Nektar Therapeutics (NKTR) Stock: Is This Biotech Stock Worth Your Consideration?

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Nektar Therapeutics (NKTR) is making a move down in the market in today’s trading session. The stock, focused on the biotechnology space, is currently priced at $32.61 after heading down -5.23% so far today. As it relates to biotech stocks, there are several aspects that have the potential to lead to price movement in the market. News is one of the most common reasons for movement. Here are the most recent stories associated with NKTR:

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Mar-12-19 06:00AM 3 Stocks That Could Double Your Money
Mar-07-19 09:49AM Stock Market News For Mar 7, 2019
12:02AM Edited Transcript of NKTR earnings conference call or presentation 28-Feb-19 10:00pm GMT
Mar-06-19 04:30PM Nektar Therapeutics to Webcast Presentation at the Cowen and Company 39th Annual Health Care Conference
06:28AM Biotech Companies Slump Midday With FDA Chief Set to Leave

Nonetheless, when making a decision with regard to investing, investors should look at much more than news, this is especially the case in the highly speculative biotechnology space. Here’s what’s going on with Nektar Therapeutics.

Performance Trends That We’ve Seen From NKTR

While a decline in a single session, like the fall that we’re seeing from Nektar Therapeutics may make some investors upset, a single session decline by itself should not be the basis of a decision to, or not to, buy a company’s stock. It is generally smart to dig into trends experienced by the stock further out than a single session. In the case of NKTR, below are the trends that investors have experienced:

  • Past 5 Sessions – Over the last week, NKTR has seen a change in value in the amount of -13.41%.
  • Past 30 Days – The ROI from Nektar Therapeutics over the last month comes to -23.83%.
  • Past 3 Months – Throughout the past quarter, the stock has generated a ROI of -4.54%
  • Past 6 Months – In the past six months, we’ve seen a change that works out to -44.07% from the company.
  • Year To Date – Since the close of last year NKTR has generated a return on investment of -0.79%.
  • Annually – Finally, over the last year, investors have seen movement of -68.95% from NKTR. In this period, the stock has traded at a high of -70.11% and a low of 11.60%.

Rations That Investors Should Consider

Looking at a few ratios having to do with a company can give investors a look of how risky and/or potentially profitable a stock pick may be. Below are a few of the key ratios to look at when digging into NKTR.

Short Ratio – The short ratio is a measure of short interest. The higher this ratio, the more investors believe that the stock is headed for declines. Across the sector, biotechnology stocks can have a higher short ratio. However, we also see a lot of short squeezes in the space. Nonetheless, as it relates to Nektar Therapeutics, it’s short ratio comes to 9.92.

Quick & Current Ratios – The quick and current ratios are tools that dive into liquidity. Basically, they measure the company’s abilities to cover its debts when they mature based on current assets or quick assets. Because many biotech companies rely heavily on continued support from investors, the current and quick ratios can look upsetting. Nonetheless, quite a few better companies in the biotech sector do have great quick and current ratios. When it comes to NKTR, the quick and current ratios come to 17.40 and 17.50 respectively.  

Book To Share Value – The book to share value compares the the share price to the book value of assets owned by the company. In the case of Nektar Therapeutics, that ratio works out to 9.91.

Cash To Share Value – Finally, the cash to share value comparison compares the total cash on hand to the price of the company’s stock. Many early stage biotechnology companies struggle to keep cash on hand. So, if you’re considering an investment in a biotech stock, this is an important ratio to consider. In this case, the cash to share value ratio is 7.50.

How Analysts Feel About Nektar Therapeutics

Although it’s not a good idea to unknowingly follow the thoughts of analysts, it is a smart idea to use their thoughts when validating your own due diligence before making an investment decision in the biotechnology industry. Here are the most recent moves that we’ve seen from analysts with regard to NKTR.

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Mar-15-19 Initiated SVB Leerink Mkt Perform $38
Dec-13-18 Initiated Goldman Buy $62
Jun-11-18 Downgrade H.C. Wainwright Buy → Neutral $54
Jun-04-18 Reiterated H.C. Wainwright Buy $125 → $97
Apr-20-18 Initiated Seaport Global Securities Buy $120

Big Money And Nektar Therapeutics

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 NKTR, here’s what we’re seeing:

Institutions own 96.10% of the company. Institutional interest has moved by 3.03% over the past three months. When it comes to insiders, those who are close to the company currently own 1.00% percent of NKTR shares. Institutions have seen ownership changes of an accumulative -12.93% over the last three months.

Float Information

Traders and investors tend to like to know the amounts of shares both outstanding and available. When it comes to Nektar Therapeutics, there are currently 177.98M with a float of 172.57M. These numbers mean that of the total of 177.98M shares of NKTR currently in existence today, 172.57M are available to trade hands by the public.

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 NKTR, the short percent of the float is 10.74%.

Financial Performance

What have ween seen from NKTR in terms of financial results?Here’s what you need to know:

  • Analyst Expectations – As it stands, analysts expect that the company will generate EPS of -2.51, with -0.68 to be announced in the earnings report for the current quarter. Although this information isn’t tide to earnings, because we are chatting on the topic of Wall Street analysts, the stock is currently graded as a 1.80 on a scale from 1 to 5 on which 1 is the worst possible Wall St. analyst grade and 5 is the best.
  • 5-Year Sales – Throughout the past 5 years, Nektar Therapeutics has created a change in revenue in the amount of 51.60%. Earnings in the last 5 years have generated movement in the amount of 36.30%.
  • Quarter Over Quarter – In terms of quarter over quarter earnings performance, or Q/Q data as it is generally represented in the world of humans, Nektar Therapeutics has generated a earnings change by -141.80%. NKTR has also seen a change in regard to sales that comes to a total of -58.30%.

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