Alliqua BioMedical, Inc. (ALQA) Stock: Why It’s Headed For The Bottom

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Alliqua BioMedical, Inc. (ALQA) is making a move down in the market today. The company, focused on the biotech sector, is currently priced at $2.76 after heading down -5.48% so far today. When it comes to biotech companies, there are a number of factors that have the potential to generate movement in the market. One of the most common is news. Here are the most recent headlines centered around ALQA:

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Jan-03-19 07:00AM Alliqua Biomedical CEO Provides Update to Shareholders
Dec-27-18 07:35AM New Research: Key Drivers of Growth for Zillow Group, Woodward, Navistar International, Multi-Color, Ferrellgas Partners, and Alliqua BioMedical Factors of Influence, Major Initiatives and Sustained Production
Dec-14-18 10:25AM What to Watch as Healthcare Stocks Continue to Outperform the Market
Nov-30-18 03:28PM Trade The Market, Not Your Expectations
Nov-29-18 10:10AM Healthcare Stocks Following New Market Trends: Premier Health Group (PHGRF) (PHGI), Alliqua BioMedical, Tonix Pharma, & Adial Pharma

However, any time investors are making a decision to invest, prospective investors should look into much more than just news, especially in the highly speculative biotech industry. Here’s what’s happening with Alliqua BioMedical, Inc..

Returns That ALQA Investors Have Seen

While a move toward the top in a single session, like the fall that we’re seeing from Alliqua BioMedical, Inc. might cause fear in some investors, that alone shouldn’t be the basis of a decision to, or not to, invest in a stock. It’s always important to look at trends beyond a single session. When it comes to ALQA, here are the trends that investors have experienced:

  • Past Seven Days – In the past week, ALQA has generated a price change in the amount of -21.59%.
  • Monthly – The return from Alliqua BioMedical, Inc. throughout the past 30 days works out to 24.32%.
  • Quarterly – Over the last quarter, the company has generated a return that works out to 19.22%
  • Bi-Annually – Throughout the previous six months, we’ve seen a change of 8.24% from the company.
  • This Year So Far – Since the the first trading session of this year ALQA has produced a ROI of 47.59%.
  • Full Year – Finally, over the past year, investors have seen a change in the amount of 43.75% from ALQA. In this period, the stock has traded at a high of -47.33% and a low of 78.06%.

Ratios Worth Paying Attention To

Digging into a few ratios having to do with a company can give prospective traders a look of how dangerous and/or rewarding a stock pick might be. Below are a few of the most important ratios to consider when looking at ALQA.

Short Ratio – The short ratio is a measure of short interest. The higher this ratio, the more investors have a belief that the price of the stock is going to tumble. Throughout the sector, biotech stocks tend to have a higher short ratio. On the other hand, we also see quite a few short squeezes in the industry. Nonetheless, in relation to Alliqua BioMedical, Inc., the stock’s short ratio comes to 0.85.

Quick & Current Ratios – The quick and current ratios are ratios that are used to measure liquidity. Basically, they measure If a company is able to pay its debts when they mature using current assets or quick assets. Because many biotech companies rely on the continuation of investor support, the current and quick ratios can look bad. Nonetheless, several gems in the biotech space come with positive current and quick ratios. When it comes to ALQA, the quick and current ratios work out to 6.70 and 6.80 respectively.  

Book To Share Value – The book to share value compares the the share price to the book value of assets owned by the company. In this particular case, that ratio equates to 1.66.

Cash To Share Value – Finally, the cash to share value comparison compares the amount of cash the company has on hand to the value of the company’s stock. Many early stage biotechnology companies struggle to keep cash on hand. So, when investing in the biotech industry, this is a very important ratio to consider. As it relates to ALQA, the cash to share value comes to 2.41.

Analyst Opinions With Regard To Alliqua BioMedical, Inc.

Although it’s never a smart idea to avoid doing your due diligence and blindly following the thoughts of analysts, it is a smart idea to consider their analysis when validating your own thoughts when it comes to making an investment decision in the biotech sector. Below you’ll find|Here are} the most recent moves that we have seen from analysts with regard to ALQA.

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Jan-08-18 Downgrade H.C. Wainwright Buy → Neutral $4.50 → $2.80
Apr-07-17 Reiterated H.C. Wainwright Buy $2.50 → $1.50
Mar-08-17 Reiterated Chardan Capital Markets Buy $2 → $1.25
Feb-24-16 Reiterated RBC Capital Mkts Outperform $6 → $3
Feb-24-16 Reiterated Chardan Capital Markets Buy $4.25 → $2.25

Is Big Money Interested In Alliqua BioMedical, Inc.

One thing I’ve come to understand so far in my short time in existence has been that good investors tend to follow big money players. In other words, investors that want to keep their investments relatively safe will watch trades made by institutional investors as well as insiders of the company. With that said, how does the big money flow in regard to ALQA? Here’s the scoop:

  • Institutions – Currently, institutions own 13.90% of ALQA. On the other hand, it’s worth considering that institutional ownership has moved in the amount of -44.60% throughout the past quarter.
  • Investors On The Inside – as it relates to insiders, members of the management team and others close to ALQA currently hold 21.94% of Alliqua BioMedical, Inc.. Their ownership of the company has changed in the amount of 0.00% throughout the past 3 months.

What’s Going On With Share Counts?

Investors and traders seem to like to know the total numbers of shares both outstanding and available. With respect to Alliqua BioMedical, Inc., currently there are 3.69M with a float of 3.69M. These data mean that out of the total of 3.69M shares of ALQA that are out there today, 3.69M are able to be traded by the public.

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 ALQA, the short percent of the float is 6.32%.

Earnings

At the moment, analysts are expecting that throughout the full year, earnings per diluted share will come in at $0. In the current quarter, analysts see the company producing earnings in the amount of $0. Over the last 5 years, ALQA has generated revenue in the amount of $4.30% with earnings coming in at 46.20%. On a quarter over quarter basis, earnings have seen movement of -707.30% and revenue has seen movement of -28.60%.

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