ContraFect Corporation (CFRX) Stock: A Good Pick In The Biotech Sector?

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ContraFect Corporation (CFRX) is trending down in the market today. The stock, one that is focused in the biotechnology space, is currently trading at $0.36 after tumbling -5.19% so far in today’s session. When it comes to biotech companies, there are a number of factors that have the ability to lead to movement in the market. News tends to be one of the biggest reasons for the movement. Here are the recent stories associated with CFRX:

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Mar-14-19 08:01AM ContraFect: 4Q Earnings Snapshot
07:00AM ContraFect Reports Fourth Quarter and Full Year 2018 Financial Results and Provides Business Update
Mar-13-19 07:00AM ContraFect to Present at the Oppenheimer 29th Annual Healthcare Conference
Mar-04-19 07:00AM ContraFect Announces $6.94 Million in Funding from CARB-X to Support Development of Amurin Platform Against All Gram-negative ESKAPE Pathogens
Feb-25-19 07:00AM Glancy Prongay & Murray LLP Continues Investigation on Behalf of ContraFect Corporation Investors (CFRX)

However, when making a decision with regard to investing, investors should take a look at far more than just news, especially in the generally speculative biotechnology space. Here’s what’s happing when it comes to ContraFect Corporation.

The Performance That CFRX Investors Have Experienced

Although a move toward the top in a single session, like the fall that we’re seeing from ContraFect Corporation may cause fear in some investors, a single session decline alone shouldn’t be the reason for a decision to, or not to, invest in a company. It is always smart to look at trends experienced by the stock just a single trading day. When it comes to CFRX, here are the movements that investors have seen:

  • Weekly – Throughout the past five trading sessions, CFRX has generated a change in price that amounts to -12.17%.
  • Monthly – The monthly performance from ContraFect Corporation has been -18.18%.
  • Quarterly – Over the past 3 months, the company has produced a return of -82.69%
  • Past 6 Months – Over the past 6 months, we have seen a change that works out to -77.36% from the company.
  • Year To Date – Since the the first trading session of this year CFRX has generated a return on investment of -76.47%.
  • Annually – Lastly, in the past year, we have seen a change of -81.05% from CFRX. In this period of time, the stock has traded at a high of -87.70% and a low of 1.41%.

Rations That You Should Consider

Digging into a few ratios associated with a company can provide prospective investors a view of just how risky and/or rewarding a pick may be. Below are some of the key ratios to think about when looking at CFRX.

Short Ratio – The short ratio is a measure of short interest. The higher this ratio, the more investors believe that the value of the stock is going to fall. Across the sector, biotech stocks can have a higher short ratio. On the other hand, we also see a lot of short squeezes in the industry. Nonetheless, in relation to ContraFect Corporation, it’s short ratio clocks in at 0.50.

Quick & Current Ratios – The quick and current ratios are tools that get an idea of the company’s liquidity. Essentially, they measure If a company is able to cover its debts when they come due based on current assets or quick assets. In the biotech space, many companies rely on the continuation of investor support, these ratios can seem damning. However, some gems in the biotech industry do have great quick and current ratios. As it relates to CFRX, the quick and current ratios add up to 5.40 and 5.40 respectively.  

Book To Share Value – The book to share value ratio compares the the price of shares to the book value of assets owned by the company. as it relates to ContraFect Corporation, the book to share value ratio equates to 0.07.

Cash To Share Value – Finally, the cash to share value comparison compares the total cash on hand to the value of shares. Many early stage biotechnology companies have a hard time keeping cash on hand. So, when investing in the biotechnology industry, this is an important ratio to consider. In this case, the cash to share value is 0.35.

How Analysts Feel About ContraFect Corporation

Although it’s rarely a smart idea to unknowingly follow the thoughts of analysts, it is a smart idea to consider their analysis to validate your own due diligence when it comes to making investment decisions in the biotechnology space. Here are the recent moves that we’ve seen from analysts when it comes to CFRX.

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Jul-28-16 Initiated Piper Jaffray Overweight
Jul-22-16 Downgrade Maxim Group Buy → Hold
Mar-15-16 Reiterated Maxim Group Buy $8 → $7
Dec-31-15 Reiterated Maxim Group Buy $16 → $9

What Institutions And Insiders Think Of ContraFect Corporation

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 CFRX, here’s what we’re seeing:

  • Institutional Investors – As it stands now, institutions own 55.80% of the company. On the other hand, it is important to consider that the ownership held by institutions has seen a move of -2.94% throughout the last 3 months.
  • Insider Holdings – As far as insiders go, those close to the company currently own 10.00% of the company. Their ownership of the company has moved -12.25% over the past 3 months.

What’s Going On With Share Counts?

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 85.95M shares of ContraFect 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, CFRX has a float of 73.35M.

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 CFRX, the short percent of the float is 0.59%.

Financial Results And Expectations

What have ween seen from CFRX in terms of financial results?Here’s the data:

  • Analyst Expectations – At the moment, Wall Street analysts have expectations that the company will come up with EPS that totals up to be -0.45, with -0.10 being announced in the earnings report for the current quarter. Although this isn’t associated with earnings, because we’re talking about analysts, ContraFect Corporation is currently rated a 1.50 on a scale from 1 to 5 where 1 is the poorest possible analyst grade and 5 is the best.
  • 5-Year Sales – Over the past half decade, ContraFect Corporation has created a change in sales volume that comes to a total of 0. Earnings per diluted share in the period have generated a change of 0.
  • Q/Q – In terms of quarter over quarter earnings data, or Q/Q data as it is often represented in today’s society, the company has created a change in earnings that comes to a total of 0. CFRX has also experienced movement in regard to sales that adds up to 0.

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