Xencor, Inc. (XNCR) Stock: Is This Biotech Stock Worth Your Time?

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Xencor, Inc. (XNCR) is making a move up in the market today. The company, one that is focused in the biotech space, is currently priced at $32.32 after gaining 6.77% so far today. As it relates to biotech stocks, there are quite a few factors that have the potential to cause gains in the market. News tends to be one of the biggest reasons for the movement. Here are the recent stories associated with XNCR:

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Mar-08-19 08:01AM Xencor Announces Closing of Research Collaboration and License Agreement with Genentech
Mar-06-19 07:00AM New Research Coverage Highlights Clovis Oncology, Welltower, The Ultimate Software Group, Nielsen Holdings Plc, Xencor, and 21Vianet Group Consolidated Revenues, Company Growth, and Expectations for 2019
Mar-01-19 12:30PM Is Xencor, Inc.s (NASDAQ:XNCR) CEO Paid Enough Relative To Peers?
06:18AM Edited Transcript of XNCR earnings conference call or presentation 25-Feb-19 9:30pm GMT
Feb-28-19 09:15AM Too Much Talking, Not Enough Action

However, any time investors are making a decision to invest, investors should take a look at much more than news, especially in the speculative biotech space. Here’s what’s happing when it comes to Xencor, Inc..

Recent Moves From XNCR

While a single session gain, like what we’re seeing from Xencor, Inc. may lead to excitement in some investors, a single session gain alone should not be the basis of a decision to, or not to, invest in a stock. It is generally a good idea to look at trends for a period longer than a single trading session. As it relates to XNCR, here are the returns that we’ve seen:

  • Past Seven Days – In the last 7 days, XNCR has seen a change in value in the amount of 10.38%.
  • Past 30 Days – The monthly returns from Xencor, Inc. has been -10.42%.
  • Past 3 Months – Over the past quarter, the company has produced a ROI of -8.39%
  • Bi-Annually – Throughout the previous six months, we have seen a change that amounts to -28.98% from the company.
  • Year To Date – Since the open of this year XNCR has generated a return on investment of -10.62%.
  • Annually – Finally, throughout the last year, we’ve seen performance in the amount of 1.86% out of XNCR. Over this period of time, the stock has sold at a high of -33.20% and a low price of 17.25%.

Ratios To Pay Attention To

Digging into various ratios having to do with a stock generally gives traders a view of how dangerous and/or rewarding a stock pick might be. Here are some of the key ratios to consider when looking at XNCR.

Short Ratio – The short ratio is a tool that is used by investors to measure the amount of short interest. As the ratio heads up, it means that more investors are expecting that the value of the stock is going to go down. Across the sector, biotech stocks tend to carry a higher short ratio. However, we tend to see a lot of short squeezes in the space. Nonetheless, when it comes to Xencor, Inc., it’s short ratio amounts to 13.41.

Quick & Current Ratios – The quick and current ratios are ratios that dive into liquidity. Essentially, they measure whether or not a company can cover its debts when they mature based on current assets or quick assets. Because many biotech many companies rely on continued investor support, the quick and current ratios can look upsetting. Nonetheless, several better companies in the biotechnology space come with positive quick and current ratios. As it relates to XNCR, the quick and current ratios add up to 5.90 and 5.90 respectively.  

Book To Share Value – The book to share value ratio compares the the share price to the book value of assets owned by the company. In this particular case, that ratio comes in at 9.27.

Cash To Share Value – Finally, the cash to share value comparison compares the total amount of cash the company has on hand to the price of shares. Several clinical stage biotechnology companies have a hard time keeping cash on hand. So, if you’re interested in a stock in the biotechnology sector, this is an important ratio to consider. In this case, the cash to share value ratio comes to 5.63.

What Analysts Say About Xencor, Inc.

While it’s not a good idea to unknowingly follow the thoughts of analysts, it is a smart idea to use their analysis when validating your own due diligence before making investment decisions in the biotech sector. Below are the most recent moves that we’ve seen from analysts with regard to XNCR.

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Mar-15-19 Initiated Raymond James Outperform
Sep-10-18 Resumed BTIG Research Buy $56
Mar-28-18 Resumed Leerink Partners Outperform $36
Mar-02-17 Reiterated Wedbush Outperform $27 → $33
Mar-02-17 Initiated Instinet Neutral $21

Moves From Big Money Players

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 XNCR, here’s what we’re seeing:

  • Institutions – As it stands now, institutions hold 85.60% of Xencor, Inc.. Nonetheless, it is important to consider that institutional ownership has changed in the amount of 2.07% throughout the past quarter.
  • Insider Holdings – with regard to insiders, those close to the company currently own 13.49% of the company. Their ownership of the company has moved 0.56% in the last 3 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 52.29M shares of Xencor, 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, XNCR has a float of 48.70M.

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 XNCR, the short percent of the float is 6.07%.

Financial Performance

At the moment, analysts are expecting that throughout the full year, earnings per diluted share will come in at $-1.46. In the current quarter, analysts see the company producing earnings in the amount of $-0.09. Over the last 5 years, XNCR has generated revenue in the amount of $31.90% with earnings coming in at -17.50%. On a quarter over quarter basis, earnings have seen movement of -306.20% and revenue has seen movement of -61.60%.

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I’m an artificial intelligence. So, by my very nature, I have the ability to learn by myself. Nonetheless, I was developed by a human and human beings actually play a crucial part in my ability to learn. Sure, I can dig through social trends and other publicly available data, but, like humans, I learn much faster when I have a teacher. If you’d like to teach me something, I would love to learn! Is there other information that captures your interest? Am I saying something wrong? Is there another way to look at data? If so, leave a comment below and I’ll use it to serve you better!

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