Travere Therapeutics Inc (TVTX) Surge: Is It Sustainable?

Guggenheim has recently raised Travere Therapeutics Inc (TVTX) stock to Buy rating, as announced on September 9, 2024, according to Finviz. Earlier, on March 27, 2024, Guggenheim had reduced the stock from a Buy to Neutral. Citigroup also raised Buy rating with a price target of $10. Additionally, Citigroup initiated Neutral rating on November 20, 2023, with a target price of $7. Wells Fargo analysts, in their report published on September 22, 2023, also reduced Equal Weight rating and set a price target of $8 for Travere Therapeutics Inc’s stock. Analyst ratings are significant because they provide insights into stock performance expectations, influencing investor decisions and market sentiment.


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Travere Therapeutics Inc (TVTX) Stock Trading Recap

On Friday, Travere Therapeutics Inc (TVTX) stock saw a modest uptick, ending the day at $15.23 which represents a slight increase of $1.58 or 11.58% from the prior close of $13.65. The stock opened at $13.87 and touched a low of $13.82 during the day, reaching a high of $15.46. The volume of shares traded was 3.18 million exceeding the average volume of 1.52 million.

TVTX Stock Performance and Moving Averages

In recent trading, Travere Therapeutics Inc (TVTX) stock price has shown some volatility, fluctuating 8.71% over the last five trades and 53.37% over the past 30 trades. This represents a notable shift from earlier in the year. Over the last six months, the stock has risen by 116.34%, and it has gained 74.66% in the previous three months. Currently, TVTX is trading at 10.18%, 38.51%, and 76.31% relative to its 20-Day, 50-Day, and 200-Day Simple Moving Averages, respectively.

As of the latest trading close, TVTX, a Healthcare sector stock, is trading -0.85% below its 52-week high but remains 197.46% above its 52-week low. The Average True Range (ATR) (14 days) of 0.88 highlights the stock’s average volatility, providing insight into how much the price typically fluctuates. This measure is crucial for understanding potential price swings and assessing overall market risk.

Travere Therapeutics Inc’s Profitability and Valuation Ratios

Travere Therapeutics Inc’s profitability metrics reveal strong financial health. The company currently boasts an operating margin of -178.02% and a profit margin of -209.36%, with a gross margin of 116.34%. The profit margin, also known as the revenue ratio or gross profit ratio, measures how efficiently a company converts sales into net income; higher margins indicate greater profitability.

In terms of valuation, Travere Therapeutics Inc’s market capitalization stands at $1.16 billion. Market cap represents the total value of all outstanding shares and is a key indicator of a company’s market value. Additionally, the Price-to-Sales Ratio is 6.56, reflecting the market’s valuation of the company’s sales, while the Price-to-Book Ratio is 76.88, comparing the market value to the company’s book value.

Understanding Insider Trading

Investors often prefer to invest in shares held by company insiders, as management is typically more aligned with the company’s success and shareholder interests. Currently, insiders own just 1.51% of Travere Therapeutics Inc (TVTX)’s shares, while financial institutions hold 117.57%.

Notable insider trades include LYONS GARY A, Director at Travere Therapeutics Inc (TVTX), who sold 40000 shares on Oct 04 ’24, at $14.73 each, totaling $0.59 million. On Sep 30 ’24, Meckler Jeffrey A, Director, sold 40000 shares for $14.06 each, amounting to $0.56 million. Additionally, on Sep 09 ’24, Dube Eric M sold 21125 shares at $11.52 each, generating $0.24 million.

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