(NOTV) Inotiv - Ratings and Ratios

Inotiv Inc (NASDAQ:NOTV) is a life sciences company that offers a range of services and products to the pharmaceutical and medical device industries globally, operating primarily through its two business segments: Discovery and Safety Assessment (DSA) and Research Models and Services (RMS). The company has a diversified portfolio, including the manufacture of scientific instruments under its BASi product line, which caters to the research needs of pharmaceutical companies, academic institutions, and government research centers. Additionally, Inotiv is involved in the production and sales of research models, diets, bedding, and bioproducts, serving the broader life sciences research community.

With its roots dating back to 1974 as Bioanalytical Systems, Inc., the company rebranded as Inotiv, Inc. in March 2021, marking a significant shift in its corporate identity. Headquartered in West Lafayette, Indiana, Inotiv has established itself as a key player in the life sciences tools and services sector. The companys services and products are crucial for drug discovery and development processes, positioning it as a vital partner for companies in the pharmaceutical and medical device industries.

Analyzing the available , the stock has shown a last price of $2.25, with its 20-day Simple Moving Average (SMA) at $2.00, indicating a recent uptrend. The 50-day SMA is $2.24, close to the current price, suggesting a stable short-term trend. However, the 200-day SMA at $2.74 indicates that the stock is currently trading below its longer-term average, potentially signaling a downtrend over the past year. The Average True Range (ATR) of 0.27, or 12.09% of the last price, suggests moderate volatility. Given the 52-week high of $5.95 and low of $1.28, the stock has shown significant price swings, reflecting the inherent volatility in the life sciences sector.

From a fundamental perspective, Inotivs market capitalization stands at $68.75 million, with a negative Return on Equity (RoE) of -66.17%, indicating that the company is currently not profitable. The absence of a Price-to-Earnings (P/E) ratio, both current and forward, further emphasizes the companys loss-making status. This could be a point of concern for potential investors, suggesting that the company is either in a growth phase or facing operational challenges.

Forecasting Inotivs stock performance involves analyzing both the technical and fundamental data. Given the current price is above its 20-day and 50-day SMAs but below its 200-day SMA, it indicates a potential recovery or stabilization phase after a downtrend. The moderate volatility, as indicated by the ATR, suggests that the stock could see significant price movements in the short term. However, the lack of profitability and negative RoE are significant concerns. If Inotiv can address its profitability issues, either through cost optimization or revenue growth, it could potentially see an improvement in its stock price. Conversely, failure to achieve profitability could lead to further decline. Therefore, a cautious approach is warranted, with a potential buy signal if the company shows signs of achieving profitability and the stock price sustains above its 200-day SMA.