Is There Now An Opportunity In Flexion Therapeutics Inc (FLXN)?
Flexion Therapeutics Inc (NASDAQ:FLXN), a biotechnology company based in United States, saw a double-digit share price rise of over 10% in the past couple of months on the NasdaqGM. As a stock with high coverage by analysts, you could assume any recent changes in the company’s outlook is already priced into the stock. However, could the stock still be trading at a relatively cheap price? Let’s take a look at FLXN’s outlook and value based on the most recent financial data to see if the opportunity still exists. Check out our latest analysis for Flexion Therapeutics
What is FLXN worth?
According to my valuation model, the stock is currently overvalued by about 41%, trading at $23.47 compared to my intrinsic value of $16.6. This means that the buying opportunity has probably disappeared for now. But, is there another opportunity to buy low in the future? Given that FLXN’s share is fairly volatile (i.e. its price movements are magnified relative to the rest of the market) this could mean the price can sink lower, giving us another chance to buy in the future. This is based on its high beta, which is a good indicator for share price volatility.
What does the future of FLXN look like?
Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. With profit expected to grow by 93.01% over the next couple of years, the future seems bright for FLXN. It looks like higher cash flows is on the cards for the stock, which should feed into a higher share valuation.
What this means for you:
Are you a shareholder? It seems like the market has well and truly priced in FLXN’s positive outlook, with shares trading above its fair value. At this current price, shareholders may be asking a different question – should I sell? If you believe FLXN should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable. But before you make this decision, take a look at whether its fundamentals have changed.
Are you a potential investor? If you’ve been keeping an eye on FLXN for a while, now may not be the best time to enter into the stock. The price has surpassed its true value, which means there’s no upside from mispricing. However, the positive outlook is encouraging for FLXN, which means it’s worth diving deeper into other factors in order to take advantage of the next price drop.
Price is just the tip of the iceberg. Dig deeper into what truly matters – the fundamentals – before you make a decision on Flexion Therapeutics. You can find everything you need to know about FLXN in the latest infographic research report. If you are no longer interested in Flexion Therapeutics, you can use our free platform to see my list of over 50 other stocks with a high growth potential.
To help readers see pass the short term volatility of the financial market, we aim to bring you a long-term focused research analysis purely driven by fundamental data. Note that our analysis does not factor in the latest price sensitive company announcements.
The author is an independent contributor and at the time of publication had no position in the stocks mentioned.
