Cara stock: buy or sell?

CARA stock price: $22.16 -3.40% At close on September 20th, 2019

Updated on:
September 20th, 2019

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Shares of Cara Therapeutics plummed a shocking -3.40% and closed at $22.16. Friday was the third red session in a row, sliding in full a -6.62%.

Cara Therapeutics, Inc., a clinical-stage biopharmaceutical company, focuses on developing and commercializing chemical entities designed to alleviate pain and pruritus by selectively targeting kappa opioid receptors in the United States.

Should I buy Cara stock?

Make a decision about when to buy or sell stocks is one of the hardest parts of being a trader or investor. Following a trading strategy helps to make decisions easier, quicker and with less hesitations. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.

None of our preferred buy setups matches with Cara Therapeutics stock situation right now, hence this is not a suitable entry point.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This doesn't mean CARA will slide in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems.

Is Cara stock a buy?

Financial institutions and banks publish stock ratings everyday. At Stocks2.com, we collected 5 ratings published for CARA stock in the last month.

The general sentiment of these ratings is bullish for CARA stock, with 3 positive ratings.
Is CARA a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-8-12HC WainwrightBuyBuy
2019-7-30Piper Jaffray Companiesn/aOverweight
2019-7-22HC WainwrightBuyAverage
2019-2-6Jefferies Financial Groupn/aBuy
2019-1-15Bank of American/aNeutral

Cara stock analysis

Daily outlook

Shares of Cara Therapeutics plummed a shocking -3.40% and closed at $22.16.

Cara shares plummed -3.40% to $22.16 today. Since last June when SMA100d and SMA200d crossed up, CARA price gained $2.32 per share (11.69%). On May CARA price bounced up over the SMA of 200 days demonstrating to be a significant support for this stock.

CARA stock chart (daily)

Weekly outlook

Shares of Cara closed this week at $22.16 and plummed a terrible -4.89%.

Cara stock just marked a top under its last top. Athought it's not a big concern right now, investors should be on alert as this could be a warning for future complications. You should be expectant to Cara price to not slide under , as this would complicate possible price recovery in the short and mid-term. By mid June, SMA20w and SMA40w crossed up triggering a rise of 10.58%. Late May CARA price bounced up over the SMA of 40 weeks that acted as support stopping new slides.

CARA stock chart (weekly)

Cara stock price history

Cara stock went public on January 31st, 2014 with a price of $11.621. Since then, CARA stock surged a 90.70%, with a yearly average of 18.10%. If you had invested $1,000 in Cara stock in 2014, it would worth $907.00 today.

1: Adjusted price after possible price splits or reverse-splits.

Cara stock historical price chart

CARA stock reached 52-week highs on July at $27.55, and all-time highs 2017-06-27 with a price of 28.5.

Cara stock price target is $28.20

How much a stock will be priced tomorrow or next week is quite unpredictable However, many stock price predictions are published every day by banks, financial institutions and independent analysts. You should not follow the analysts' CARA stock price predictions in the hope that they will be met as they may be wrong and not met. We have 5 price forecasts for CARA stock published in the last 30 days:
CARA stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-8-12HC WainwrightReiterates$31.00$30.00-3.2%
2019-7-30Piper Jaffray CompaniesRaises Target$35.00$39.0011.4%
2019-7-22HC WainwrightRaises Target$28.00$31.0010.7%
2019-2-6Jefferies Financial GroupInitiatesn/a$22.00-
2019-1-15Bank of AmericaInitiatesn/a$19.00-
(in average)$31.30$28.20-10.0%
Moving in a range from $39.00 and $19.00, the price prediction for Cara stock is $28.20. In average, analysts' outlook on CARA price target is negative, downgrading the forecast by a -10.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

On March, Cara didn't meet the expectations of the analysts and reported a tragic EPS of $-0.52 per share when experts were expecting $-0.59.
CARA earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q1-n/a-0.81n/a
2017-Q2-n/a-0.29n/a
2017-Q3-n/a-0.38n/a
2017-Q42018-03-15-0.42-0.43n/a
2018-Q12018-05-09-0.47-0.51n/a
2018-Q22018-08-07-0.5-0.52n/a
2018-Q32018-11-06-0.46-0.51n/a
2018-Q42019-03-12-0.59-0.52n/a
2019-Q1-n/an/an/a
2019-Q2-n/an/an/a

Annual financial results

In 2018, Cara annual turnover rocketed an amazing 1,378.49% to $13.47 million dollars from $0.91 marked in 2017. When comparing 2018 vs 2017, likewise, profit margin (that is, the net income divided by revenues) skyrocketed a 5,830.84% to -549.51%.

CARA annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$12 M-$-3.07 M-25.7%-
2014$3.18 M-73.44%$-17.75 M-558.5%478.01%
2015$3.80 M19.70%$-24.69 M-649.2%39.14%
2016$0.09 M-97.74%$-57.28 M-66604.7%132.00%
2017$0.91 M959.30%$-58.13 M-6380.4%1.48%
2018$13 M1,378.49%$-74.01 M-549.5%27.33%

Quarterly financial results

Cara posted $5.53 M in revenues for 2018-Q4, a 9.30% up compared to previous quarter. Reported quarter income marked $-20.65 M with a profit margin of -373.25%. Profit margin soared a 10.00% compared to previous quarter when profit margin was -383.25%. When comparing sales to same quarter last year, Cara Therapeutics sales marked a super good gain and boosted a inf%. Looking back to recent quarterly results, Cara posted 3 positive quarters in a row.
CARA quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q1$1 M-$-22.20 M-2436.9%-
2018-Q2$3 M215.48%$-17.19 M-598.3%-22.55%
2018-Q3$5 M76.13%$-19.40 M-383.2%12.83%
2018-Q4$6 M9.30%$-20.65 M-373.3%6.45%

Cara ownership

When you are planning to invest in a company, it's worth to have a look its ownership structure.

Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For Cara, 2.87% of all outstanding shares are owned by its staff.

In case of Cara Therapeutics stock, 62.37% of its shares are held by institutions (mutual funds, pension funds, big banks and other large financial institutions). Bearish positions for CARA stock account 0.00%, no big difference from last month.

The following table compares ownership indicators for other stocks related to Cara:

CARAACORACRXCPIXDRRX
Market cap$1.0 B$167.9 M$200.2 M$81.3 M$364.7 M
Total shares46.6 M48.1 M79.4 M15.4 M191.9 M
Float shares42.1 M39.5 M78.4 M8.0 M166.6 M
  - Institutional holdings (%)62.4%112.3%19.7%32.5%46.1%
  - Insider holdings (%)2.9%1.8%11.6%42.1%4.0%
Shares in short selling0.0%0.0%0.0%0.0%0.0%

Cara summary

Friday, September 20th, 2019
Open$22.94
Close$22.16
Day range$21.74 - $23.12
Previous close$22.94
Session gain-3.40%
Average true range$0.95
50d mov avg$23.66
100d mov avg$21.84
200d mov avg$19.31
Daily pattern
Weekly pattern lt01a

Cara performance

To better understand Cara Therapeutics performance you must becnhmark its gains with other related stocks in same sector or industry. We chose Acorda Therapeutics, AcelRx Pharmaceuticals, Cumberland Pharmaceuticals, DURECT, Flexion Therapeutics, , Pfizer, Recro Pharma and Trevena as the bechmarking frame for Cara stock.
Stock3m6m12m
CARACara Therapeutics7.36%21.09%-4.40%
ACORAcorda Therapeuti...-53.40%-73.42%-80.82%
ACRXAcelRx Pharmaceut...7.23%-20.25%-36.20%
CPIXCumberland Pharma...-16.03%-18.62%-7.19%
DRRXDURECT211.48%171.43%77.57%
FLXNFlexion Therapeut...26.46%17.76%-20.13%
JNJ-7.74%-3.60%-6.42%
PFEPfizer-15.62%-11.17%-14.22%
REPHRecro Pharma16.45%20.88%66.67%
TRVNTrevena-0.99%-41.18%-41.86%

Cara competitors

We picked a few stocks to conform a list of Cara competitors to review if you are interested in investing in CARA: