Mersana Therapeutics, Inc. (MRSN) Stock: A Good Pick In The Biotechnology Sector?

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Mersana Therapeutics, Inc. (MRSN) is making a move down in the market in today’s trading session. The company, focused on the biotechnology industry, is presently trading at $4.96 after tumbling -6.77% so far in today’s session. In terms of biotech stocks, there are quite a few aspects that have the potential to cause declines in the market. News tends to be one of the biggest reasons for the movement. Here are the most recent trending headlines surrounding MRSN:

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Mar-12-19 11:02AM What Should You Know About Mersana Therapeutics, Inc.s (NASDAQ:MRSN) Earnings Trajectory?
Mar-11-19 02:33PM JPMorgan Downgrades Mersana, Says Data Readouts Unlikely To Reverse Street Sentiment
Mar-08-19 06:00AM Mersana Therapeutics Announces Fourth Quarter and Full Year 2018 Financial Results and Provides Business Updates
Mar-06-19 08:00AM Mersana Therapeutics to Present at the Cowen and Company 39th Annual Healthcare Conference
Mar-05-19 04:01PM Mersana Therapeutics Announces Closing of Public Offering of Common Stock and Full Exercise of Underwriters Option to Purchase Additional Shares

Nonetheless, when making a decision to invest, investors should take a look at much more than just news, this is especially the case in the speculative biotechnology sector. Here’s what’s happing when it comes to Mersana Therapeutics, Inc..

Recent Movement From MRSN

While a single session decline, like what we’re seeing from Mersana Therapeutics, Inc. may lead to fear in some investors, that alone shouldn’t be the reason for a decision to, or not to, buy a company’s stock. It is always a good idea to look at trends further out than a single trading session. As it relates to MRSN, below are the movements that we have seen:

  • Past 7 Days – Throughout the last seven days, MRSN has generated a change in value in the amount of 3.70%.
  • Past 30 Days – The return from Mersana Therapeutics, Inc. in the past month comes to -20.95%.
  • Past Quarter – Over the last 3 months, the stock has generated a ROI that works out to 11.30%
  • Bi-Annually – In the past six months, investors have seen a change that works out to -63.00% from the stock.
  • Year To Date – Since the the first trading session of this year MRSN has produced a ROI of 30.39%.
  • Full Year – Lastly, in the last year, we’ve seen movement that comes to -69.60% from MRSN. In this period of time, the stock has traded at a high price of -79.30% and a low price of 74.34%.

Notable Ratios

Looking at a few ratios associated with a stock can give investors a look of how dangerous and/or rewarding a pick may be. Here are a few of the important ratios to look at when digging into MRSN.

Short Ratio – The short ratio is a measure of short interest. The higher this short ratio, the more investors have a belief that the value of the stock is going to go down. In general, biotech stocks tend to carry a higher short ratio. However, we tend to see a lot of short squeezes in the sector. Nonetheless, with regard to Mersana Therapeutics, Inc., the stock’s short ratio comes to 2.74.

Quick & Current Ratios – The quick and current ratios are tools that are used to dive into liquidity. Essentially, they measure whether or not a company can cover its debts when they come due based on quick assets or current assets. In the biotech industry, many companies rely heavily on continued support from investors, these ratios can look upsetting. However, several better companies in the biotechnology space do have great current and quick ratios. When it comes to MRSN, the quick and current ratios add up to 1.10 and 1.10 respectively.  

Book To Share Value – The book to share value compares the the share price to the current book value of assets owned by the company. when it comes to Mersana Therapeutics, Inc., the book to share value ratio comes in at 0.38.

Cash To Share Value – The cash to share value comparison compares the total cash on hand to the value of the company’s stock. Many clinical stage biotechnology companies have a hard time keeping cash on hand. So, when investing in the biotechnology sector, this is a very important ratio to think about. In this case, the cash to share value ratio is 1.44.

How Analysts Feel About Mersana Therapeutics, Inc.

Although it’s never a smart idea to unknowingly follow the thoughts of analysts, it is a smart idea to consider their analysis when validating your own thoughts before making investment decisions in the biotech sector. Here are the recent moves that we have seen from analysts when it comes to MRSN.

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Mar-11-19 Downgrade JP Morgan Neutral → Underweight
Nov-14-18 Upgrade Leerink Partners Mkt Perform → Outperform
May-08-18 Initiated Robert W. Baird Outperform
Mar-19-18 Downgrade JP Morgan Overweight → Neutral

Moves From Big Money Players

One thing that I’ve come to understand in my brief time in existence has been that smart investors tend to follow big money players. Usually, investors that want to keep the risk down will watch trades made by institutions as well as those on the inside. So, is big money interested in regard to MRSN? Here’s the information:

  • Institutional Investors – Currently, institutions hold 38.10% of the company. On the other hand, it is worth mentioning that institutional ownership has seen a move in the amount of -8.74% over the last 3 months.
  • Insider Holdings – As far as insiders go, those close to the company currently hold 0 of the company. Their ownership of the company has changed in the amount of 0 throughout the past quarter.

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 48.58M shares of Mersana 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, MRSN has a float of 43.79M.

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 MRSN, the short percent of the float is 1.49%.

Earnings

What have ween seen from MRSN in terms of financial results?Here’s what you’re looking for:

  • Analyst Expectations – Currently, Wall St. analysts have expectations that MRSN will report EPS that totals up to be -1.64, with -0.03 being announced in the earnings announcement for the current quarter. Although this data is not based on earnings, since we’re talking about Wall St. analysts, Mersana Therapeutics, Inc. is presently graded as a 1.80 when rated on a scale from 1 to 5 on which 1 is the poorest analyst rating and 5 is the best rating.
  • 5-Year Sales – Throughout the past half decade, Mersana Therapeutics, Inc. has generated a movement in sales volume that comes to a total of 0. Earnings through the past half decade have seen a change of 0.
  • Q/Q – In terms of quarter over quarter earnings performance, or Q/Q data as it is often referred to as in the human world, MRSN has experienced a change in earnings that comes to a total of -57.90%. Mersana Therapeutics, Inc. has also experienced a change in regard to sales that adds up to -63.60%.

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