Scilex Holding Company (NASDAQ: SCLX)’s stock price has plunge by -4.35relation to previous closing price of 1.15. Nevertheless, the company has seen a -3.51% plunge in its stock price over the last five trading sessions. globenewswire.com reported 2024-09-03 that PALO ALTO, Calif., Sept. 03, 2024 (GLOBE NEWSWIRE) — Semnur Pharmaceuticals, Inc. (“Semnur”), a wholly owned subsidiary of Scilex Holding Company (Nasdaq: SCLX, “Scilex”), an innovative revenue-generating company focused on acquiring, developing and commercializing non-opioid pain management products for the treatment of acute and chronic pain, and Denali Capital Acquisition Corp., a Cayman Islands exempted company and special purpose acquisition company (Nasdaq: DECA, the “SPAC”), today announced the signing of an agreement and plan of merger for a proposed business combination, by and among Semnur, the SPAC and Denali Merger Sub Inc., a Delaware Corporation and wholly owned subsidiary of the SPAC, which provides for a pre-transaction equity value of Semnur at $2.5 billion. Prior to the closing of the transaction, the SPAC will be redomesticated as a Delaware corporation. Upon closing of the transaction, the combined company (the “Combined Company”) will be renamed Semnur Pharmaceuticals, Inc., and its common stock and warrants are expected to be listed on Nasdaq under the ticker symbols “SMNR” and “SMNRW”, respectively. The boards of directors of each of the SPAC, Semnur and Scilex have unanimously approved the proposed transaction. The closing of the transaction, which is expected to occur by the first quarter of 2025, is subject to the approval of the SPAC’s shareholders, any applicable regulatory approval, and the satisfaction or waiver of certain other closing conditions.
Is It Worth Investing in Scilex Holding Company (NASDAQ: SCLX) Right Now?
Company’s 36-month beta value is 1.19.Analysts have differing opinions on the stock, with 2 analysts rating it as a “buy,” 0 as “overweight,” 0 as “hold,” and 0 as “sell.”
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The public float for SCLX is 125.34M, and currently, short sellers hold a 6.57% ratio of that floaft. The average trading volume of SCLX on September 03, 2024 was 1.20M shares.
SCLX’s Market Performance
SCLX stock saw a decrease of -3.51% in the past week, with a monthly decline of -23.61% and a quarterly a decrease of 0.92%. The volatility ratio for the week is 6.63%, and the volatility levels for the last 30 days are 7.71% for Scilex Holding Company (SCLX). The simple moving average for the past 20 days is -11.54% for SCLX’s stock, with a -23.14% simple moving average for the past 200 days.
Analysts’ Opinion of SCLX
Many brokerage firms have already submitted their reports for SCLX stocks, with Rodman & Renshaw repeating the rating for SCLX by listing it as a “Buy.” The predicted price for SCLX in the upcoming period, according to Rodman & Renshaw is $13 based on the research report published on June 13, 2024 of the current year 2024.
B. Riley Securities, on the other hand, stated in their research note that they expect to see SCLX reach a price target of $4. The rating they have provided for SCLX stocks is “Buy” according to the report published on October 16th, 2023.
B. Riley Securities gave a rating of “Buy” to SCLX, setting the target price at $4 in the report published on October 13th of the previous year.
SCLX Trading at -29.24% from the 50-Day Moving Average
After a stumble in the market that brought SCLX to its low price for the period of the last 52 weeks, the company was unable to rebound, for now settling with -66.05% of loss for the given period.
Volatility was left at 7.71%, however, over the last 30 days, the volatility rate increased by 6.63%, as shares sank -20.69% for the moving average over the last 20 days. Over the last 50 days, in opposition, the stock is trading -36.55% lower at present.
During the last 5 trading sessions, SCLX fell by -2.60%, which changed the moving average for the period of 200-days by -9.72% in comparison to the 20-day moving average, which settled at $1.2290. In addition, Scilex Holding Company saw -46.08% in overturn over a single year, with a tendency to cut further losses.
Insider Trading
Reports are indicating that there were more than several insider trading activities at SCLX starting from Ji Henry, who purchase 50,000 shares at the price of $0.88 back on May 17 ’24. After this action, Ji Henry now owns 50,070 shares of Scilex Holding Company, valued at $43,985 using the latest closing price.
Chun Jay, the Director of Scilex Holding Company, purchase 57,500 shares at $0.90 during a trade that took place back on May 17 ’24, which means that Chun Jay is holding 102,500 shares at $51,641 based on the most recent closing price.
Stock Fundamentals for SCLX
Current profitability levels for the company are sitting at:
- -1.95 for the present operating margin
- 0.62 for the gross margin
The net margin for Scilex Holding Company stands at -2.34. The total capital return value is set at 0.66. Equity return is now at value -163.31, with -102.93 for asset returns.
Based on Scilex Holding Company (SCLX), the company’s capital structure generated -0.96 points at debt to capital in total, while cash flow to debt ratio is standing at 0.12. The debt to equity ratio resting at -0.49. The interest coverage ratio of the stock is -45.77.
Currently, EBITDA for the company is -101.28 million with net debt to EBITDA at -1.05. When we switch over and look at the enterprise to sales, we see a ratio of 6.14. The receivables turnover for the company is 1.34for trailing twelve months and the total asset turnover is 0.49. The liquidity ratio also appears to be rather interesting for investors as it stands at 0.20.
Conclusion
In a nutshell, Scilex Holding Company (SCLX) has experienced a bad performance in recent times. The stock has received mixed “buy” and “hold” ratings from analysts. It’s important to note that the stock is currently trading at a significant distance from its 50-day moving average and its 52-week high.
