What Can We Learn From First Wave BioPharma Inc. (FWBI)’s Valuation Ratios?


First Wave BioPharma Inc. (NASDAQ:FWBI) finished Thursday with an addition of $0.3 to close at $0.79, an upside of 61.22 percent. An average of 1,014,440 shares of common stock have been traded in the last five days. There was a gain of $0.2839 in the past week, and it reached a new high 3 times over the past 12 months. The last 20 days have seen an average of 410,995 shares traded, while the 50-day average volume stands at 839,584.

FWBI stock has increased by 0.51% in the last month. The company shares reached their 1-month lowest point of $0.4303 on 12/23/22. With the stock rallying to its 52-week high on 01/03/22, shares of the company touched a low of $0.43 and a high of $50.24 in 52 weeks. It has reached a new high 1 time so far this year and lost -98.18% or -$42.5600 in price. In spite of this, the price is down -98.43% from the 52-week high.

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Financial Health

The quick ratio of First Wave BioPharma Inc. for the three months ended September 29 was 0.40, and the current ratio was 0.40, indicating that the company is not able to meet its debt obligations. Its gross profit as reported stood at $11000.0 compared to revenue of $59.06 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, First Wave BioPharma Inc.’s return on assets was -283.80%.

Earnings Surprise

In the quarter under review, the net income was down than the previous quarter. The company posted a net income of $4.23 million in the quarter, while revenues were grew 400.95%. The analyst consensus anticipated First Wave BioPharma Inc.’s latest quarter earnings to come in at -$3.01 per share, but it turned out to be $2.6, a 186.40% surprise. For the quarter, EBITDA amounted to $4.4 million. Shareholders own equity worth $5.79 million.

Technical Picture

From a technical analysis perspective, let’s take a brief look at First Wave BioPharma Inc. (FWBI) price momentum. RSI 9-day as of the close on 29 December was 67.58%, suggesting the stock is Neutral, with historical volatility in this time frame at 265.13%.

As of today, FWBI’s price is $0.5428 +56.10% or $0.2839 from its 5-day moving average. FWBI is currently trading -4.82% lower than its 20-day SMA and -83.32% lower than its 100-day SMA. However, the stock’s current price level is -42.75% below the SMA50 and -97.52% below the SMA200.

The stochastic %K and %D were 39.41% and 22.01%, respectively, and the average true range (ATR) was 0.1278. With the 14-day stochastic at 81.07% and the average true range at 0.1215, the RSI (14) stands at 57.04%. The stock has reached 0.0520 on the 9-day MACD Oscillator while the 14-day reading was at 0.0116.

Analyst Ratings

The consensus rating for First Wave BioPharma Inc. (FWBI) among analysts is Buy. According to current brokerage recommendations, 0 brokerage firms advise that investors sell FWBI, while 0 suggest investors hold. There are 0 analysts who rate the stock as underweight. The stock is rated overweight by 0 analysts, while 2 others rate it as a “buy”.

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

Analysts predict a range of price targets between $4.00 and $18.00, with a median target of $11.00. Taking a look at these predictions, the average price target given by analysts for First Wave BioPharma Inc. (FWBI) stock is $11.00.


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