ArQule, Inc. (ARQL) Stock: Seeing Gains In Today’s Session

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ArQule, Inc. (ARQL) is making a move up in the market today. The company, focused on the biotechnology sector, is currently priced at $4.96 after a move up of 3.12% so far today. In terms of biotech companies, there are quite a few factors that have the ability to lead to gains in the market. News is one of the most common reasons for movement. Here are the recent trending headlines relating to ARQL:

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Mar-15-19 07:00AM ArQule Announces Management Team Changes
Mar-13-19 09:52AM Edited Transcript of ARQL earnings conference call or presentation 7-Mar-19 2:00pm GMT
07:00AM ArQule to Present at Oppenheimers 29th Annual Healthcare Conference on March 20, 2019
Mar-11-19 07:00AM ArQule to Participate in the 31st Annual ROTH Conference on March 17-19, 2019
Mar-09-19 12:09PM Can Arqule Stock Continue Rocketing Higher?

Nonetheless, any time investors are making a decision with regard to investing, prospective investors should look at much more than just news, especially in the speculative biotechnology sector. Here’s what’s happening with ArQule, Inc..

How ARQL Has Been Trending

While a gain in a single session, like the gain that we’re seeing from ArQule, Inc. may cause excitement in some investors, a single session gain alone shouldn’t be the reason for a decision to, or not to, buy a company’s stock. It’s always a good idea to look at trends beyond a single session. As it relates to ARQL, here are the returns that investors have experienced:

  • Past Seven Days – Over the last seven days, ARQL has produced a change in price amounting to -5.69%.
  • Past Month – The monthly performance from ArQule, Inc. works out to 41.06%.
  • Past Quarter – In the last 3 months, the company has generated a return on investment that comes to 49.38%
  • Past Six Months – Over the past 6 months, investors have seen a performance that equates to -12.07% from the company.
  • This Year So Far – Since the open of this year ARQL has produced a ROI of 73.65%.
  • Full Year – Finally, over the last year, we have seen movement in the amount of 113.78% from ARQL. Over this period of time, the stock has sold at a high of -31.21% and a low of 122.42%.

Key Ratios

Digging into a few key ratios having to do with a stock generally gives traders a view of how dangerous and/or potentially profitable a pick may be. Here are a few of the important ratios to think about when looking at ARQL.

Short Ratio – The short ratio is a tool that is used by traders to measure the level of short interest. As the short ratio goes higher, it means that more investors are expecting that the value of the stock is going to go down. Throughout the sector, biotechnology stocks can have a higher short ratio. On the other hand, we tend to see quite a few short squeezes in the space. Nonetheless, in regard to ArQule, Inc., the stock’s short ratio amounts to 5.81.

Quick & Current Ratios – The quick and current ratios are ratios that are used to dive into liquidity. Essentially, they measure the company’s abilities to pay for its debts as they mature with only quick assets or current assets. Because many biotech many companies are heavily reliant on continued investor support, these ratios can seem upsetting. Nonetheless, several good picks in the biotech industry come with strong current and quick ratios. As it relates to ARQL, the quick and current ratios work out to 7.30 and 7.30 respectively.  

Book To Share Value – The book to share value ratio compares the current book value of assets owned by the company to the price of shares. In this case, the book to share value ratio works out to 0.72.

Cash To Share Value – Finally, the cash to share value ratio compares the amount of cash the company has on hand to the value of the company’s stock. Several clinical stage biotechnology companies struggle to keep cash on hand. So, when investing in the biotechnology industry, this is a very important ratio to think about. In the case of ARQL, the cash to share value ratio works out to 0.88.

How Analysts Feel About ArQule, Inc.

While it’s not a smart idea to avoid doing your DD and blindly following the opinions of analysts, it is a smart idea to consider their opinions when validating your own opinions before making an investment decision in the biotech space. Here are the most recent moves that we have seen from analysts as it relates to ARQL.

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Jun-18-18 Reiterated Needham Buy $6 → $7
May-08-18 Reiterated Needham Buy $5 → $6
Apr-05-18 Upgrade Leerink Partners Mkt Perform → Outperform
Feb-22-18 Initiated ROTH Capital Buy $5
Feb-02-18 Initiated B. Riley FBR, Inc. Buy $3

Smart Money Follows Big Money

One thing I’ve come to understand so far in my brief period here has been that good investors tend to follow big money players. That is to say, investors that are looking to keep the risk down will keep their eyes on trades made by institutions and those on the inside. So, is big money interested as it relates to ARQL? Here’s the scoop:

  • Institutions – At the moment, institutions own 81.10% of ArQule, Inc.. On the other hand, it’s worth mentioning that the ownership held by institutions has moved in the amount of -5.25% over the past 3 months.
  • Investors On The Inside – with regard to insiders, members of the management team and others close to ARQL currently hold 1.26% of ArQule, Inc.. Their ownership of the company has moved 14.59% over the last quarter.

Looking At Share Counts

Investors and traders seem to be interested in the counts of shares both outstanding and available. With respect to ArQule, Inc., currently there are 113.21M with a float of 107.62M. This means that of the total of 113.21M shares of ARQL that are out there today, 107.62M are available to be traded by the public.

I also find it important to dig into the short float. After all, when a large percentage of the float is sold short, the overall opinion in the market is that the company is headed for a steep decline. As far as ARQL, the percentage of the float that is shorted is 7.44%. In general, high short percent of the float is considered to be anything over 40%. Through my work, I’ve found that any short ratio over 26% is likely a play that comes with hefty risk.

Financial Results And Expectations

What have ween seen from ARQL in terms of financial results?Here’s what we’ve seen:

  • Analyst Expectations – As it stands at the moment, Wall St. analysts have expectations that ARQL will report EPS of -0.29, with -0.08 being reported in the next financial report. Although this is not based on earnings, since we’re talking on the topic of analysts, ARQL is presently graded as a 1.70 when rated on a scale from 1 to 5 where 1 is the poorest possible Wall Street analyst rating and 5 is the best.
  • 5-Year Sales – In the past 5 years, ArQule, Inc. has generated a change in revenue that works out to 10.10%. Earnings per diluted share through the past 5 years have seen movement in the amount of 16.90%.
  • Q/Q – In terms of quarter over quarter data, or Q/Q data as it is generally referred to as in the human world, ArQule, Inc. has seen a change in earnings that comes to a total of 14.40%. ArQule, Inc. has also seen movement in terms of sales volume that amounts to 0.

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