Traders Purchase Large Volume of Put Options on Cara Therapeutics (NASDAQ:CARA)

Cara Therapeutics Inc (NASDAQ:CARA) saw unusually large options trading on Thursday. Traders bought 1,683 put options on the company. This is an increase of approximately 2,530% compared to the average daily volume of 64 put options.

CARA has been the topic of a number of analyst reports. BidaskClub lowered Cara Therapeutics from a “hold” rating to a “sell” rating in a research report on Tuesday, October 1st. Piper Jaffray Companies upped their target price on Cara Therapeutics from $35.00 to $39.00 and gave the company an “overweight” rating in a research report on Tuesday, July 30th. HC Wainwright restated a “buy” rating and set a $30.00 target price (down previously from $31.00) on shares of Cara Therapeutics in a research report on Monday, August 12th. Finally, Zacks Investment Research lowered Cara Therapeutics from a “hold” rating to a “sell” rating in a research report on Tuesday. Two investment analysts have rated the stock with a sell rating, one has issued a hold rating and eight have given a buy rating to the company. The company has a consensus rating of “Buy” and a consensus target price of $26.94.

In related news, SVP Frederique Ph.D. Menzaghi sold 4,000 shares of the business’s stock in a transaction on Friday, October 4th. The stock was sold at an average price of $19.19, for a total transaction of $76,760.00. Following the sale, the senior vice president now owns 75,886 shares in the company, valued at approximately $1,456,252.34. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Derek T. Chalmers sold 10,000 shares of the business’s stock in a transaction on Tuesday, October 1st. The stock was sold at an average price of $18.28, for a total value of $182,800.00. Following the sale, the chief executive officer now owns 933,468 shares in the company, valued at approximately $17,063,795.04. The disclosure for this sale can be found here. Insiders have sold a total of 122,927 shares of company stock valued at $2,876,825 in the last three months. 5.80% of the stock is owned by insiders.

Several institutional investors and hedge funds have recently modified their holdings of the stock. First Manhattan Co. grew its holdings in Cara Therapeutics by 97.5% during the second quarter. First Manhattan Co. now owns 1,938,188 shares of the biopharmaceutical company’s stock valued at $41,671,000 after purchasing an additional 956,968 shares during the period. ETF Managers Group LLC bought a new position in Cara Therapeutics during the second quarter valued at $20,490,000. Farallon Capital Management LLC bought a new position in Cara Therapeutics during the second quarter valued at $20,454,000. C WorldWide Group Holding A S grew its holdings in Cara Therapeutics by 390.4% during the second quarter. C WorldWide Group Holding A S now owns 703,460 shares of the biopharmaceutical company’s stock valued at $15,124,000 after purchasing an additional 560,000 shares during the period. Finally, Price T Rowe Associates Inc. MD grew its holdings in Cara Therapeutics by 10.5% during the second quarter. Price T Rowe Associates Inc. MD now owns 2,800,339 shares of the biopharmaceutical company’s stock valued at $60,207,000 after purchasing an additional 266,749 shares during the period. 64.94% of the stock is owned by institutional investors.

Shares of Cara Therapeutics stock traded up $0.22 on Friday, hitting $18.85. The company had a trading volume of 407,733 shares, compared to its average volume of 826,577. The stock has a market capitalization of $721.70 million, a price-to-earnings ratio of -9.15 and a beta of 2.22. Cara Therapeutics has a 1 year low of $12.19 and a 1 year high of $27.55. The stock has a 50 day moving average of $21.60 and a 200-day moving average of $21.04. The company has a debt-to-equity ratio of 0.04, a quick ratio of 3.11 and a current ratio of 3.11.

Cara Therapeutics (NASDAQ:CARA) last issued its quarterly earnings data on Wednesday, August 7th. The biopharmaceutical company reported ($0.58) EPS for the quarter, topping the consensus estimate of ($0.61) by $0.03. The firm had revenue of $5.21 million during the quarter, compared to the consensus estimate of $5.14 million. Cara Therapeutics had a negative return on equity of 68.36% and a negative net margin of 420.97%. Equities analysts anticipate that Cara Therapeutics will post -2.32 earnings per share for the current year.

Cara Therapeutics Company Profile

Cara Therapeutics, Inc, a clinical-stage biopharmaceutical company, focuses on developing and commercializing chemical entities with a primary focus on pruritus and pain by selectively targeting kappa opioid receptors in the United States. The company is developing product candidates that target the body's peripheral nervous system and immune cells.

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