ContraFect Corporation (CFRX) Stock: A Strong Pick In The Biotech Space?

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ContraFect Corporation (CFRX) is headed up in the market in today’s trading session. The stock, focused on the biotech sector, is presently trading at $0.38 after climbing 2.76% so far today. In terms of biotechnology companies, there are quite a few factors that have the ability to lead to movement in the market. News is one of the most common reasons for movement. Here are the recent headlines centered around CFRX:

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Mar-14-19 08:01AM ContraFect: 4Q Earnings Snapshot
07:00AM ContraFect Reports Fourth Quarter and Full Year 2018 Financial Results and Provides Business Update
Mar-13-19 07:00AM ContraFect to Present at the Oppenheimer 29th Annual Healthcare Conference
Mar-04-19 07:00AM ContraFect Announces $6.94 Million in Funding from CARB-X to Support Development of Amurin Platform Against All Gram-negative ESKAPE Pathogens
Feb-25-19 07:00AM Glancy Prongay & Murray LLP Continues Investigation on Behalf of ContraFect Corporation Investors (CFRX)

However, when making a decision to invest, prospective investors should take a look at far more than news, especially in the highly speculative biotechnology industry. Here’s what’s happening in regard to ContraFect Corporation.

Recent Movement Out of CFRX

While a single session gain, like the move that we’re seeing from ContraFect Corporation might make some investors excited, a single session move by itself should not be the reason for a decision to, or not to, buy a company’s stock. It is generally important to look into trends experienced by the stock further out than a single trading day. When it comes to CFRX, below are the returns on investment that investors have seen:

  • Past 5 Trading Sessions – In the past 7 days, CFRX has seen a change in price that amounts to -7.75%.
  • Past Month – The monthly returns from ContraFect Corporation has been -9.31%.
  • Past Quarter – In the last three months, the company has produced a ROI of -82.04%
  • Past 6 Months – Throughout the past 6 months, we have seen a performance that works out to -79.33% from the company.
  • Year To Date – Since the open of this year CFRX has resulted in a return on investment of -75.82%.
  • Full Year – Finally, throughout the last full year, we have seen movement of -81.41% out of CFRX. Over this period, the stock has sold at a high of -87.01% and a low price of 7.10%.

Ratios Worth Paying Attention To

Looking at various ratios having to do with a stock can give prospective investors a look of just how risky and/or potentially profitable a stock pick might be. Here are a few of the most important ratios to consider when digging into CFRX.

Short Ratio – The short ratio is a measure of short interest. As the ratio goes higher, it means that more investors are expecting that the price of the stock is going to fall. Throughout the sector, biotech stocks can come with a higher short ratio. However, we also see quite a few short squeezes in the industry. Nonetheless, as it relates to ContraFect Corporation, the stock’s short ratio comes to 0.50.

Quick & Current Ratios – The quick and current ratios are tools that are used to get an idea of the company’s liquidity. Essentially, they measure If a company is able to pay for its debts as they mature based on quick assets or current assets. Because many biotech many companies are reliant on continued investor support, the quick and current ratios can seem damning. However, several better companies in the biotechnology space do have positive current and quick ratios. As it relates to CFRX, the quick and current ratios total up to 5.40 and 5.40 respectively.  

Book To Share Value – The book to share value ratio compares the the share price to the book value of assets that are owned by the company. In this particular case, the book to share value ratio is 0.07.

Cash To Share Value – Finally, the cash to share value ratio compares the total cash on hand to the value of shares. Many early stage biotechnology companies struggle to keep cash on hand. So, if you’re looking into a biotech stock, this is a very important ratio to consider. In this case, the cash to share value works out to 0.35.

How Analysts Feel About ContraFect Corporation

Although it’s never a smart idea to unknowingly follow the thoughts of analysts, it is a good idea to consider their opinions in order to validate your own due diligence before making an investment decision in the biotechnology space. Below are|Here are} the recent moves that we’ve seen from analysts as it relates to CFRX.

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Jul-28-16 Initiated Piper Jaffray Overweight
Jul-22-16 Downgrade Maxim Group Buy → Hold
Mar-15-16 Reiterated Maxim Group Buy $8 → $7
Dec-31-15 Reiterated Maxim Group Buy $16 → $9

Investors Tend To Follow The Big Money

An interesting fact that I’ve learned so far in my short period in existence has been that smart investors tend to follow big money players. Usually, investors that are looking to play it relatively safe will watch trades made by institutions and insiders. So, what does the big money picture look like as it relates to CFRX? Here’s the scoop:

  • Institutions – As it stands now, institutional investors hold 55.80% of CFRX. However, it’s important to note that the ownership held by institutions has changed in the amount of -2.94% over the last quarter.
  • Insiders – with regard to insiders, members of the management team and others close to CFRX currently own 10.00% of the company. Insider ownership of the company has seen a move of -12.25% over the last quarter.

What You Need To Know About Share Counts

Investors and traders seem to be interested in the counts of shares both available and outstanding. When it comes to ContraFect Corporation, currently there are 85.95M with a float of 73.35M. These numbers mean that out of the total of 85.95M shares of CFRX currently in existence today, 73.35M are available to trade hands by the public.

It’s also important to pay attention to the short percent. After all, when a high percentage of the float is shorted, the overall opinion among traders is that the company is headed for a deep dive. As far as it relates to CFRX, the percentage of the float that is shorted currently sits at 0.59%. Most investors would say that a high short percent of the float is any percentage over 40%. Through my work, I have seen that a short ratio over 26% is generally a a play that could prove to be very risky.

Earnings

At the moment, analysts are expecting that throughout the full year, earnings per diluted share will come in at $-0.45. In the current quarter, analysts see the company producing earnings in the amount of $-0.10. Over the last 5 years, CFRX 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 0 and revenue has seen movement of 0.

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