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Capricor Therapeutics: Is the Slide a Tactical Chance?

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Written by Matt Monaco
Updated 7/11/2025, 9:19 am ET | 6 min

In this article Last trade Aug, 04 7:39 PM

  • CAPR-3.04%
    CAPR - NASDAQCapricor Therapeutics Inc.
    $7.66-0.24 (-3.04%)
    Volume:  1.38M
    Float:  40.91M
    $7.20Day Low/High$7.99

Capricor Therapeutics Inc. shares have been trading down by -42.72 percent amid significant market sentiment shifts.

  • Investigations were prompted by investor claims tied to FDA feedback concerning their drug, deramiocel’s potential for Duchenne muscular dystrophy cardiomyopathy treatment.

  • An advisory committee meeting called by the FDA has coincided with a significant slump in stock value, stirring deeply rooted investor concerns.

Candlestick Chart

Live Update At 09:18:31 EST: On Friday, July 11, 2025 Capricor Therapeutics Inc. stock [NASDAQ: CAPR] is trending down by -42.72%! Discover the key drivers behind this movement as well as our expert analysis in the detailed breakdown below.

Analyzing Capricor’s Financial Health and Market Trends

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The volatile journey of Capricor Therapeutics (CAPR) in the financial market has been marked by significant fluctuations. Observing their earnings report alongside market trends, the company’s fiscal landscape has been risky. Their revenue has been escalating, but with an enterprise value pegged over $377M, concerns loom over the reported loss margins. Market observers note gross margins at a perfect 100%, yet net profits diverge deeply into the red, suggesting operational challenges.

Capricor’s recent income statements show a grim reality. Despite a sizable revenue increase, reported operating expenses have outstripped income significantly. In fact, their net income for continuing operations plunged past $24M into the red. Stockholders’ equity, sitting at approximately $127M, reveals a protective barrier. Nevertheless, distressed investors are wary of hemorrhaging assets and halting growth.

Additionally, Capricor’s cash flow statements reflect a cautious scenario. While they have worked toward maintaining a healthy change in working capital — reminding one of life jackets strapped onto sinking ships — piles of investment outpacing income blur the promise of free cash flow. Navigating these rocky financial voyages requires skillful maneuvering of their $287 million in cash, balancing all beneath an annualized air of careful optimism.

News of turbulent FDA reviews only amplifies these concerns. Expectedly, their share price slumped post negative FDA interactions — a reaction not foreign to companies in sensitive regulatory phases. Unfortunately, this combination of corporate and regulatory turbulence seems to suggest a continuation of investor caution.

The Stock Slide and Expected Aftershocks

The grim revelations of Capricor’s unwelcome trends prompt many to question — where will the next twist on this financial ride take investors? Pomerantz Law Firm’s investigations relating to alleged securities fraud and inner-management dissonance have played significant roles in the market’s chilly reception.

Persistent legal probes have been caused in part by the FDA’s decision to convene an advisory committee to review Capricor’s drug candidate, deramiocel, and its viability for DMD treatment. Significant plummets in stock value paired with the release of adverse investigation reports are expected to rattle investor sentiments, potentially bracing the world for a complex financial narrative ahead.

Should Capricor manage tighter reins on both financial and legal fronts, they might overcome the market’s icy grasp. Truth be told, steering through turbulent regulatory stages demands aplomb tethered by resolve, where reactive market shifts hold sway till definitive outcomes emerge. In parallel, they must bolster creation and fiduciary practices as investors look forward to signs of fortitude — quite like searching for rainbows in the storm.

Combined, these narratives converge into a lengthy lull, but abnormal activity in the ticker serves as a reminder: Perceived unpredictability tantalizes significant swaths of eager entities. Answers to the company’s fate may lie in the dual domains of medical might and market mechanics.

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Concluding Thoughts on Market Reactions

Summarizing the unfolding drama at Capricor requires an acknowledgment of multi-layered concerns. The imbibing of fiscal limitations presented through red margins and pounding cash dynamics, coupled with steely probing from investigators, enunciates a firm call for clarity. As millionaire penny stock trader and teacher Tim Sykes says, “Be patient, don’t force trades, and let the perfect setups come to you.” Wary traders, turning the compass needle, wait as Capricor’s strategic repositioning may determine their journey toward plausible solvency. As current weather-like uncertainties evolve, the potential for change might be drawn from either spectral resolutions at fiscal corners or decisive evaluations cast upon investigative establishments.

Through the riddle of revelation and restoration, Capricor’s timeline awaits its unveiling course — a plot yet scribed by chapters anointed by fiscal resolve and regulatory favors alike. Only application writers in no interruption thrust will witness whether this unfolds into auditorials akin to phoenix-like rebirths or strait-jacketed finances strapped within guarded mergers.

This is stock news, not investment advice. Timothy Sykes News delivers real-time stock market news focused on key catalysts driving short-term price movements. Our content is tailored for active traders and investors seeking to capitalize on rapid price fluctuations, particularly in volatile sectors like penny stocks. Readers come to us for detailed coverage on earnings reports, mergers, FDA approvals, new contracts, and unusual trading volumes that can trigger significant short-term price action. Some users utilize our news to explain sudden stock movements, while others rely on it for diligent research into potential investment opportunities.

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Matt Monaco

Mentor and Trainer at StocksToTrade.com, Lead Mentor at Small Cap Rockets and To The Moon Report
He is a diligent trader and teacher in his To The Moon Report blogs and Small Cap Rockets strategy webinars. He shows up every day, and expects his students to as well. Matt is fond of trading sketchy, volatile OTC stocks with profit potential. His favorite patterns are panic dip buys and breakouts.
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* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

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Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”

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