Avid Bioservices, Inc. (CDMO) Stock: A Strong Pick In The Biotech Sector?


Avid Bioservices, Inc. (CDMO) is falling in the market today. The company, focused in the biotech space, is currently trading at $4.10 after tumbling -7.03% so far today. As it relates to biotech companies, there are a number of factors that have the ability to lead to price movement in the market. One of the most common is news. Here are the most recent stories relating to CDMO:

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Mar-12-19 12:42PM Why Avid Bioservices Is Soaring Today
Mar-11-19 07:43PM Avid Bioservices, Inc. (CDMO) Q3 2019 Earnings Conference Call Transcript
05:20PM Avid Bioservices (CDMO) Reports Q3 Loss, Tops Revenue Estimates
04:17PM Avid Bioservices: Fiscal 3Q Earnings Snapshot
04:05PM Avid Bioservices Reports Financial Results for Third Quarter Fiscal 2019 and Recent Developments

Nonetheless, when making an investing decision, investors should look into much more than just news, especially in the generally speculative biotech space. Here’s what’s happening in regard to Avid Bioservices, Inc..

How CDMO Has Been Trending

Although a single session decline, like the move that we’re seeing from Avid Bioservices, Inc. may lead to fear in some investors, a single session decline by itself shouldn’t be the basis of a decision to, or not to, buy a company’s stock. It is generally smart to look at trends just a single trading session. As it relates to CDMO, below are the trends that we have seen:

  • Past 5 Sessions – Throughout the past week, CDMO has produced a change in value that amounts to 10.80%.
  • Monthly – The monthly performance from Avid Bioservices, Inc. has been 23.88%.
  • Past Quarter – In the past 3 months, the stock has generated a return on investment that comes to -14.37%
  • Past Six Months – Over the past six months, we have seen a performance that works out to -38.06% from the stock.
  • YTD – Since the open of this year CDMO has produced a return on investment of 7.56%.
  • Full Year – Finally, over the past full year, investors have seen a change that comes to 89.27% from CDMO. Throughout this period, the stock has sold at a high of -51.42% and a low of 81.42%.

Key Ratios

Digging into various key ratios having to do with a company can provide traders a look of how dangerous and/or potentially profitable a stock pick might be. Below are some of the key ratios to consider when digging into CDMO.

Short Ratio – The short ratio is a measure of short interest. As the ratio climbs, it means that more investors have a belief that the value of the stock is headed for declines. In general, biotech stocks tend to carry a higher short ratio. However, we tend to see quite a few short squeezes in the sector. Nonetheless, with regard to Avid Bioservices, Inc., the stock’s short ratio comes to 7.30.

Quick & Current Ratios – The quick and current ratios are tools that are used to measure liquidity. Essentially, they measure the company’s abilities to cover its debts as they mature based on quick assets or current assets. Because many biotech several companies rely heavily on the continuation of support from investors, the quick and current ratios can look upsetting. Nonetheless, several good picks in the biotechnology space do have positive quick and current ratios. As far as CDMO, the quick and current ratios add up to 1.80 and 2.30 respectively.  

Book To Share Value – The book to share value compares the book value of assets owned by the company to the share price. as it relates to Avid Bioservices, Inc., the book to share value ratio works out to 0.98.

Cash To Share Value – The cash to share value ratio compares the total amount of cash the company has on hand to the value of shares. Many early stage biotech companies struggle to keep cash on hand. So, if you’re interested in a stock in the biotechnology industry, this is an important ratio to consider. As it relates to CDMO, the cash to share value comes to 0.59.

How Analysts Feel About Avid Bioservices, Inc.

Although it’s not a good idea to avoid doing your due diligence and blindly following the opinions of analysts, it is a smart idea to use their opinions in order to validate your own thoughts before making an investment decision in the biotech space. Below are|Here are} the most recent moves that we’ve seen from analysts when it comes to CDMO.

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Investors Tend To Follow The Big Money

Humans that are into investing seem to be infatuated with the term “Smart money follows big money.” It makes sense. Big money became big money by making smart decisions in the market. So, by following the moves of big money institutions and insiders, we can get a glimpse of what market pros think about a stock. When it comes to big money interest in CDMO, here’s what we’re seeing:

Institutions own 49.50% of the company. Institutional interest has moved by 27.33% over the past three months. When it comes to insiders, those who are close to the company currently own 11.62% percent of CDMO shares. Institutions have seen ownership changes of an accumulative 0 over the last three months.

What’s Going On With Share Counts?

Another point of interest that seems to be important to investors is the amount of shares of a company that are outstanding and currently available. At the moment, there are 55.77M shares of Avid Bioservices, Inc. outstanding. Shares outstanding refers to the total amount of shares of a stock that exist. As far as the float goes, or the amount of shares that are actually available on the retail market, CDMO has a float of 49.55M.

Since we’re on the topic of share counts, there’s another relevant piece of data that you might find interesting. That would be the short percentage of the float. Those who sell shares short believe that the value of the stock is going to decline. When there’s a high short percentage of the float, generally considered to be anything over 40%, it’s a giveaway that the stock is likely headed for sharp declines ahead. Nonetheless, through my research, I’ve come to the conclusion that any short percent of the float over 26% is a risky bet. When it comes to CDMO, the short percent of the float is 4.20%.

Financial Performance

At the moment, analysts are expecting that throughout the full year, earnings per diluted share will come in at $0.08. In the current quarter, analysts see the company producing earnings in the amount of $-0.07. Over the last 5 years, CDMO has generated revenue in the amount of $19.90% with earnings coming in at 20.90%. On a quarter over quarter basis, earnings have seen movement of 70.00% and revenue has seen movement of -20.30%.

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