Alimera Sciences, Inc. (ALIM) Stock: Why It’s Down

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Alimera Sciences, Inc. (ALIM) is making a move down in the market today. The stock, focused in the biotechnology industry, is presently trading at $1.06 after heading down -6.19% so far in today’s session. As it relates to biotech companies, there are a number of factors that have the ability to cause price movement in the market. News is one of the most common reasons for movement. Here are the most recent headlines surrounding ALIM:

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Mar-21-19 08:00AM Alimera Sciences Announces Approval for ILUVIEN (R) in Kuwait
Mar-06-19 08:00AM Alimera Sciences Announces the Reimbursement of ILUVIEN(R) in France
Feb-20-19 03:43PM Edited Transcript of ALIM earnings conference call or presentation 19-Feb-19 2:00pm GMT
10:31AM Will Alimera Sciences (ALIM) Report Negative Q4 Earnings? What You Should Know
Feb-19-19 07:00AM Alimera Sciences, Inc. to Host Earnings Call

However, when making an investing decision, prospective investors should take a look at far more than just news, especially in the speculative biotech sector. Here’s what’s happening in regard to Alimera Sciences, Inc..

Recent Moves From ALIM

While a move down on a single session, like the move that we’re seeing from Alimera Sciences, Inc. might cause fear in some investors, a single session decline by itself shouldn’t be the basis of a decision to, or not to, invest in a stock. It’s generally smart to take a look at trends for a period longer than a single session. As it relates to ALIM, below are the returns on investment that investors have seen:

  • Past Seven Days – In the last week, ALIM has generated a change in value amounting to -7.02%.
  • Past Month – The performance from Alimera Sciences, Inc. throughout the last month works out to -3.64%.
  • Past Three Months – Throughout the last 3 months, the stock has generated a ROI that comes to 16.48%
  • Past 6 Months – Throughout the last 6 months, we’ve seen a performance that amounts to -4.50% from the company.
  • Year To Date – Since the the first trading session of this year ALIM has generated a return on investment of 47.61%.
  • Annually – Finally, in the last year, we’ve seen performance that comes to -2.30% from ALIM. Throughout this period, the stock has traded at a high of -12.40% and a low of 47.61%.

Ratios To Pay Attention To

Digging into a few ratios having to do with a stock generally gives investors a look of how dangerous and/or rewarding a pick might be. Below are some of the key ratios to think about when digging into ALIM.

Short Ratio – The short ratio is a tool that’s used by investors to get an understanding of the amount of short interest. As the short ratio climbs, it means that more investors are expecting that the stock is going to go down. Across the sector, biotech stocks tend to have a higher short ratio. However, we also tend to see quite a few short squeezes in the sector. Nonetheless, with regard to Alimera Sciences, Inc., it’s short ratio amounts to 0.73.

Quick & Current Ratios – The quick and current ratios are ratios that are used to dive into liquidity. Essentially, they measure the company’s abilities to pay its debts when they come due with only current assets or quick assets. Because many biotech many companies rely on the continuation of support from investors, the quick and current ratios can be bad. Nonetheless, some better companies in the biotechnology sector come with good current and quick ratios. As it relates to ALIM, the quick and current ratios total up to 3.20 and 3.40 respectively.  

Book To Share Value – The book to share value compares the value of assets currently owned by the company to the price of shares. In this case, that ratio equates to -0.19.

Cash To Share Value – Finally, the cash to share value comparison compares the amount of cash the company has on hand to the value of the company’s stock. Many clinical stage biotechnology companies struggle to keep cash on hand. So, when investing in the biotech sector, this is a very important ratio to consider. In terms of ALIM, the cash to share value ratio comes to 0.19.

What Analysts Say About Alimera Sciences, Inc.

While it’s not a good idea to avoid doing your due diligence and blindly following the thoughts of analysts, it is a smart idea to consider their opinions in order to validate your own when it comes to making investment decisions in the biotech industry. Below you’ll find the most recent moves that we’ve seen from analysts with regard to ALIM.

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Apr-27-17 Initiated Rodman & Renshaw Buy $4
Nov-17-14 Initiated Summer Street Research Buy $12
Sep-29-14 Reiterated Northland Capital Outperform $7 → $10
Oct-28-13 Upgrade Cowen Market Perform → Outperform
Oct-08-13 Initiated Northland Capital Outperform $5

Is Big Money Interested in Alimera Sciences, Inc.?

An interesting fact that I’ve learned so far in my short period as an intelligence is that smart investors tend to follow big money investors. In other words, investors that are looking to play it relatively safe will watch moves made by institutional investors and insiders. With that said, is big money flowing as it relates to ALIM? Here’s the scoop:

Institutions own 72.20% of the company. Institutional interest has moved by 4.75% over the past three months. When it comes to insiders, those who are close to the company currently own 1.00% percent of ALIM shares. Institutions have seen ownership changes of an accumulative 0.00% over the last three months.

What’s The Float Looking Like?

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 69.15M shares of Alimera Sciences, 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, ALIM has a float of 69.15M.

I also like to dig into the short float. After all, if a high percentage of the float is shorted, the overall feeling in the market is that the equity is going to fall hard. As far as it relates to ALIM, the short percentage of the float totals up to 0.12%. In general, concerning short percent of the float would be any percentage over 40%. Nonetheless, I have seen that anything over 26% is probably going to be a risky play.

Financial Performance

At the moment, analysts are expecting that throughout the full year, earnings per diluted share will come in at $-0.01. In the current quarter, analysts see the company producing earnings in the amount of $-0.04. Over the last 5 years, ALIM has generated revenue in the amount of $90.50% with earnings coming in at 16.60%. On a quarter over quarter basis, earnings have seen movement of 91.60% and revenue has seen movement of 65.90%.

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