DURECT stock: buy or sell?

DRRX stock price: $2.14 12.63% At close on September 20th, 2019

Updated on:
September 20th, 2019

2

DURECT shares boosted 12.63% to $2.14 today.

DURECT Corporation, a biopharmaceutical company, researches and develops medicines based on its epigenetic regulator and drug delivery programs.

Should I buy DURECT stock?

You can't be a successful trader if you don't follow a methodolgy or system that assist you in choosing companies and the correct market timing. Trading strategies are meant for helping you in the decision process of what stocks to choose and when is the best moment to buy them. There are thousands of trading strategies for you to choose, but at Stocks2.com we prefer those that are simple but successful.

Only 1 of our buy setups matches with DURECT stock now:

Buy setupElegible
New all-time highNo
New 52 week highYes
Price crossing up 200d MANo
100d MA crossing up 200d MANo

Is DURECT stock a buy?

Financial institutions and banks post stock ratings everyday. At Stocks2.com, we gathered 4 ratings published for DRRX stock in the last month.

The general sentiment of these ratings is bullish for DRRX stock, with 3 positive ratings.
Is DRRX a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-9-6Cantor Fitzgeraldn/aOverweight
2019-9-18Stifel Nicolausn/aHold
2019-9-10HC Wainwrightn/aBuy
2019-1-7HC Wainwrightn/aBuy

DURECT stock analysis

Daily outlook

DURECT shares boosted 12.63% to $2.14 today.

Shares of DURECT ended today at $2.14 and boosted an extraordinary 12.63%. Since last Aug/15 when SMA100d and SMA200d crossed up, DRRX price gained $0.83 per share (63.36%). Since price and SMA200d lines crossed up on July, DRRX climbed $1.47 (219.40%). From a daily perspective, DRRX is in a short term uptrend after plotting its last bottom ($1.66, on September/12) higher than the previous bottom, and its last top ($2.00, on Tuesday) also over the previous top. Now trading in between its last bottom and last top DRRX might consolidate in a plain range, waiting to break out over $2.00 or down under $1.66.

DRRX stock chart (daily)

Weekly outlook

Shares of DURECT boosted an astounding 22.29% this week. By mid August DRRX collapsed a dreadful -5.88% in just one week.

Price finally broke over the resistance at $0.76 and continued climbing. Early August, SMA20w and SMA40w crossed up triggering a rise of 71.20%. Since mid July when DRRX stock price broke up the SMA40w line, it gained $1.48 (224.24%).

DRRX stock chart (weekly)

DURECT stock price history

DURECT stock went public on September 28th, 2000 with a price of $16.751. Since then, DRRX stock lost a -87.20%, with a yearly average of -4.80%.

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

DURECT stock historical price chart

DRRX stock reached 52-week highs today at $2.19, and all-time highs 2000-09-28 with a price of 18.5.

DURECT stock price target is $3.40

Nobody can reliably foresee how stock prices may evolve in the future. However, financial institutions invest time and resources to provide the most accurated estimations to help investors to make their decisions. You should not follow the analysts' DRRX stock price predictions in the hope that they will be met as they may be wrong and not met. For the last 30 days we found 4 price targets for DRRX stock:
DRRX stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-9-6Cantor FitzgeraldInitiatesn/a$5.00-
2019-9-18Stifel NicolausRaises Target$1.50$2.1040%
2019-9-10HC WainwrightReiteratesn/a$3.50-
2019-1-7HC WainwrightReiteratesn/a$3.00-
(in average)$1.50$3.40127.0%
The price forecast for DURECT stock is $3.40, moving in a range between $5.00 and $2.10. In average, analysts' outlook on DRRX price target is positive, increasing the target by a 127.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

Since last March, when DURECT presented its last earnings report, it . Unfortunately, reported EPS is not yet available in our database.
DRRX earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q1-n/a-0.06n/a
2017-Q2-n/a-0.07n/a
2017-Q32017-10-31-0.06-0.04n/a
2017-Q42018-03-01-0.060.05n/a
2018-Q12018-05-02-0.06-0.05n/a
2018-Q22018-08-01-0.06-0.04n/a
2018-Q32018-11-07-0.03-0.02n/a
2018-Q42019-03-07-0.05-0.05n/a
2019-Q1-n/an/an/a
2019-Q2-n/an/an/a

Annual financial results

In 2018, DURECT annual sales plunged a bloodcurdling -62.25% to $18.56 M USD from $49.17 marked in 2017. Aligned with this, its earnings margin (compared to revenues) collapsed to -136.40%, that is $-25.32 million.

DRRX annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$15 M-$-21.45 M-139.9%-
2014$19 M26.56%$-22.11 M-114.0%3.08%
2015$19 M-1.43%$-22.66 M-118.5%2.50%
2016$14 M-26.66%$-34.51 M-246.1%52.27%
2017$49 M250.59%$-3.70 M-7.5%-89.29%
2018$19 M-62.25%$-25.32 M-136.4%585.30%

Quarterly financial results

DURECT posted $3.63 million in revenues for 2018-Q4, a -54.87% less compared to previous quarter. Reported quarter earnings marked $-7.30 M with a profit margin of -201.24%. Profit margin plunged a -167.46% compared to previous quarter when profit margin was -33.79%. When comparing revenues to same quarter last year, DURECT sales marked a frightening correction and plummed a -81.44%.
DRRX quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q1$5 M-$-8.11 M-177.5%-
2017-Q2$4 M-5.47%$-9.93 M-229.9%22.44%
2017-Q3$21 M380.23%$6.11 M29.5%-161.54%
2017-Q4$20 M-5.82%$8.24 M42.1%34.76%
2018-Q1$3 M-82.15%$-8.30 M-237.9%-200.75%
2018-Q2$3 M-2.15%$-7.01 M-205.4%-15.50%
2018-Q3$8 M135.45%$-2.72 M-33.8%-61.28%
2018-Q4$4 M-54.87%$-7.30 M-201.2%168.84%

DURECT ownership

When you are planning to buy shares of a stock, it's worth to check its ownership structure.

DURECT shares owned by insiders (that is, founders, CEO, CTO, main executives or other management staff) currently counts a 3.97% of all shares.

In case of DURECT stock, 46.07% of its shares are held by institutions (mutual funds, pension funds, big banks and other large financial institutions). Bearish positions for DRRX stock account 0.00%, no big difference from last month.

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

DRRXHRTXJNJLLYPCRX
Market cap$410.8 M$1.5 B$343.5 B$112.1 B$1.5 B
Total shares191.9 M79.8 M2,640.0 M965.4 M41.6 M
Float shares166.6 M67.8 M2,630.0 M796.2 M41.4 M
  - Institutional holdings (%)46.1%117.6%69.2%81.5%103.6%
  - Insider holdings (%)4.0%0.1%0.1%0.1%0.7%
Shares in short selling0.0%0.0%0.0%0.0%0.0%

DURECT summary

Friday, September 20th, 2019
Open$1.92
Close$2.14
Day range$1.90 - $2.19
Previous close$1.90
Session gain12.63%
Average true range$0.13
50d mov avg$1.37
100d mov avg$1.00
200d mov avg$0.83
Daily patternlt06a
Weekly pattern lb01c

DURECT performance

To better understand DURECT performance you must compare its gains with other related stocks in same sector or industry. We compared DURECT against Heron Therapeutics, , Eli Lilly and, Pacira Pharmaceuticals, Pfizer and Zogenix in the following table:
Stock3m6m12m
DRRXDURECT250.82%205.71%100.00%
HRTXHeron Therapeutic...4.98%-18.38%-38.18%
JNJ-7.74%-3.60%-6.42%
LLYEli Lilly and1.14%-8.44%11.63%
PCRXPacira Pharmaceut...-15.51%-2.77%-26.42%
PFEPfizer-15.62%-11.17%-14.22%
ZGNXZogenix1.99%-21.33%-15.71%

DURECT competitors

We chose a few stocks to conform a list of DURECT competitors to check if you are interested in investing in DRRX: