Is Travere Therapeutics (TVTX) Setting Up for a Big Move?

Travere Therapeutics Inc. (TVTX) is a biopharmaceutical company. The company is focused on the development and commercialization of therapies for people living with rare diseases. Its pipeline candidate, sparsentan, is an investigational product candidate for rare kidney disorders that often lead to end-stage kidney disease…

In its most recent earnings report, Travere Therapeutics Inc. (TVTX) disappointed with earnings coming in at -$0.96, which was well below the consensus estimate of -$0.56. While earnings improved sequentially from the previous quarter, they were down year-over-year. The company also received disappointing news in May as the FDA won’t grant accelerated approval to its pipeline drug sparsentan.

The company does look good from a short-term debt perspective as it had $521 million in cash as of March, compared with no short-term debt. Unfortunately, its net profit margin is -113.2%. In terms of sales growth, the company has grown revenue an average of 10.4% per year over the past five years.

From a valuation standpoint, the company has a price-to-sales ratio of 3.9 which is well below the industry average. Its price-to-book ratio of 2.6 is also well below the industry average. The stock is down almost 44% for the year, but as you can see in the chart below, it has shown mixed performance since Mid-July.

Take a look at the 6-month chart of TVTX below with added notations…

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