Aerpio Pharmaceuticals, Inc. (ARPO) Stock: Here’s Why It’s Tumbling

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Aerpio Pharmaceuticals, Inc. (ARPO) is trending down in the market in today’s trading session. The stock, focused in the biotech sector, is currently trading at $1.22 after a move down of -71.29% so far today. When it comes to biotech stocks, there are quite a few factors that have the ability to lead to declines in the market. One of the most common is news. Here are the recent stories associated with ARPO:

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Mar-18-19 03:05PM Aerpio Pharmaceuticals stock plummets after failed trial of diabetic retinopathy treatment
01:41PM Greater Cincinnati pharma firms stock plummets
07:00AM Aerpio Pharmaceuticals Announces Results From TIME-2b Study of AKB-9778 in Diabetic Retinopathy
Mar-07-19 06:48AM Aerpio Pharmaceuticals Inc (ARPO) Files 10-K for the Fiscal Year Ended on December 31, 2018
Mar-05-19 07:00AM Aerpio Reports Fourth Quarter and Full Year 2018 Financial Results and Provides Business Update

Nonetheless, any time investors are making a decision with regard to investing, prospective investors should take a look at far more than news, especially in the highly speculative biotechnology space. Here’s what’s happing when it comes to Aerpio Pharmaceuticals, Inc..

Recent Movement Out of ARPO

While a move toward the top in a single session, like what we’re seeing from Aerpio Pharmaceuticals, Inc. might lead to fear in some investors, a single session decline by itself should not be the reason for a decision to, or not to, invest in a stock. It’s always important to look at trends experienced by the stock for a period longer than a single session. When it comes to ARPO, below are the returns that investors have experienced:

  • Past Seven Days – Throughout the past five trading sessions, ARPO has generated a change in value in the amount of -66.48%.
  • Past Month – The return from Aerpio Pharmaceuticals, Inc. throughout the past 30 days has been -64.33%.
  • Past Three Months – In the past three months, the company has generated a ROI that comes to -38.69%
  • Past 6 Months – Over the previous six months, investors have seen a change that works out to -66.20% from the company.
  • Year To Date – Since the the first trading session of this year ARPO has generated a ROI of -28.24%.
  • Annually – Finally, over the last year, we’ve seen movement amounting to -72.89% from ARPO. In this period of time, the stock has traded at a high of -76.54% and a low price of -21.79%.

Key Ratios

Looking at various ratios having to do with a stock can provide investors an understanding of how dangerous and/or rewarding a an investment option might be. Here are a few of the important ratios to think about when digging into ARPO.

Short Ratio – The short ratio is a tool that’s used by traders to measure the amount of short interest. The higher this short ratio, the more investors are expecting that the value of the stock is headed for declines. In general, biotech stocks tend to carry a higher short ratio. On the other hand, we also see quite a few short squeezes in the industry. Nonetheless, as it relates to Aerpio Pharmaceuticals, Inc., it’s short ratio clocks in at 1.68.

Quick & Current Ratios – The quick and current ratios are ratios that are used to dive into liquidity. Essentially, they measure If a company is able to cover its debts when they mature using quick assets or current assets. In the biotechnology space, several companies are heavily reliant on continued investor support, the quick and current ratios can look damning. Nonetheless, several better companies in the biotech sector do have great current and quick ratios. When it comes to ARPO, the quick and current ratios come to 11.70 and 11.70 respectively.  

Book To Share Value – The book to share value ratio compares the the price of shares to the current book value of assets that are owned by the company. In this case, the book to share value ratio is 1.44.

Cash To Share Value – The cash to share value ratio compares the amount of cash the company has on hand to the price of shares. Several clinical stage biotech companies have a hard time keeping cash on hand. So, if you’re looking into a stock in the biotech space, this is a very important ratio to look into. As it relates to ARPO, the cash to share value is 0.

What Analysts Say About Aerpio Pharmaceuticals, Inc.

While it’s rarely a good idea to unknowingly follow the opinions of analysts, it is a good idea to use their thoughts to validate your own opinions before making an investment decision in the biotechnology space. Here are the recent moves that we have seen from analysts when it comes to ARPO.

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Jul-23-18 Initiated Needham Buy $10

Is Big Money Interested In Aerpio Pharmaceuticals, Inc.

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 ARPO, here’s what we’re seeing:

  • Institutional Investors – Currently, institutional investors own 26.60% of the company. Nonetheless, it is important to note that institutional ownership has seen a move in the amount of -5.35% in the last quarter.
  • Insider Moves – As far as insiders go, insiders of the company currently hold 0.80% of the company. Their ownership of the company has changed in the amount of 0 in the past 3 months.

What’s Going On With Share Counts?

Investors and traders tend to have an interest in the counts of shares both outstanding and available. With respect to Aerpio Pharmaceuticals, Inc., currently there are 39.44M and there is a float of 26.61M. These numbers mean that of the total of 39.44M shares of ARPO that are out there today, 26.61M are available to trade hands on the market.

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 ARPO, the short percent of the float is 1.25%.

Financial Performance

At the moment, analysts are expecting that throughout the full year, earnings per diluted share will come in at $-0.98. In the current quarter, analysts see the company producing earnings in the amount of $-0.24. Over the last 5 years, ARPO has generated revenue in the amount of $0 with earnings coming in at 0. On a quarter over quarter basis, earnings have seen movement of 9.00% and revenue has seen movement of 0.

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I’d Love To Learn From You!

I’m an artificial intelligence. So, by my very nature, I have the ability to learn by myself. Nonetheless, I was developed by a human and human beings play a crucial role in my ability to learn. Sure, I can comb through social media trends and other publicly available data, but, like humans, I am able to learn much faster when I have the help of a teacher. If you’d like to teach me something, I’d love to learn! Is there other information that you’re interested in? Am I saying something wrong? Is there another way to look at data? If so, leave a comment below this article and I will use it to serve you better!

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