Is Frequency Therapeutics Inc. (FREQ) A Risky Investment?


Frequency Therapeutics Inc. (NASDAQ:FREQ) traded with an addition of $0.26 to close at $2.98 on Thursday, an upside of 9.74 percent. An average of 427,913 shares of common stock have been traded in the last five days. There was a gain of $1.11 in the past week, and it reached a new high 2 times over the past 12 months. The last 20 days have seen an average of 185,188 shares traded, while the 50-day average volume stands at 134,119.

FREQ stock has increased by 29.52% in the last month. The company shares reached their 1-month lowest point of $1.88 on 12/21/22. With the stock rallying to its 52-week high on 02/01/22, shares of the company touched a low of $1.00 and a high of $5.79 in 52 weeks. It has reached a new high 4 times so far this year and lost -46.98% or -$2.12 in price. In spite of this, the price is down -48.45% from the 52-week high.

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Insider Transactions

FREQ stock investors should be aware that Frequency Therapeutics Inc. (FREQ) stock had its last reported insider trading activity 176 days ago on Jul 06. In this transaction, the insider spent $3,363. Chief Scientific Officer, Loose Christopher R., disposed of 4,415 shares at a price of $1.53 on Jul 06. The insider now owns more than $6,755 worth of shares. Prior to that, Chief Manufacturing Officer McCubbin Quentin went on to Sale 6,569 shares at $1.52 each on Jul 06. An amount of $9,985 was transacted.

Financial Health

The quick ratio of Frequency Therapeutics Inc. for the three months ended September 29 was 5.00, and the current ratio was 5.00, indicating that the company is able to meet its debt obligations. Further, the company has a long term debt to equity ratio of 0.08 and a total debt to equity ratio of 0.18 for the quarter ending September 29. Its gross profit as reported stood at $98.1 million compared to revenue of $14.07 million.

For investors, determining the potential profitability of the investment also depends on the performance of the company’s management. In the past 12 months, Frequency Therapeutics Inc.’s return on assets was -53.90%.

Earnings Surprise

For the three-month period that ended September 29, Frequency Therapeutics Inc. had $55.5 million in cash and short-term investments compared to $6.67 million in total debt. In the quarter under review, the net income was down than the previous quarter. The company posted a net income of -$19.55 million in the quarter, while revenues of -$21.29 million were shrunk -28.7%. The analyst consensus anticipated Frequency Therapeutics Inc.’s latest quarter earnings to come in at -$0.57 per share, but it turned out to be -$0.55, a 3.50% surprise. For the quarter, EBITDA amounted to -$19.6 million. Shareholders own equity worth $35.26 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at Frequency Therapeutics Inc. (FREQ) price momentum. RSI 9-day as of the close on 28 December was 82.49%, suggesting the stock is Overbought, with historical volatility in this time frame at 115.96%.

As of today, FREQ’s price is $2.61 +58.42% or $1.11 from its 5-day moving average. FREQ is currently trading +35.59% higher than its 20-day SMA and +33.78% higher than its 100-day SMA. However, the stock’s current price level is +67.22% above the SMA50 and +53.57% above the SMA200.

The stochastic %K and %D were 79.21% and 77.52%, respectively, and the average true range (ATR) was 0.25. With the 14-day stochastic at 100.00% and the average true range at 0.22, the RSI (14) stands at 76.07%. The stock has reached 0.44 on the 9-day MACD Oscillator while the 14-day reading was at 0.52.

Analyst Ratings

Goldman downgraded Frequency Therapeutics Inc. (NASDAQ: FREQ) to a a Neutral rating in its most recent analyst report. Previously, the stock was rated as a Buy.


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