Within the last quarter, Cara Therapeutics CARA has observed the following analyst ratings:

According to 4 analyst offering 12-month price targets in the last 3 months, Cara Therapeutics has an average price target of $4.12 with a high of $7.00 and a low of $1.00.

Check out a summary of analyst ratings for Cara Therapeutics by 4 analysts in the last 3 months. A higher proportion of bullish ratings indicates positive sentiment, while bearish ratings suggest a negative outlook.

A decline of 70.57% from the prior average price target is evident in the current average.

Investigating Analyst Ratings: An Elaborate Study

Navigate through the viewpoints of financial experts and analysts with an in-depth analysis of their recent evaluations for Cara Therapeutics. The Ratings Table below offers a comprehensive overview of the decisions made by influential analysts, their current ratings, and price targets. Gaining insights into the perceptions of these experts towards the company can unveil valuable perspectives on possible market trends and investor sentiment.

Key Insights:

• Action Taken: Analysts respond to changes in market conditions and company performance, frequently updating their recommendations. Whether they 'Maintain', 'Raise' or 'Lower' their stance, it reflects their reaction to recent developments related to Cara Therapeutics. This information offers a snapshot of how analysts perceive the current state of the company.
• Rating: Analysts assign qualitative assessments to stocks, ranging from 'Outperform' to 'Underperform'. These ratings convey the analysts' expectations for the relative performance of Cara Therapeutics compared to the broader market.
• Price Targets: Analysts provide insights into price targets, offering estimates for the future value of Cara Therapeutics's stock. This comparison reveals trends in analysts' expectations over time.

For valuable insights into Cara Therapeutics's market performance, consider these analyst evaluations alongside crucial financial indicators. Stay well-informed and make prudent decisions using our Ratings Table.

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Discovering Cara Therapeutics: A Closer Look

Cara Therapeutics Inc is an emerging biotechnology company involved in the development of novel therapeutics to treat human diseases associated with inflammation, pain, and pruritus. Cara's most advanced compound, CR845, aims to treat acute pain and pruritus. This patented compound has analgesic, anti-inflammatory, and antipruritic properties that can be used for multiple therapeutic applications. Additionally, Cara's objective is to use its proprietary drug-screening technology to develop a future pipeline of first-in-class molecules with analgesic and anti-inflammatory features.

Cara Therapeutics's Economic Impact: An Analysis

Market Capitalization: With restricted market capitalization, the company is positioned below industry averages. This reflects a smaller scale relative to peers.

Revenue Challenges: Cara Therapeutics's revenue growth over 3 months faced difficulties. As of 30 September, 2023, the company experienced a decline of approximately -55.0%. This indicates a decrease in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Health Care sector.

Net Margin: Cara Therapeutics's financial strength is reflected in its exceptional net margin, which exceeds industry averages. With a remarkable net margin of -576.08%, the company showcases strong profitability and effective cost management.

Return on Equity (ROE): Cara Therapeutics's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of -28.81%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): The company's ROA is below industry benchmarks, signaling potential difficulties in efficiently utilizing assets. With an ROA of -22.45%, the company may need to address challenges in generating satisfactory returns from its assets.

Debt Management: Cara Therapeutics's debt-to-equity ratio is below the industry average. With a ratio of 0.09, the company relies less on debt financing, maintaining a healthier balance between debt and equity, which can be viewed positively by investors.

Understanding the Relevance of Analyst Ratings

Analyst ratings serve as essential indicators of stock performance, provided by experts in banking and financial systems. These specialists diligently analyze company financial statements, participate in conference calls, and engage with insiders to generate quarterly ratings for individual stocks.

Some analysts publish their predictions for metrics such as growth estimates, earnings, and revenue to provide additional guidance with their ratings. When using analyst ratings, it is important to keep in mind that stock and sector analysts are also human and are only offering their opinions to investors.

This article was generated by Benzinga's automated content engine and reviewed by an editor.