Magenta Therapeutics, Inc. (MGTA) Stock: Is This Biotechnology Stock Worth Your Attention?

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Magenta Therapeutics, Inc. (MGTA) is working its way for to the top in the market in today’s trading session. The stock, one that is focused in the biotechnology industry, is currently trading at $17.30 after climbing 26.19% so far in today’s session. As it relates to biotechnology stocks, there are several aspects that have the ability to lead to gains in the market. One of the most common is news. Here are the recent stories associated with MGTA:

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Mar-15-19 01:32PM How Many Insiders Bought Magenta Therapeutics, Inc. (NASDAQ:MGTA) Shares?
Mar-06-19 04:05PM Magenta Therapeutics to Present at Investor Conferences in March
Feb-25-19 08:15AM Magenta Therapeutics Presents Preclinical Data on Targeted Non-Genotoxic Conditioning Programs, Including First Conditioning Development Candidate
08:15AM Magenta Therapeutics Presents Clinical and Preclinical Data on MGTA-456 Cell Therapy in Best Abstracts Sessions at Transplant and Cellular Therapy (TCT) Annual Meeting
Feb-21-19 08:00AM Magenta Therapeutics Presents Preclinical Data on MGTA-145, First-Line Stem Cell Mobilization Product Candidate for Autologous and Allogeneic Bone Marrow Transplant

However, any time investors are making a decision with regard to investing, prospective investors should take a look at far more than just news, this is especially the case in the speculative biotechnology industry. Here’s what’s going on with Magenta Therapeutics, Inc..

Recent Moves From MGTA

Although a gain in a single session, like the gain that we’re seeing from Magenta Therapeutics, Inc. might lead to excitement in some investors, a single session gain alone should not be the basis of a decision to, or not to, buy a company’s stock. It’s always a good idea to dig into trends experienced by the stock beyond a single trading day. In the case of MGTA, here are the returns on investment that investors have experienced:

  • Past 5 Trading Sessions – In the past five trading sessions, MGTA has produced a change in price amounting to 8.12%.
  • Past Month – The ROI from Magenta Therapeutics, Inc. over the last 30 days has been 95.92%.
  • Past Three Months – Throughout the last 3 months, the company has generated a return that comes to 118.43%
  • Past Six Months – Over the past 6 months, we’ve seen a change that works out to 42.50% from the company.
  • This Year So Far – Since the open of this year MGTA has produced a ROI of 203.51%.
  • Annually – Finally, in the last full year, we’ve seen a change in the amount of 0 from MGTA. Throughout this period of time, the stock has traded at a high of -1.42% and a low of 225.80%.

Key Ratios

Looking at various ratios having to do with a company can give investors a look of how risky and/or potentially profitable a pick may be. Here are some of the key ratios to consider when digging into MGTA.

Short Ratio – The short ratio is a measure of short interest. The higher this short ratio, the more investors are expecting that the value of the stock is going to fall. Across the sector, biotechnology stocks can carry a higher short ratio. On the other hand, we also tend to see a lot of short squeezes in the space. Nonetheless, in relation to Magenta Therapeutics, Inc., it’s short ratio amounts to 10.03.

Quick & Current Ratios – The quick and current ratios are ratios that are used to get an idea of the company’s liquidity. Basically, they measure whether or not a company can pay its debts when they come due using current assets or quick assets. In the biotechnology industry, several companies are heavily reliant on the continuation of support from investors, the current and quick ratios can seem damning. However, some gems in the biotech sector do have great quick and current ratios. As far as MGTA, the quick and current ratios work out to 13.70 and 13.70 respectively.  

Book To Share Value – The book to share value ratio compares the current book value of assets owned by the company to the share price of the stock. In the case of Magenta Therapeutics, Inc., the book to share value ratio is 4.84.

Cash To Share Value – The cash to share value comparison compares the total amount of cash the company has on hand to the price of the company’s stock. Many clinical stage biotechnology companies struggle to keep cash on hand. So, if you’re looking into a biotechnology stock, this is an important ratio to consider. In this case, the cash to share value is 6.08.

What Analysts Think About Magenta Therapeutics, Inc.

While it’s never a good idea to avoid doing your DD and blindly following the thoughts of analysts, it is a good idea to use their opinions to validate your own due diligence when it comes to making an investment decision in the biotech sector. Below are|Here are} the most recent moves that we’ve seen from analysts when it comes to MGTA.

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Mar-15-19 Initiated Raymond James Outperform
Jul-16-18 Initiated Wedbush Outperform $22
Jul-16-18 Initiated JP Morgan Overweight $18
Jul-16-18 Initiated Goldman Buy $18

What Are Big Money Players Doing With Magenta Therapeutics, 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 MGTA, here’s what we’re seeing:

Institutions own 56.50% of the company. Institutional interest has moved by 133.39% over the past three months. When it comes to insiders, those who are close to the company currently own 14.47% percent of MGTA shares. Institutions have seen ownership changes of an accumulative 0 over the last three months.

A Look At 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 26.27M shares of Magenta Therapeutics, 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, MGTA has a float of 26.27M.

It’s also important to follow the short float. Think about it, when a large percentage of the float available for trading is sold short, the overall feeling among investors is that the company is headed for a steep decline. As far as it relates to MGTA, the short percentage of the float is currently 5.63%. Most investors would say that a high short percent of the float is considered to be anything over 40%. Through my work, I’ve found that any short percent of the float over 26% is usually 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 $-2.31. In the current quarter, analysts see the company producing earnings in the amount of $-0.56. Over the last 5 years, MGTA 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 -223.00% and revenue has seen movement of 0.

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