Cardiff Oncology (CRDF) appears to be a high-risk investment with potential for substantial volatility, as indicated by the following analysis:
- Financial Performance and Growth Rates:
- Cardiff Oncology reported a net loss of $11.78 million and a total revenue of $163,000 for the most recent quarter, resulting in a negative net margin of 6,143.91%1. The company's net income has decreased by 5.63% and its revenue has increased by 50.93% compared to the previous year, but the net margin has deteriorated significantly2.
- Diluted earnings per share (EPS) were -$0.26, missing analysts' estimates by ($0.01), indicating poor financial performance34.
- Analyst Ratings and Price Target:
- Despite the negative financials, analysts have set a "buy" rating on CRDF with a price target of $8.00, suggesting a potential upside of 279.15%53. This indicates a significant confidence in the company's future performance.
- Institutional Interest and Short Interest:
- Institutional ownership has seen significant increases, with Assenagon Asset Management S.A. boosting its holdings by 380.6% and Vanguard Group Inc. growing its position by 0.5%6. This could be a positive sign for investors looking for companies with strong institutional backing.
- Short interest in CRDF increased by 16.3% in August, indicating that investors are bearish on the stock4.
- Market Volatility and Valuation:
- The stock has a high beta of 1.95, suggesting that it is more volatile than the market36.
- Valuation metrics may indicate that CRDF is overvalued, with a Value Score of F7.
- Comparison with Peers:
- CRDF is being compared to other small-cap medical companies, with varying results. For instance, it has a higher net margin than some peers but a lower net margin than others89.
- CRDF has a stronger consensus rating and higher potential upside compared to some of its competitors1112.
In conclusion, while analysts have set a high price target for CRDF, the company's current financial performance and volatility suggest a high-risk investment. Potential investors should carefully consider these factors and weigh them against the potential for future growth and the company's competitive position in the medical sector.