How Stable And Growing Is ATAI Life Sciences N.V. (NASDAQ: ATAI)?

ATAI Life Sciences N.V. (NASDAQ:ATAI) shares, rose in value, with the stock price up by 27.81% to the previous day’s close as strong demand from buyers drove the stock to $2.39.

Actively observing the price movement in the last trading, the stock closed the session at $1.87. The value of beta (5-year monthly) was 0.96. Referring to stock’s 52-week performance, its high was $2.39, and the low was $1.02. On the whole, ATAI has fluctuated by 14.35% over the past month.

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With the market capitalization of ATAI Life Sciences N.V. currently standing at about $396.81 million, investors are eagerly awaiting this quarter’s results, scheduled for Mar 19, 2024 – Mar 26, 2024. As a result, investors might want to see an improvement in the stock’s price before the company announces its earnings report. Analysts are projecting the company’s earnings per share (EPS) to be -$0.17, which is expected to increase to -$0.16 for fiscal year -$0.76 and then to about -$0.75 by fiscal year 2025. Data indicates that the EPS growth is expected to be -204.00% in 2025, while the next year’s EPS growth is forecast to be 1.30%.

Wall Street analysts also predicted that in 2025, the company’s y-o-y revenues would reach $300k, representing a decrease of -4.50% from the revenues reported in the last year’s results.

Revisions could be a useful indicator to get insight on short-term price movement; so for the company, there were no upward and no downward review(s) in last seven days. We see that ATAI’s technical picture suggests that short-term indicators denote the stock is a 75% Buy on average. However, medium term indicators have put the stock in the category of 100% Buy while long term indicators on average have been pointing out that it is a 100% Buy.

The stock’s technical analysis shows that the PEG ratio is about 0, with the price of ATAI currently trading nearly 30.14% and 29.81% away from the simple moving averages for 20 and 50 days respectively. The Relative Strength Index (RSI, 14) currently indicates a reading of 69.02, while the 7-day volatility ratio is showing 15.19% which for the 30-day chart, stands at 10.19%. Furthermore, ATAI Life Sciences N.V. (ATAI)’s beta value is 0.97, and its average true range (ATR) is 0.19.

A comparison of ATAI Life Sciences N.V. (ATAI) with its peers suggests the former has fared considerably weaker in the market. ATAI showed an intraday change of 27.81% in last session, and over the past year, it grew by 32.04%%.

Data on historical trading for ATAI Life Sciences N.V. (NASDAQ:ATAI) indicates that the trading volumes over the past 10 days have averaged 2.29 million and over the past 3 months, they’ve averaged 1.52 million. According to company’s latest data on outstanding shares, there are 166.03 million shares outstanding.

Nearly 30.51% of ATAI Life Sciences N.V.’s shares belong to company insiders and institutional investors own 8.22% of the company’s shares. The data on short interest also indicates that stock shorts accounted for 5.21 million shares as on Mar 15, 2024, resulting in a short ratio of 3.34. According to the data, the short interest in ATAI Life Sciences N.V. (ATAI) stood at 3.14% of shares outstanding as of Mar 15, 2024; the number of short shares registered in Feb 15, 2024 reached 4.87 million. The stock has risen by 69.50% since the beginning of the year, thereby showing the potential of a further growth. This could raise investors’ confidence to be optimistic about the ATAI stock heading into the next quarter.