ARCA biopharma, Inc. (ABIO) Stock: Is This Biotech Stock Worth Your Attention?


ARCA biopharma, Inc. (ABIO) is gaining in the market today. The stock, focused on the biotech industry, is currently trading at $0.42 after gaining 5.00% so far today. In terms of biotech stocks, there are a number of aspects that have the potential to cause gains in the market. One of the most common is news. Here are the recent stories relating to ABIO:

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Mar-18-19 08:30AM Identification of Phosphodiesterease 3A Polymorphism With Potential to Increase Effectiveness of PDE3 Inhibitors Published in the Journal of the American College of Cardiology
Mar-06-19 08:00AM Dose Response of Beta-Blockers in Adrenergic Receptor Polymorphism Genotypes Paper Published in Circulation: Genomic and Precision Medicine
Feb-27-19 04:15PM ARCA biopharma Announces Fiscal Year 2018 Financial Results and Provides Corporate Update
Feb-20-19 07:30AM ARCA Biopharma Announces FDA Agreement for a Single Phase 3 Clinical Trial to Support Approval for the First Genetically-Targeted Cardiovascular Drug
Jan-16-19 08:30AM Zosano Appoints Linda Grais M.D., J.D. to Board of Directors

However, when making a decision to invest, prospective investors should look at far more than news, especially in the generally speculative biotechnology space. Here’s what’s going on with ARCA biopharma, Inc..

Returns That ABIO Investors Have Seen

Although a single session gain, like the move that we’re seeing from ARCA biopharma, Inc. might make some investors jump for joy, that alone should not be the basis of a decision to, or not to, buy a company’s stock. It’s always important to dig into trends experienced by the stock for a period longer than a single trading session. When it comes to ABIO, here are the returns that we’ve seen:

  • Past 5 Trading Sessions – Throughout the last 5 trading sessions, ABIO has seen a price change amounting to 2.69%.
  • Monthly – The ROI from ARCA biopharma, Inc. in the past month has been 8.53%.
  • Quarterly – Over the last three months, the company has generated a ROI that works out to -16.83%
  • Past Six Months – Over the past 6 months, we have seen a performance of -18.45% from the stock.
  • This Year So Far – Since the open of this year ABIO has resulted in a ROI of 25.94%.
  • Annually – Finally, in the last full year, we have seen performance amounting to -35.38% from ABIO. Throughout this period of time, the stock has traded at a high of -67.19% and a low price of 60.00%.

Ratios To Pay Attention To

Digging into various key ratios having to do with a stock can provide prospective investors an understanding of how risky and/or potentially profitable a stock pick might be. Here are a few of the most important ratios to consider when looking at ABIO.

Short Ratio – The short ratio is a measure of short interest. As the ratio climbs, it means that more investors have a belief that the price of the stock is headed for declines. Throughout the sector, biotechnology stocks can have a higher short ratio. On the other hand, we also see a lot of short squeezes in the space. Nonetheless, when it comes to ARCA biopharma, Inc., it’s short ratio comes to 0.47.

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 mature with only quick assets or current assets. In the biotechnology industry, several companies are heavily reliant on the continuation of support from investors, these ratios can be damning. Nonetheless, some better companies in the biotechnology sector do have positive quick and current ratios. When it comes to ABIO, the quick and current ratios come to 8.50 and 8.50 respectively.  

Book To Share Value – The book to share value compares the the price of shares to the book value of assets owned by the company. In this case, that ratio comes in at 0.43.

Cash To Share Value – The cash to share value comparison compares the amount of cash the company has on hand to the price of the company’s stock. Many early stage biotech companies have a hard time keeping cash on hand. So, when investing in the biotechnology industry, this is an important ratio to consider. In terms of ABIO, the cash to share value is 0.31.

What Analysts Think About ARCA biopharma, Inc.

Although it’s rarely a smart idea to blindly follow the thoughts of analysts, it is a smart idea to use their opinions when validating your own due diligence when it comes to making an investment decision in the biotechnology sector. Below you’ll find the recent moves that we’ve seen from analysts as it relates to ABIO.

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Feb-27-18 Initiated Ascendiant Capital Markets Buy $2
Oct-09-13 Initiated Dawson James Buy $3.75

Big Money And ARCA biopharma, Inc.

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 ABIO, here’s what we’re seeing:

Institutions own 10.90% of the company. Institutional interest has moved by 2.87% over the past three months. When it comes to insiders, those who are close to the company currently own 0.83% percent of ABIO shares. Institutions have seen ownership changes of an accumulative 0.00% over the last three months.

What You Need To Know About 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 21.08M shares of ARCA biopharma, 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, ABIO has a float of 19.54M.

I also find it important to dig into the short float. Think about it, if a large portion of the float is shorted, the overall opinion in the market is that the stock is headed for a steep decline. With regard to ABIO, the short percentage of the float is currently 2.45%. Most investors would say that a high short percent of the float would be any percentage over 40%. Through my work, I have seen that a short percent of the float over 26% is generally a a play that could prove to be very risky.

Financial Results And Expectations

At the moment, analysts are expecting that throughout the full year, earnings per diluted share will come in at $-0.86. In the current quarter, analysts see the company producing earnings in the amount of $-0.11. Over the last 5 years, ABIO has generated revenue in the amount of $0 with earnings coming in at 39.80%. On a quarter over quarter basis, earnings have seen movement of 70.00% and revenue has seen movement of 0.

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