Vital Therapies, Inc. (NASDAQ:VTL) at ‘Overbought’ Based on Its RSI

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Vital Therapies, Inc. (NASDAQ:VTL) has reached an overbought level with a 14-day RSI of 88.67.

The Relative Strength Index (RSI) is a recognized technical indicator used to ascertain strengthening and weakening momentum in stock price. An RSI above 70 is an overbought indication with RSI’s under 30 indicating oversold. Overbought is a condition that occurs when price momentum is considered too high and susceptible to a decline.

Volatility

Vital Therapies, Inc. has a beta of 5.15 meaning it is more volatile than the market as a whole that has a beta of 1. Stocks with beta’s lower than 1 are less risky while those with a higher beta may be more risky than the market.

The stock’s Average True Range (ATR) is currently 0.30. The ATR is a measure of volatility. It doesn’t indicate the likely direction of the stock price, just the likelihood that the stock will move.

It is currently trading at $4.85 significantly above the 50 day moving average which is $3.18 and which is quite a bit higher than the 200 day moving average of $3.35. The 50 day moving average was up $1.67 or +52.65% and the 200 day average went up by +44.99%.

Short Interest

Traders are a little more bearish on shares of the company of late if you look at the increase in short interest. The stock experienced a rise in short interest of 4.85% as of the latest report on August 31, 2017. Short interest increased 90,432 over that timeframe. With short interest at 1,953,999 and short average daily volume at 100,060, days to cover is 20.0 and the percentage of shorted shares was 0.05% on August 31.

Insider Activity

There has been some buying insider activity on Vital Therapies, Inc. (NASDAQ:VTL) recently. Muneer A. Satter, Director acquired $525,200 worth of shares at a price of $4.04 on September 14th. The Director now owns $44,974,399 of the stock per an SEC filing yesterday. Director Faheem Hasnain disclosed the purchase of 59,200 shares of VTL stock. The shares were purchased at an average price of $4.19. Hasnain now owns $762,341 of the stock per the Form 4 SEC filing.

Jean Jacques Bienaime, Director bought $40,000 worth of shares at an average price of $4.00 on Wed the 13th. That brings the Director’s holdings to $260,476 as reported to the SEC.

As of the last earnings report the EPS was $-1.35 and is expected to be $-1.31 for the current year with 42,207,000 shares presently outstanding. Analysts expect next quarter’s EPS will be $-0.33 with next year’s EPS anticipated to be $-1.30.

Company Information

Vital Therapies, Inc., launched on January 13, 2004, is a biotherapeutic company. The Company is focused on developing a human hepatic cell-based treatment targeting acute forms of liver failure. Its product candidate, the ELAD System, is an extracorporeal human allogeneic cellular liver therapy designed to allow the patient’s liver to regenerate to a healthy state, or to stabilize the patient until transplant. The ELAD System is a liver support system containing immortal human liver-derived cells, or VTL C3A cells. The Company initiated a Phase III clinical trial in severe acute alcoholic hepatitis (sAAH), referred to as VTL-308. VTL-308 is a randomized, open-label, multicenter, controlled, pivotal study, designed to evaluate the ELAD System in subjects with sAAH. It is based on pre-specified and post-hoc analyses of its VTI-208 phase III clinical trial in alcohol-induced liver decompensation (AILD). The Business’s ELAD System consists of approximately four disposable ELAD C3A cell cartridges containing its human liver-derived C3A cells attached to a reusable delivery device using customized disposable tubing sets. The delivery device is based on a cardio-pulmonary bypass machine, which it has configured for the ELAD System treatment. This unit and customized disposable sets are attached to the ELAD C3A cell cartridges where the patient’s blood plasma is treated by its VTL C3A cells before being returned to the patient. Treatment will generally consist of a single session of continuous allogeneic cellular therapy..