Sorrento SRNE Stock Forecast 2023
Sorrento (SRNE) Stock Forecast 2023: Latest Price
A biopharmaceutical company developing new therapies to treat cancer, cancer pain, autoimmune diseases, and COVID-19, Sorrento is at the clinical and commercial stages of development.
Performance of Sorrento Stock
- Last 1 Month: -2.6%
- Last 6 Months: -76.5%
- Last 12 Months: -80.9%
Sorrento Stock Forecast 2023: Quarterly Result
| EPS | Revenue | |
|---|---|---|
| Q4 2022 (Dec 2022) | -0.49 | 15.59M |
| Q3 2022 (Sep 2022) | -0.20 | 17.40M |
| Earnings history by period FQ2 2022 (Jun 2022) | -0.54 | 11.46M |
| Q1 2022 (Mar 2022) | -0.12 | 18.39M |
Sorrento Therapeutics published its Q4 2022 result in March 2023 and it missed both its revenue as well as the revenue target.
The Results of the 1st 3 Quarters of 2022
| (USD) | Sep-22 | Jun-22 | Mar-22 |
| Revenue | 17.4M | 11.46M | 18.38M |
| Net income | -89.58M | -218.76M | -40.82M |
| Diluted EPS | -0.2 | -0.54 | -0.12 |
| Net profit margin | -514.80% | -1908.73% | -222% |
| Operating income | -110.14M | -91.88M | -96.71M |
| Net change in cash | 341K | -41.56M | 75.24M |
| Cash on hand | – | – | – |
| Cost of revenue | 76.26M | 54.17M | 69.74M |
Sorrento Stock Techncial Analysis
After being delisted from NASDAQ, the SRNE stock has been trading lower and the price has remained below $0.40. On the last trading day, SRNE closed 1.97% higher.
Here is how Sorrento Therapeutics’ stock performed on the last trading day:
- Open: $0.323
- Close: $0.330
- Profit/Loss: -1.93%
- Market Cap: $181.92 M
Analyzing Sorrento Stock Using Technical Indicators
On the above Bollinger Bands chart, the SRNE stock price is trading below the 20-day MA but slightly above the Lower Bollinger Band. Bollinger Bands are a technical analysis tool that uses standard deviation and moving averages to identify potential trading opportunities. In the case of SRNE stock on the 4-hour timeframe chart, the following are the readings:
- Upper Bollinger Band (UBB): $0.354
- Lower Bollinger Band (LBB): $0.3186
- 20-day moving average (MA): $0.3365
- SRNE stock price: $0.330
Interpretation
From the above data, it is clear that SRNE stock price of $0.330 is below the 20-day moving average of $0.3365 while it is close to the Lower Bollinger Band. The fact that the stock price is below the 20-day moving average and near the Lower Bollinger Band may suggest that the stock is currently oversold, and a potential reversal or bounce back may be possible in the near future.
The SRNE price is on the downtrend and with the increased selling pressure it will likely retest the LBB and potentially fall below it. Overall SRNE stock is bearish but a likely reversal is on the card for the SRNE stock.
The Moving Average Convergence Divergence confirms the bearish outlook of the stock. The MACD line on the MACD chart is below the signal line. The volume histogram bars are within the bearish axis. It is a sell signal.
In the above chart, the net SRNE stock was rejected below the 50-day Moving Average. The stock has been on a downtrend since then. Currently, the Sorrento Stock price is below both 50-day as well as 200-day moving averages.
The 50-day MA for SRNE stock is $0.347 and the 200-day MA is $0.689. The net SRNE stock price is below both the moving averages which indicate a short-term and a long-term term bearish trend.
The support for SRNE stock is around $0.308 while the resistance is $0.408. The Relative Strength Index of the SRNE stock confirms the bearish momentum. The RSI is on a downtrend as the sellers have outnumbered the buyers.
Overall SRNE stock is technically bearish.
Sorrento Stock Forecast Today
| Overall Outlook | Partially Bullish |
| 1. Market's Wisdom | Partially Bullish |
| 1a. Market Data | Neutral |
| 1b. Technical Recommendation | Buy |
| 2. Crowd's Wisdom | Neutral |
| 2a. Social Media Buzz | Steady |
| 2b. Social Media Sentiment | Neutral |
SRNE Stock Forecast: Fundamentals
- PE Ratio: Sorrento has a negative 0.19 Price to earnings ratio due to its negative net income. When we compare this with the industry’s average of negative 2.67, we see that Sorrento can maintain a much better PE ratio, however, this is due to the excessive debt that the company is under which has in turn forced the company to go into liquidation.
- Return on Investment: The company has an extremely bad return on investments standing at a negative 109.8% indicating company’s subpar financial health and low efficiency of operations. Even though the industry average for the trailing twelve months stands at a negative 69.08%, the company has a much worse performance record as far as this metric is concerned.
- Current ratio: The company has a current ratio of 0.88 with cash in hand of just $70 million. The industry’s average when it comes to the current ratio is around 3.65 which shows that the company’s liquidity position is ominous, this was one of the major contributing factors to the decision of opting for bankruptcy.
- Crippling Debt: The company’s bankruptcy intentions were disclosed in an SEC filing and documents that were submitted with it show that it is presently $235 million in debt.
- Cash flow statement: The company has a negative $61 million operating cash flow in the last quarter which demonstrates the company’s flawed operational strategies. The company has used the issuance of stock worth $71 million to cover the cash flows required to keep the business running.
NOTE: SRNE has been delisted from NASDAQ. Now it is listed in OTC Exchange under the ticker symbol SRNEQ
Sorrento Stock Forecast 2023: Latest News
Sorrento Therapeutics, Inc. has been in the news lately due to its consistent affairs with the court.
- According to an SEC filing, the biotech filed for bankruptcy in December 2022 after losing an arbitration case to billionaire Patrick Soon-NantPharma Shiong’s LLC.
- As a result of several breaches in June 2015, Sorrento filed a derivative lawsuit against NantCell Inc and Patrick Soon-Shiong in April 2019 for the benefit of Immunotherapy NANTibody LLC. A jury trial is likely in 2023 in the Derivative Action, which is currently in discovery. Further, the company filed a lawsuit in 2020 against Patrick Soon-Shiong asserting claims of fraudulent inducement and common law fraud. The lawsuit alleged, among other things, that Dr. Soon-Shiong bought Cynviloq so that it would not be commercialized.
- A ruling was issued for NantCell to the tune of $156.8 million and for NANTibody to the tune of $17 million by the arbitrator. The Cynviloq Arbitrator awarded the business contractual damages of $125 million in December 2022, which reflected the value of missed milestone payments for the approval of Cynviloq for breast and lung cancer.
Sorrento (SRNE) Stock Forecast 2023: Macros
The US has been witnessing consistent inflation and interest rate hikes which have made it very difficult for Biotech firms to acquire debt at low cost, thereby making multiple research projects impractical due to a higher IRR caused by a high cost of capital. This has reduced breakthroughs in the industry leaving lesser revenue sources.
Note: Crowdwisdom360 collates Predictions and data from all over the net and has no in-house view on the likely trends in the Index or Individual Stocks. Please consult a registered investment advisor to guide you on your financial decisions.
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