of Ocular Therapeutix during the 2nd quarter worth about $190,278,000. Commodore Capital LP acquired a new stake in shares of Ocular Therapeutix during the 1st quarter valued at about $21,810,000. Readystate Asset Management LP acquired a new stake in shares of Ocular Therapeutix during the 1st quarter valued at about $7,484,000. Defilade Capital Management L.P. increased its stake in shares of Ocular Therapeutix by 118.2% in the 1st quarter. Defilade Capital Management L.P. now owns 1,487,645 shares of the biopharmaceutical company’s stock valued at $12,600,000 after purchasing an additional 805,982 shares in the last quarter. Finally, Dimensional Fund Advisors LP purchased a new position in shares of Ocular Therapeutix in the 1st quarter valued at about $5,491,000. 59.21% of the stock is owned by hedge funds and other institutional investors.

Ocular Therapeutix Trading Down 3.0%

The stock has a market cap of $1.40 billion, a PE ratio of -4.49 and a beta of 1.22. The company has a debt-to-equity ratio of 0.14, a quick ratio of 13.03 and a current ratio of 13.10. The company has a 50 day moving average of $8.40 and a two-hundred day moving average of $9.02.

Ocular Therapeutix Company Profile

Ocular Therapeutix, Inc is a biopharmaceutical company focused on developing and commercializing treatments for eye diseases and conditions. Based in Bedford, Massachusetts, the company uses its proprietary hydrogel-based technology to deliver medicines to the eye over time.

Its marketed product, DEXTENZA, is a corticosteroid insert placed in the tear duct by an eye-care professional to treat inflammation and pain following ophthalmic surgery. Ocular Therapeutix also develops investigational therapies for retinal diseases and other eye conditions, including treatments designed for sustained drug delivery.

The company was founded in 2006 and serves the U.S.