The Reason To Stay Long On DURECT Corporation (DRRX)

The median price target for DURECT Corporation, (DRRX) over the next 12 months is $3.25, which means that it could rise by 112.42% from its current position. Despite that, some analysts believe that it won’t perform excellent, setting a lower price target of $1.5 for the stock which means it could rise by -1.96%. Most analysts believe that the company’s stock has the potential to rise by 259.48% or more. For DURECT Corporation to record further gainanalysts believe that the company has to hit $5.5 price target. The high price target for DRRX for next 12 months currently stands at $5.5. This means that the highest 12 months price target is 259.48% above its last closing price. For most investors, the 10.07% change in the share price could have prompted them to buythe stock, but doing that would be a mistake as it would be taking into consideration only the short-term performance of the stock. The stock closed August 22, 2019 trading at $1.53 which saw downtrend of 216.7% since the beginning of 2019. The price of the stock has risen by 120.92% from average 12-month price target of $3.38 expected by the analysts.

A look at the DRRX stock today shows that it has gained 20.47% of its value over the past one year, which has led to some investors becoming excited about the short-term performance of DURECT Corporation (NASDAQ:DRRX). If we turn to the stock analysts in general, they revealed that most of them are still bullish about the chances of the shares. The consensus rating from analysts for DURECT Corporation (DRRX) is 0 which is a buy rating. Over the past week, the stock has been rated as a Buy 1 times while it has been rated as a Hold 1 times. The 52-week high price for DRRX is $1.49 which is attained on August 22 while its 52-week low currently stands at $0.46 and was reached on December 28. At the moment, the stock is trading $0.79 above its YTD moving average set at $0.74.

Moving on, DURECT Corporation (DRRX) last released its earnings for the June 2019 quarter of the fiscal year. The company performed lower over the past three months, with its earnings down 0% year-over-year at $-0.04. The company brought a surprise of -20 as analysts were predicting $-0.05 per share. The revenue generated by DURECT Corporation in the June 2019 quarter surged by 17% to reach $3.98 million. This is highcompared to the $3.41 million it recorded in the same quarter last year. To see what traders should watch in its September 2019 financial results, analysts have consensus earnings per share of $-0.02 which is lowerthan the $-0.02 recorded in the same quarter a year ago. Over the next 12 months, the earnings per share are expected to move by 20%. If it achieves that, then the company firmly believes that its long-term annual earnings growth rate target set at 20 % could be achieved. The company has also recorded a revenue of $19.8 million over the past 12 months.

In order to determine if the stock is worthy of your patience, you should know that DURECT Corporation (NASDAQ:DRRX) is now trading at 0X the earnings per share recorded over the past 12 months. This is a downtrend compared to the readings of the sector which is 32.67X while the industry average stands at 69.38X. The most popular way to value a stock is to look at its historic Price-to-Earnings (P/E) ratio with the help of its earnings report over the past 12 months. DURECT Corporation was able to achieve an EPS of $-0.15 during the last four quarters. The P/E ratio is widely known due to the fact that it is widely used, simple, effective, and, tautologically.

On Thursday, August 22 of 2019, the 14-day Absolute ATR (Average True Range) for DRRX moved by $0.11. Over the past seven days, the stock’s average daily volatility stood at 7.89%. A stock with a low volatility is usually a good one as it means that investors are very confident in the stock. DURECT Corporation’s trading volume has recently moved to 1.88 million, which is compared with the average daily volume of 1.26 million shares.

The daily chart for DRRX, points out that the company has recorded 94.83% gains over the past six months. However, it is still 232.61% higher than its most recent low trading price. The performance of the stock over the past five days shows that it is up 17.69% though it is 21.72% above its three-week moving average. It is worthy to know that price action is not always clear. There are times when a stock will undergo some negatives, trade erratically within some range or even act very unpredictable. When that happens, then making use of moving averages makes the pattern clearer for traders. Comparing to 50-day SMA, the price of the stock has surged by 69.22% while it is up 106.02% against the 200-day SMA. This is usually seen as the last support line for a stock, as a move downward could signal a bearish trend or market. The daily chart of DRRX reveals that it has gained some grounds as it ended Thursday with a 53% rise over the past 30 days.