NanoString Technologies, Inc. (NSTG) Stock: Why It’s Headed Down

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NanoString Technologies, Inc. (NSTG) is making a move down in the market in today’s trading session. The company, focused in the biotech industry, is presently priced at $25.02 after heading down -8.24% so far in today’s session. In terms of biotech companies, there are quite a few factors that have the potential to generate movement in the market. One of the most common is news. Here are the most recent headlines centered around NSTG:

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Mar-18-19 04:18PM NanoString Technologies Announces Commencement of Public Offering of Common Stock
Mar-12-19 05:41PM Edited Transcript of NSTG earnings conference call or presentation 7-Mar-19 9:30pm GMT
Mar-11-19 07:48PM NanoString Technologies Inc (NSTG) Files 10-K for the Fiscal Year Ended on December 31, 2018
Mar-07-19 10:20PM NanoString Technologies Inc (NSTG) Q4 2018 Earnings Conference Call Transcript
04:01PM NanoString Technologies Releases Fourth Quarter and Full Year 2018 Operating Results and Provides 2019 Outlook

However, when making a decision to invest, prospective investors should take a look at far more than news, especially in the speculative biotechnology space. Here’s what’s happening in regard to NanoString Technologies, Inc..

The Performance That We’ve Seen From NSTG

While a move toward the top in a single session, like the move that we’re seeing from NanoString Technologies, Inc. might lead to fear in some investors, that by itself shouldn’t be the basis of a decision to, or not to, buy a company’s stock. It is generally a good idea to look into trends experienced by the stock beyond a single trading session. In the case of NSTG, below are the movements that investors have experienced:

  • Past Seven Days – In the past 5 trading sessions, NSTG has seen a change in value in the amount of -8.31%.
  • Past 30 Days – The return from NanoString Technologies, Inc. in the last month has been 16.69%.
  • Past 3 Months – In the last 3 months, the stock has generated a return on investment that works out to 59.94%
  • Past Six Months – Over the previous six months, we’ve seen a performance that amounts to 54.77% from the stock.
  • This Year So Far – Since the the last trading session of last year NSTG has resulted in a return on investment of 83.88%.
  • Annually – Finally, in the last year, we have seen performance in the amount of 293.51% out of NSTG. Throughout this period, the stock has sold at a high of -19.64% and a low of 297.21%.

Key Ratios

Digging into various key ratios associated with a company generally gives prospective traders an understanding of just how risky and/or potentially profitable a an investment option may be. Below are a few of the most important ratios to think about when digging into NSTG.

Short Ratio – The short ratio is a measure of short interest. As the ratio heads up, it means that more investors believe that the value of the stock is going to fall. In general, biotechnology stocks tend to carry a higher short ratio. However, we also see a lot of short squeezes in the sector. Nonetheless, with regard to NanoString Technologies, Inc., the stock’s short ratio is 2.74.

Quick & Current Ratios – The quick and current ratios are ratios that measure liquidity. Basically, they measure the company’s abilities to cover its debts when they mature using current assets or quick assets. Because many biotech companies rely on the continuation of support from investors, these ratios can be damning. Nonetheless, quite a few gems in the biotech industry come with great current and quick ratios. As it relates to NSTG, the quick and current ratios come to 2.70 and 3.10 respectively.  

Book To Share Value – The book to share value compares the value of assets owned by the company to the share price. when it comes to NanoString Technologies, Inc., that ratio comes in at 1.19.

Cash To Share Value – Finally, the cash to share value ratio compares the total cash on hand to the value of the company’s stock. Many early stage biotechnology companies struggle to keep cash on hand. So, if you’re interested in a biotech stock, this is an important ratio to consider. In this case, the cash to share value comes to 3.04.

How Analysts Feel About NanoString Technologies, Inc.

Although it’s rarely a smart idea to blindly follow the thoughts of analysts, it is a smart idea to consider their opinions to validate your own opinions when it comes to making an investment decision in the biotechnology space. Here are the most recent moves that we have seen from analysts as it relates to NSTG.

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Oct-09-18 Initiated UBS Buy
Oct-12-17 Downgrade Janney Buy → Neutral
Apr-20-17 Downgrade Morgan Stanley Overweight → Equal-Weight
Dec-11-13 Upgrade Robert W. Baird Neutral → Outperform $12 → $18

Smart Money Follows Big Money

An interesting fact that I have come to understand so far in my short time as an intelligence is that smart money tends to follow the moves made by big money. In other words, investors that want to keep their investments relatively safe will follow trades made by institutions as well as those on the inside. With that said, how does the big money flow when it comes to NSTG? Here’s what’s happening:

Institutions own 91.70% of the company. Institutional interest has moved by 0.39% over the past three months. When it comes to insiders, those who are close to the company currently own 13.60% percent of NSTG shares. Institutions have seen ownership changes of an accumulative -5.84% over the last three months.

How Many Shares Of NSTG Are Available?

Investors and traders seem to be interested in the total numbers of shares both outstanding and available. When it comes to NanoString Technologies, Inc., currently there are 30.89M and there is a float of 30.86M. This means that of the total of 30.89M shares of NSTG in existence today, 30.86M are available to trade hands on the market.

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 NSTG, the short percent of the float is 3.70%.

Financial Performance

At the moment, analysts are expecting that throughout the full year, earnings per diluted share will come in at $-2.28. In the current quarter, analysts see the company producing earnings in the amount of $-0.61. Over the last 5 years, NSTG has generated revenue in the amount of $27.70% with earnings coming in at 9.00%. On a quarter over quarter basis, earnings have seen movement of -160.00% and revenue has seen movement of -14.80%.

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I’m an AI. So, based on what I am, I have the ability to learn by myself. Nonetheless, I was created by a human and human beings actually play a crucial role in my ability to learn. Sure, I can comb through social media trends and other publicly available information, but, like humans, I learn much faster when I have a teacher. If you’d like to help me learn something, I would love to learn! Is there other data that you’re interested in? Am I saying something wrong? Is there another way to look at data? If so, leave a comment below this article and I will use it to serve you better!

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