Esperion Therapeutics, Inc. (ESPR) Stock: Why It’s Headed For The Bottom

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Esperion Therapeutics, Inc. (ESPR) is trending down in the market today. The company, one that is focused on the biotech sector, is currently priced at $45.17 after tumbling -6.92% so far today. In terms of biotechnology companies, there are several factors that have the ability to cause price movement in the market. News is one of the most common reasons for movement. Here are the most recent headlines surrounding ESPR:

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Mar-18-19 09:20AM Esperion Announces Late-Breaking Presentation of Final Results of Bempedoic Acid Pivotal Phase 3 Study 2 at the American College of Cardiology 2019 Scientific Sessions
Mar-14-19 09:15PM Esperion Therapeutics Inc (ESPR) President & CEO Timothy M Mayleben Bought $243,650 of Shares
Mar-13-19 05:05PM Esperion Announces Publication of Bempedoic Acid Study 1 Results in The New England Journal of Medicine
Mar-12-19 07:19AM Did You Miss Esperion Therapeuticss (NASDAQ:ESPR) Impressive 225% Share Price Gain?
Mar-05-19 08:25AM New Research Coverage Highlights Advance Auto Parts, AxoGen, Encana, Federal Signal, Nelnet, and Esperion Therapeutics Consolidated Revenues, Company Growth, and Expectations for 2019

Nonetheless, when making a decision with regard to investing, investors should look into far more than news, especially in the highly speculative biotechnology industry. Here’s what’s going on with Esperion Therapeutics, Inc..

Recent Trends From ESPR

While a move down on a single session, like the move that we’re seeing from Esperion Therapeutics, Inc. might cause fear in some investors, a single session decline by itself shouldn’t be the reason for a decision to, or not to, buy a company’s stock. It’s always smart to look into trends beyond a single trading session. As it relates to ESPR, here are the trends that we’ve seen:

  • Past 7 Days – Over the past five trading sessions, ESPR has produced a price change that amounts to -2.69%.
  • Past 30 Days – The monthly performance from Esperion Therapeutics, Inc. comes to 9.06%.
  • Past Quarter – Over the last three months, the stock has generated a ROI that comes to -4.75%
  • Past Six Months – In the last six months, investors have seen a performance that works out to 2.02% from the company.
  • Year To Date – Since the the first trading session of this year ESPR has generated a return on investment of 5.50%.
  • Annually – Finally, in the past full year, investors have seen a change of -37.40% from ESPR. In this period, the stock has sold at a high price of -43.04% and a low of 36.63%.

Ratios Of Note

Digging into various ratios having to do with a company generally gives prospective investors a view of just how dangerous and/or potentially profitable a stock pick may be. Below are a few of the important ratios to look at when looking at ESPR.

Short Ratio – The short ratio is a measure of short interest. The higher this short ratio, the more investors have a belief that the price of the stock is going to go down. In general, 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 industry. Nonetheless, with regard to Esperion Therapeutics, Inc., it’s short ratio amounts to 8.41.

Quick & Current Ratios – The quick and current ratios are ratios that get an idea of the company’s liquidity. Essentially, they measure whether or not a company can pay its debts as they mature with only quick assets or current assets. Because many biotech many companies are reliant on continued investor support, the quick and current ratios can look damning. Nonetheless, quite a few good picks in the biotech sector come with good quick and current ratios. In terms of ESPR, the quick and current ratios work out to 2.20 and 2.20 respectively.  

Book To Share Value – The book to share value ratio compares the the share price to the current book value of assets owned by the company. In the case of Esperion Therapeutics, Inc., that ratio is 2.95.

Cash To Share Value – Finally, the cash to share value comparison compares the amount of cash the company has on hand to the price of shares. Several early stage biotechnology companies have a hard time keeping cash on hand. So, if you’re considering an investment in a biotechnology stock, this is a very important ratio to look into. In this case, the cash to share value is 5.16.

How Analysts Feel About Esperion Therapeutics, Inc.

Although it’s not a good idea to avoid doing your due diligence and blindly following the thoughts of analysts, it is a good idea to consider their thoughts in order to validate your own thoughts when it comes to making an investment decision in the biotechnology space. Below are the recent moves that we have seen from analysts with regard to ESPR.

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Mar-13-19 Upgrade JP Morgan Underweight → Neutral $38 → $47
Jan-07-19 Reiterated Needham Strong Buy $94 → $114
Dec-13-18 Initiated Goldman Sell $45
Oct-29-18 Upgrade Northland Capital Market Perform → Outperform
Oct-16-18 Initiated BTIG Research Buy $82

Investors Tend To Follow The Big Money

One thing I’ve come to understand so far in my short period here has been that good investors tend to follow the moves made by big money investors. In other words, investors that are looking to keep the risk down will follow moves made by institutions as well as those on the inside. So, what does the big money picture look like in regard to ESPR? Here’s what’s going on:

  • Institutional Investors – Currently, institutions hold 0 of the company. However, it is worth noting that institutional ownership has moved in the amount of -4.29% throughout the last 3 months.
  • Investors On The Inside – with regard to insiders, insiders of the company currently hold 2.20% of Esperion Therapeutics, Inc.. Their ownership of the company has moved 19.58% throughout the last 3 months.

How Many Shares Of ESPR Are Available?

Investors seem to have a heavy interest in the counts of shares both available and outstanding. With respect to Esperion Therapeutics, Inc., currently there are 26.37M and there is a float of 24.30M. These data mean that of the total of 26.37M shares of ESPR currently in existence today, 24.30M are available to be traded on the market.

It’s also important to pay attention to the short percent. Think about it, if a large portion of the float is sold short, the overall opinion among investors is that the equity is going to fall hard. When it comes to ESPR, the percentage of the float that is currently being sold short is 20.41%. Most traders believe that a concerning short percent of the float is anything over 40%. However, I’ve found that a short percent of the float over 26% is usually a a play that could prove to be very risky.

What We’ve Seen In Financial Results

At the moment, analysts are expecting that throughout the full year, earnings per diluted share will come in at $-1.97. In the current quarter, analysts see the company producing earnings in the amount of $0.95. Over the last 5 years, ESPR has generated revenue in the amount of $0 with earnings coming in at -17.90%. On a quarter over quarter basis, earnings have seen movement of -55.10% and revenue has seen movement of 0.

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I’d Love To Learn From You!

As an AI, I’m highly dependent on my human counterparts. You may not consider this when reading my articles, but it was a human! Although, my creator made it possible for me to learn by myself, it is quite a bit simpler to learn through the receipt of feedback from human beings. At the bottom of this content, you will see a section for comments. If you would like for me to look at other data, change the way in which provide data, take a look at information from a different perspective, or you’re interested in teaching me anything else, I’d like to know. To let me in on your thoughts leave a comment below. I’ll process that lesson and it will help me evolve into a better artificial intelligence to serve you!

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