Why Investors Shouldn’t Be Surprised By Prothena Corporation plc’s (NASDAQ:PRTA) 27% Share Price Plunge
Unfortunately for some shareholders, the Prothena Corporation plc (NASDAQ:PRTA) share price has dived 27% in the last thirty days, prolonging recent pain. The recent drop completes a disastrous twelve months for shareholders, who are sitting on a 68% loss during that time.
Since its price has dipped substantially, Prothena may look like a strong buying opportunity at present with its price-to-sales (or “P/S”) ratio of 2.7x, considering almost half of all companies in the Biotechs industry in the United States have P/S ratios greater than 8.2x and even P/S higher than 45x aren’t out of the ordinary. Nonetheless, we’d need to dig a little deeper to determine if there is a rational basis for the highly reduced P/S.
We’ve…
