Esperion Therapeutics, Inc. (ESPR) Stock: Why It’s Tumbling

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Esperion Therapeutics, Inc. (ESPR) is working its way for to the bottom in the market today. The company, one that is focused on the biotech space, is presently trading at $43.95 after heading down -9.44% so far today. As it relates to biotech companies, there are quite a few factors that have the ability to cause movement in the market. News tends to be one of the biggest reasons for the movement. Here are the recent stories relating to 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

However, when making a decision to invest, prospective investors should look into much more than news, especially in the generally speculative biotech industry. Here’s what’s going on with Esperion Therapeutics, Inc..

The Performance That We’ve Seen From ESPR

While a single session decline, like what we’re seeing from Esperion Therapeutics, Inc. may cause fear in some investors, a single session move by itself shouldn’t be the reason for a decision to, or not to, invest in a company. It’s always important to dig into trends experienced by the stock beyond a single trading day. As it relates to ESPR, here are the returns on investment that investors have seen:

  • Past Seven Days – In the last five trading sessions, ESPR has generated a change in value that amounts to -11.76%.
  • Past Month – The ROI from Esperion Therapeutics, Inc. throughout the past 30 days comes to -3.49%.
  • Past Quarter – In the past 3 months, the company has produced a return that works out to -8.38%
  • Past 6 Months – Throughout the past six months, we have seen a performance of -8.44% from the stock.
  • This Year So Far – Since the the first trading session of this year ESPR has generated a ROI of -4.46%.
  • Full Year – Finally, over the past full year, we’ve seen performance amounting to -42.57% out of ESPR. Throughout this period of time, the stock has sold at a high of -44.58% and a low price of 32.94%.

Crucial Ratios

Digging into various ratios having to do with a company can provide prospective investors a view of how dangerous and/or rewarding a pick may be. Here are a few of the key ratios to think about when digging into ESPR.

Short Ratio – The short ratio is a measure of short interest. As the ratio heads up, it means that more investors have a belief that the value of the stock is headed for declines. Across the sector, biotechnology stocks can have a higher short ratio. However, we also see quite a few short squeezes in the space. Nonetheless, in regard to Esperion Therapeutics, Inc., it’s short ratio comes to 8.41.

Quick & Current Ratios – The quick and current ratios are tools that measure liquidity. Basically, they measure If a company is able to pay for its debts as they mature with only current assets or quick assets. In the biotech sector, companies rely on continued investor support, the quick and current ratios can look upsetting. However, quite a few better companies in the biotech industry do have good current and quick ratios. In terms of ESPR, the quick and current ratios come to 2.20 and 2.20 respectively.  

Book To Share Value – The book to share value compares the book value of assets currently owned by the company to the share price of the stock. as it relates to Esperion Therapeutics, Inc., the book to share value ratio equates to 2.95.

Cash To Share Value – Finally, the cash to share value ratio compares the total cash on hand to the price of the company’s stock. Several clinical stage biotech companies have a hard time keeping cash on hand. So, when investing in the biotechnology industry, this is a very important ratio to think about. In this case, the cash to share value ratio comes to 5.16.

What Analysts Say About Esperion Therapeutics, Inc.

While it’s not a smart idea to avoid doing your DD and blindly following the opinions of analysts, it is a good idea to use their thoughts in order to validate your own before making investment decisions in the biotech sector. Here are the recent moves that we’ve seen from analysts when it comes 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

Show Me The Big Money

An interesting fact I have learned in my short period on Earth has been that smart investors tend to follow the moves made by big money investors. So, investors that are trying to keep the risk down will watch investments made by institutional investors as well as insiders of the company. With that said, what does the big money picture look like when it comes to ESPR? Here’s the information:

Institutions own 0 of the company. Institutional interest has moved by -4.29% over the past three months. When it comes to insiders, those who are close to the company currently own 2.20% percent of ESPR shares. Institutions have seen ownership changes of an accumulative 19.58% over the last three months.

Float Information

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 26.37M shares of Esperion Therapeutics, Inc. 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, ESPR has a float of 24.30M.

I also like to pay attention to the short percentage of the float. Think about it, if a large portion of the float is sold short, the overall opinion among traders is that the equity is headed for a deep dive. As far as ESPR, the short percentage of the float is currently 20.41%. In general, high short percent of the float would be considered to be anything over 40%. However, I’ve found that a short percent of the float over 26% is generally a a play that could prove to be very risky.

Earnings

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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