Otonomy (NASDAQ:OTIC) Lifted to “Buy” at Zacks Investment Research

Otonomy (NASDAQ:OTIC) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research note issued to investors on Wednesday, Zacks.com reports. The brokerage currently has a $2.50 target price on the biopharmaceutical company’s stock. Zacks Investment Research‘s price objective points to a potential upside of 13.64% from the stock’s current price.

According to Zacks, “Otonomy, Inc. engages in developing and commercializing therapeutics to address unmet medical needs in the otology market. It develops therapeutics for treatment of inner and middle ear disorders. The Company’s product candidates under development includes AuriPro to treat pediatric patients with middle ear effusion; and OTO-104 for the treatment of patients with Ménière’s disease. Otonomy, Inc. is headquartered in San Diego, California. “

Several other equities research analysts have also recently commented on OTIC. ValuEngine raised Otonomy from a “sell” rating to a “hold” rating in a report on Thursday, August 1st. HC Wainwright started coverage on Otonomy in a report on Thursday, August 29th. They issued a “buy” rating and a $8.00 price target for the company. One research analyst has rated the stock with a hold rating and four have assigned a buy rating to the stock. The stock has an average rating of “Buy” and an average price target of $5.17.

NASDAQ:OTIC opened at $2.20 on Wednesday. Otonomy has a one year low of $1.50 and a one year high of $3.15. The company has a debt-to-equity ratio of 0.52, a quick ratio of 7.32 and a current ratio of 7.32. The stock has a market cap of $68.88 million, a PE ratio of -1.33 and a beta of 2.51. The stock has a 50 day moving average price of $2.18 and a 200 day moving average price of $2.50.

Otonomy (NASDAQ:OTIC) last posted its quarterly earnings results on Thursday, August 1st. The biopharmaceutical company reported ($0.38) EPS for the quarter, beating the consensus estimate of ($0.48) by $0.10. Otonomy had a negative return on equity of 65.91% and a negative net margin of 6,984.64%. The firm had revenue of $0.19 million during the quarter, compared to analysts’ expectations of $0.50 million. As a group, analysts predict that Otonomy will post -1.7 earnings per share for the current fiscal year.

A number of hedge funds have recently bought and sold shares of OTIC. Acadian Asset Management LLC increased its stake in Otonomy by 5.1% during the second quarter. Acadian Asset Management LLC now owns 125,088 shares of the biopharmaceutical company’s stock worth $345,000 after acquiring an additional 6,044 shares during the last quarter. Renaissance Technologies LLC increased its stake in Otonomy by 5.2% during the second quarter. Renaissance Technologies LLC now owns 1,722,917 shares of the biopharmaceutical company’s stock worth $4,738,000 after acquiring an additional 85,569 shares during the last quarter. Sofinnova Investments Inc. increased its stake in Otonomy by 30.6% during the second quarter. Sofinnova Investments Inc. now owns 1,337,568 shares of the biopharmaceutical company’s stock worth $3,679,000 after acquiring an additional 313,703 shares during the last quarter. BlackRock Inc. increased its stake in Otonomy by 1.0% during the second quarter. BlackRock Inc. now owns 844,466 shares of the biopharmaceutical company’s stock worth $2,322,000 after acquiring an additional 8,148 shares during the last quarter. Finally, Eversept Partners LP increased its stake in Otonomy by 8.0% during the second quarter. Eversept Partners LP now owns 194,429 shares of the biopharmaceutical company’s stock worth $535,000 after acquiring an additional 14,329 shares during the last quarter. 53.28% of the stock is owned by institutional investors.

Otonomy Company Profile

Otonomy, Inc, a biopharmaceutical company, develops therapeutics for neurotology in the United States. The company offers OTIPRIO, a ciprofloxacin otic suspension for use during tympanostomy tube placement surgery in pediatric patients. It also develops OTIVIDEX, a sustained-exposure formulation of the steroid dexamethasone in Phase III clinical trial for the treatment of Ménière's disease; OTO-313, a sustained-exposure formulation of N-methyl-D-aspartate receptor antagonist gacyclidine, which is in Phase I/II clinical trial to treat tinnitus; and OTO-413, a proprietary formulation of brain-derived neurotrophic factor that is in Phase I/II clinical trial for the repair of cochlear synaptopathy and the treatment of speech-in-noise hearing difficulties.

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