BELLUS Health Inc. (BLU) Shares: Are They Risky Or Cheap?

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BEPC Stock
BEPC Stock

BELLUS Health Inc. (NASDAQ:BLU) traded with an addition of $0.02 to close at $8.37 on Thursday, an upside of 0.24 percent. An average of 513,500 shares of common stock have been traded in the last five days. There was a fall of -$0.35 in the past week, and it reached a new high 13 times over the past 12 months. The last 20 days have seen an average of 445,510 shares traded, while the 50-day average volume stands at 525,982.

BLU stock has decreased by -10.70% in the last month. The company shares reached their 1-month lowest point of $8.07 on 12/28/22. With the stock rallying to its 52-week high on 08/11/22, shares of the company touched a low of $4.98 and a high of $12.69 in 52 weeks. It has reached a new high 12 times so far this year and achieved 3.73% or $0.32 in price. In spite of this, the price is down -34.04% from the 52-week high.


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Valuation Metrics

BELLUS Health Inc. (BLU) stock’s beta is 0.13. Other valuation ratios to consider include the trailing price-to-sales (P/S) ratio at 65933.69, the price-to-book (PB) ratio at 2.50.

Financial Health

The quick ratio of BELLUS Health Inc. for the three months ended September 29 was 17.00, and the current ratio was 17.00, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.00 and a total debt to equity ratio of 0.00 for the quarter ending September 29. Its gross profit as reported stood at $73.3 million compared to revenue of $16000.0.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, BELLUS Health Inc.’s return on assets was -22.00%.

Earnings Surprise

The analyst consensus anticipated BELLUS Health Inc.’s latest quarter earnings to come in at -$0.17 per share, but it turned out to be -$0.2, a -17.60% surprise. For the quarter, EBITDA amounted to -$23.0 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at BELLUS Health Inc. (BLU) price momentum. RSI 9-day as of the close on 28 December was 26.83%, suggesting the stock is oversold, with historical volatility in this time frame at 32.88%.

As of today, BLU’s price is $8.62 -4.01% or -$0.35 from its 5-day moving average. BLU is currently trading -15.20% lower than its 20-day SMA and -30.25% lower than its 100-day SMA. However, the stock’s current price level is -13.53% below the SMA50 and +45.82% above the SMA200.

The stochastic %K and %D were 10.34% and 11.31%, respectively, and the average true range (ATR) was 0.39. With the 14-day stochastic at 13.45% and the average true range at 0.40, the RSI (14) stands at 33.56%. The stock has reached -0.31 on the 9-day MACD Oscillator while the 14-day reading was at -0.69.

Analyst Ratings

BTIG Research launched coverage on BELLUS Health Inc. (NASDAQ: BLU) in its analyst report released on July 29, 2021. The firm assigned the stock a Buy rating. The consensus rating for BELLUS Health Inc. (BLU) among analysts is Buy. According to current brokerage recommendations, 0 brokerage firms advise that investors sell BLU, while 1 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 0 analysts, while 7 others rate it as a “buy”.

What is BLU’s price target for the next 12 months?

Analysts predict a range of price targets between $12.05 and $24.00, with a median target of $20.00. Taking a look at these predictions, the average price target given by analysts for BELLUS Health Inc. (BLU) stock is $18.92.

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