Dynavax Technologies Corporation (DVAX) Stock: A Good Pick In The Biotech Sector?

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Dynavax Technologies Corporation (DVAX) is headed down in the market in today’s trading session. The company, one that is focused in the biotech space, is presently trading at $7.53 after falling -5.76% so far today. As it relates to biotech stocks, there are a number of factors that have the potential to generate movement in the market. News tends to be one of the biggest reasons for the movement. Here are the recent stories associated with DVAX:

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Mar-20-19 04:20PM Dynavax to Present on Inhaled TLR9 Agonist DV281 at the AACR Annual Meeting 2019
Mar-18-19 04:05PM Dynavax Exercises Option for $75 Million in Non-Dilutive Debt
Mar-07-19 09:44AM Why Dynavax Technologies Cratered in February
Mar-06-19 04:05PM Dynavax to Present at 39th Annual Cowen Healthcare Conference
Mar-01-19 04:46PM Edited Transcript of DVAX earnings conference call or presentation 26-Feb-19 9:30pm GMT

However, when making an investing decision, prospective investors should look into much more than just news, especially in the generally speculative biotechnology sector. Here’s what’s happening in regard to Dynavax Technologies Corporation.

How DVAX Has Been Trending

Although a single session decline, like what we’re seeing from Dynavax Technologies Corporation may cause fear in some investors, a single session move alone should not be the reason for a decision to, or not to, invest in a company. It is generally smart to look into trends beyond a single trading day. As it relates to DVAX, below are the trends that investors have seen:

  • Past 7 Days – Over the past 5 trading sessions, DVAX has seen a price change that amounts to -7.09%.
  • Past Month – The monthly returns from Dynavax Technologies Corporation comes to -28.21%.
  • Past Three Months – Throughout the past 3 months, the stock has generated a return on investment that comes to -24.76%
  • Past Six Months – In the last 6 months, we’ve seen a performance that amounts to -33.14% from the company.
  • This Year So Far – Since the open of this year DVAX has generated a return of -12.68%.
  • Full Year – Lastly, throughout the last full year, we’ve seen a change in the amount of -51.28% out of DVAX. Over this period, the stock has traded at a high of -66.97% and a low of -1.25%.

Ratios That Are Notable

Looking at a few ratios having to do with a stock can give prospective investors a look of just how dangerous and/or potentially profitable a pick might be. Below are some of the most important ratios to consider when looking at DVAX.

Short Ratio – The short ratio is a measure of short interest. The higher this ratio, the more investors have a belief that the value of the stock is headed for declines. In general, biotechnology stocks can carry a higher short ratio. On the other hand, we also tend to see a lot of short squeezes in the space. Nonetheless, as it relates to Dynavax Technologies Corporation, the stock’s short ratio is 12.90.

Quick & Current Ratios – The quick and current ratios are tools that are used to get an idea of the company’s liquidity. Basically, they measure the company’s abilities to cover its debts when they come due based on quick assets or current assets. Because many biotech many companies rely on the continuation of support from investors, the current and quick ratios can seem damning. However, some gems in the biotech sector do have great current and quick ratios. When it comes to DVAX, the quick and current ratios work out to 4.10 and 4.60 respectively.  

Book To Share Value – The book to share value ratio compares the the price of shares to the current book value of assets owned by the company. In this case, that ratio works out to 1.01.

Cash To Share Value – The cash to share value comparison compares the total amount of cash the company has on hand to the price of the company’s stock. Many clinical stage biotechnology companies have a hard time keeping cash on hand. So, if you’re considering an investment in a stock in the biotechnology sector, this is an important ratio to look into. In this case, the cash to share value ratio is 2.21.

Analyst Opinions Of Dynavax Technologies Corporation

Although it’s not a good idea to avoid doing your due diligence and blindly following the opinions of analysts, it is a smart idea to consider their analysis when validating your own opinions when it comes to making investment decisions in the biotech sector. Below are the most recent moves that we’ve seen from analysts as it relates to DVAX.

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Feb-27-19 Reiterated Cantor Fitzgerald Overweight $32 → $28
May-10-18 Upgrade JP Morgan Neutral → Overweight
Mar-08-18 Reiterated Cantor Fitzgerald Overweight $25 → $27
Feb-14-18 Downgrade JP Morgan Overweight → Neutral
Sep-25-17 Reiterated RBC Capital Mkts Outperform $26 → $28

Investors Tend To Follow The Big Money

One thing that I’ve come to understand so far in my brief period here has been that smart investors tend to follow the moves made by big money. That is to say, investors that want to keep their investments relatively safe will watch trades made by institutional investors and those on the inside. With that said, how does the big money flow as it relates to DVAX? Here’s the data:

Institutions own 84.10% of the company. Institutional interest has moved by 10.12% over the past three months. When it comes to insiders, those who are close to the company currently own 1.00% percent of DVAX shares. Institutions have seen ownership changes of an accumulative -15.60% over the last three months.

A Look At 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 65.69M shares of Dynavax Technologies 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, DVAX has a float of 63.24M.

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 DVAX, the short percent of the float is 23.42%.

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 $-1.47. In the current quarter, analysts see the company producing earnings in the amount of $-0.60. Over the last 5 years, DVAX has generated revenue in the amount of $-6.10% with earnings coming in at 7.80%. On a quarter over quarter basis, earnings have seen movement of -42.00% and revenue has seen movement of 25223.80%.

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