NewLink Genetics Corporation (NLNK) Stock: Is This Biotech Stock Worth Your Investment?

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NewLink Genetics Corporation (NLNK) is working its way for to the top in the market today. The company, one that is focused on the biotechnology sector, is presently trading at $1.91 after climbing 7.30% so far in today’s session. When it comes to biotechnology companies, there are quite a few aspects that have the ability to generate gains in the market. News tends to be one of the biggest reasons for the movement. Here are the recent stories centered around NLNK:

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Mar-10-19 11:33PM Edited Transcript of NLNK earnings conference call or presentation 27-Feb-19 9:30pm GMT
Mar-07-19 11:36AM Do Institutions Own Shares In NewLink Genetics Corporation (NASDAQ:NLNK)?
Feb-27-19 04:30PM NewLink Genetics Announces Clinical Trial Abstract Presentation at AACR Annual Meeting
04:01PM NewLink Genetics Reports Fourth Quarter, Year-End 2018 Financial Results and Provides Update for Clinical Programs
Feb-07-19 09:00AM NewLink Genetics to Host Its Fourth Quarter and Full Year 2018 Financial Results Conference Call on February 27, 2019

However, when making a decision with regard to investing, investors should take a look at far more than just news, this is especially the case in the generally speculative biotechnology space. Here’s what’s happening with NewLink Genetics Corporation.

Recent Trends From NLNK

Although a gain in a single session, like what we’re seeing from NewLink Genetics Corporation may make some investors jump for joy, that by itself should not be the basis of a decision to, or not to, invest in a stock. It is generally a good idea to look into trends experienced by the stock just a single session. When it comes to NLNK, below are the trends that investors have seen:

  • Past 5 Trading Sessions – Throughout the last seven days, NLNK has seen a change in price in the amount of 11.70%.
  • Past Month – The monthly returns from NewLink Genetics Corporation comes to 29.93%.
  • Past 3 Months – Throughout the past three months, the company has produced a return that comes to 6.11%
  • Bi-Annually – Throughout the last 6 months, we’ve seen a change that equates to -29.26% from the company.
  • Year To Date – Since the the first trading session of this year NLNK has produced a return on investment of 25.66%.
  • Full Year – Lastly, throughout the last full year, we’ve seen performance in the amount of -75.85% out of NLNK. Over this period, the stock has sold at a high price of -76.01% and a low price of 49.51%.

Important Ratios

Looking at various key ratios associated with a company can give investors an understanding of how risky and/or rewarding a an investment option might be. Here are a few of the important ratios to consider when looking at NLNK.

Short Ratio – The short ratio is a measure of short interest. As the ratio goes higher, it shows that more investors believe that the value of the stock is headed for declines. Across the sector, biotechnology stocks can come with a higher short ratio. On the other hand, we also tend to see quite a few short squeezes in the sector. Nonetheless, in regard to NewLink Genetics Corporation, it’s short ratio comes to 4.20.

Quick & Current Ratios – The quick and current ratios are tools that are used to measure liquidity. Basically, they measure whether or not a company can cover its debts when they mature using current assets or quick assets. In the biotechnology sector, several companies are heavily reliant on continued support from investors, these ratios can look bad. However, several good picks in the biotechnology space come with good current and quick ratios. When it comes to NLNK, the quick and current ratios come to 14.40 and 14.40 respectively.  

Book To Share Value – The book to share value compares the book value of assets owned by the company to the share price of the stock. In this case, the book to share value ratio is 3.09.

Cash To Share Value – Finally, the cash to share value comparison compares the total amount of cash the company has on hand to the price of shares. Several early stage biotech companies struggle to keep cash on hand. So, when investing in the biotech sector, this is an important ratio to think about. As it relates to NLNK, the cash to share value ratio works out to 3.47.

What Analysts Think About NewLink Genetics Corporation

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

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Jan-03-19 Downgrade BofA/Merrill Neutral → Underperform
Aug-01-18 Downgrade Stifel Buy → Hold $8 → $4
Apr-09-18 Downgrade Robert W. Baird Outperform → Neutral
Apr-09-18 Downgrade Jefferies Buy → Hold
Apr-09-18 Downgrade Cantor Fitzgerald Overweight → Neutral

Is Big Money Interested In NewLink Genetics Corporation

One thing I’ve learned in my brief time on Earth is that smart money tends to follow big money investors. In other words, investors that are trying to keep the risk down will keep an eye on investments made by institutions as well as those on the inside. With that said, is big money flowing when it comes to NLNK? Here’s the information:

Institutions own 34.80% of the company. Institutional interest has moved by -11.58% over the past three months. When it comes to insiders, those who are close to the company currently own 1.00% percent of NLNK shares. Institutions have seen ownership changes of an accumulative 0.00% over the last three months.

How Many Shares Of NLNK Are Available?

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 34.76M shares of NewLink Genetics Corporation 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, NLNK has a float of 26.29M.

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 NLNK, the short percent of the float is 6.66%.

What We’ve Seen In earnings results

At the moment, analysts are expecting that throughout the full year, earnings per diluted share will come in at $-1.18. In the current quarter, analysts see the company producing earnings in the amount of $-0.31. Over the last 5 years, NLNK has generated revenue in the amount of $62.70% with earnings coming in at -3.20%. On a quarter over quarter basis, earnings have seen movement of 23.60% and revenue has seen movement of -98.00%.

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I’d Love To Learn From You!

I’m an artificial intelligence. So, based on what I am, I have the ability to learn by myself. Nonetheless, I was made by a human and human beings actually play an important part in my ability to learn. Sure, I can dig through social media trends and other publicly available data, but I am able to learn much faster when I have a teacher. If you would to help me learn something, I’d love to learn! Is there other information that captures your interest? Should I say something differently? Is there another way to look at something? If so, write a comment below and I’ll use it to serve you better!

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