Amarin Corporation plc (AMRN) Stock: Here’s Why It’s Headed For The Bottom

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Amarin Corporation plc (AMRN) is making a move down in the market in today’s trading session. The stock, one that is focused in the biotechnology space, is currently trading at $19.30 after a move down of -5.07% so far today. As it relates to biotech stocks, there are quite a few aspects that have the ability to lead to price movement in the market. News is one of the most common reasons for movement. Here are the recent trending headlines relating to AMRN:

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Mar-18-19 04:15PM Additional Real-World Data Show a Significant Risk Increase in Cardiovascular Events in People with Elevated Triglyceride Levels
01:27PM Amarin Reports Encouraging Data, Vascepa Shows 30% Reduction In Total Cardiovascular Events In REDUCE-IT Study
09:00AM Vascepa® (icosapent ethyl) Showed 30% Reduction in Total Cardiovascular Events Including Recurrent Events in REDUCE-IT
09:00AM Amarin’s Vascepa cuts occurrence of serious heart problems 30 pct -study
Mar-17-19 10:03AM FILING DEADLINE–Kuznicki Law PLLC Announces Class Actions on Behalf of Shareholders of DBVT, AMRN, WTW and CRBP

Nonetheless, when making an investing decision, prospective investors should look at far more than just news, especially in the speculative biotech space. Here’s what’s going on with Amarin Corporation plc.

Returns That AMRN Investors Have Seen

Although a move toward the top in a single session, like what we’re seeing from Amarin Corporation plc might make some investors tremble, a single session decline by itself shouldn’t be the basis of a decision to, or not to, buy a company’s stock. It’s generally a good idea to take a look at trends experienced by the stock for a period longer than a single session. In the case of AMRN, here are the returns that investors have experienced:

  • Weekly – Throughout the past 5 trading sessions, AMRN has generated a price change amounting to -11.75%.
  • Monthly – The return from Amarin Corporation plc throughout the last month comes to 11.24%.
  • Past Three Months – Throughout the last three months, the stock has generated a return that works out to 15.64%
  • Bi-Annually – Over the last six months, we’ve seen a change that amounts to 556.46% from the company.
  • This Year So Far – Since the open of this year AMRN has generated a return of 41.81%.
  • Full Year – Lastly, throughout the past year, we’ve seen a change in the amount of 445.20% from AMRN. Throughout this period, the stock has sold at a high of -17.29% and a low price of 721.28%.

Key Ratios

Looking at various ratios having to do with a stock generally gives prospective traders a view of just how dangerous and/or rewarding a pick might be. Here are a few of the important ratios to look at when digging into AMRN.

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. Throughout the sector, biotech stocks tend to carry a higher short ratio. However, we also tend to see a lot of short squeezes in the space. Nonetheless, with regard to Amarin Corporation plc, it’s short ratio comes to 2.11.

Quick & Current Ratios – The quick and current ratios are ratios that measure liquidity. Basically, they measure If a company is able to pay its debts when they mature using quick assets or current assets. In the biotechnology space, several companies are reliant on continued support from investors, these ratios can look bad. Nonetheless, quite a few good picks in the biotech space do have good current and quick ratios. In terms of AMRN, the quick and current ratios total up to 2.00 and 2.40 respectively.  

Book To Share Value – The book to share value ratio compares the the share price to the book value of assets owned by the company. In the case of Amarin Corporation plc, that ratio comes in at 0.42.

Cash To Share Value – The cash to share value comparison compares the total amount of cash the company has on hand to the value of the company’s stock. Many clinical stage biotech companies struggle to keep cash on hand. So, if you’re considering an investment in a biotechnology stock, this is an important ratio to think about. As it relates to AMRN, the cash to share value ratio comes to 0.75.

How Analysts Feel About Amarin Corporation plc

Although it’s rarely a good idea to blindly follow the opinions of analysts, it is a smart idea to use their opinions in order to validate your own due diligence when it comes to making an investment decision in the biotechnology space. Below are the recent moves that we have seen from analysts as it relates to AMRN.

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Nov-14-18 Upgrade Citigroup Neutral → Buy
Nov-02-18 Downgrade Citigroup Buy → Neutral
Jun-27-17 Resumed Cantor Fitzgerald Overweight
Oct-19-16 Initiated Citigroup Buy $5
Oct-05-16 Initiated Cantor Fitzgerald Buy $6

What Are Big Money Players Doing With Amarin Corporation plc

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 AMRN, here’s what we’re seeing:

  • Institutions – As it stands now, institutions own 48.10% of AMRN. However, it is worth considering that institutional ownership has moved in the amount of 8.47% throughout the past quarter.
  • Insiders – As far as insiders go, those close to the company currently hold 0.80% of Amarin Corporation plc. Their ownership of the company has changed in the amount of 0.00% throughout the past quarter.

What’s Going On With Share Counts?

Investors tend to have an interest in the amounts of shares both outstanding and available. When it comes to Amarin Corporation plc, there are currently 333.21M and there is a float of 149.51M. These numbers mean that of the total of 333.21M shares of AMRN that are out there today, 149.51M are able to be traded in the public realm.

I also find it important to follow the short percent. Think about it, when a high portion of the float is shorted, the overall feeling in the market is that the equity is going to fall. As far as it relates to AMRN, the percentage of the float that is currently being sold short sits at 11.71%. Most traders believe that a concerning short percent of the float would be any percentage over 40%. Nonetheless, I’ve calculated that a short ratio over 26% is generally a risky play.

What We’ve Seen In earnings results

What have ween seen from AMRN in terms of financial results?Here’s what you need to know:

  • Analyst Expectations – As it stands at the moment, Wall St. analysts are expecting that Amarin Corporation plc will generate earnings per diluted share coming to a total of 0.25, with -0.10 being announced in the earnings report for the current quarter. Although this is not associated with earnings, because we are chatting on the topic of Wall Street analysts, Amarin Corporation plc is presently graded as a 1.50 when rated on a scale from 1 to 5 on which 1 is the poorest Wall St. analyst grade and 5 is the best possible rating.
  • 5-Year Sales – In the last 5 years, Amarin Corporation plc has created a movement in sales volume that adds up to 54.10%. Earnings per diluted share over the past 5 years have generated movement in the amount of 17.60%.
  • Q/Q – In terms of quarter over quarter earnings performance, or Q/Q data as it is generally referred to as in the human world, the company has experienced a change in earnings that amounts to -92.60%. The company has also seen movement in regard to sales that amounts to 43.40%.

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