22nd Century Group, Inc. (XXII) Stock: Here’s Why It’s Falling

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22nd Century Group, Inc. (XXII) is trending down in the market today. The stock, focused in the biotechnology sector, is currently trading at $1.80 after falling -5.26% so far in today’s session. As it relates to biotechnology stocks, there are several factors that have the ability to lead to movement in the market. News tends to be one of the biggest reasons for the movement. Here are the recent trending headlines associated with XXII:

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Mar-22-19 06:26PM Lifshitz & Miller LLP Announces Investigation of 22nd Century Group, Activision Blizzard, Inc., Astec Industries, Inc., Avon Products, Inc., Axogen, Inc., Everquote Inc. and Health Insurance Innovations, Inc.
10:31AM 22nd Century Group, Inc. (XXII), Arlo Technologies, Inc. (ARLO), Micron Technology, Inc. (MU) Class Action Reminder Bronstein, Gewirtz & Grossman, LLC
Mar-21-19 03:14PM Glancy Prongay & Murray LLP Reminds Investors of the Deadline in the Class Action Lawsuit Against 22nd Century Group, Inc. (XXII)
12:20PM DEADLINE FRIDAY: The Schall Law Firm Announces the Filing of a Class Action Lawsuit Against 22nd Century Group, Inc. and Encourages Investors with Losses in Excess of $500,000 to Contact the Firm
Mar-20-19 09:28PM Pawar Law Group Announces a Securities Class Action Lawsuit Against 22nd Century Group, Inc. XXII

However, any time investors are making a decision with regard to investing, investors should focus on far more than just news, especially in the generally speculative biotechnology space. Here’s what’s happening in regard to 22nd Century Group, Inc..

Recent Moves From XXII

Although a move down on a single session, like the fall that we’re seeing from 22nd Century Group, Inc. may cause fear in some investors, a single session move alone shouldn’t be the basis of a decision to, or not to, invest in a stock. It is generally important to take a look at trends for a period longer than a single session. As it relates to XXII, here are the returns on investment that we have seen:

  • Past Seven Days – Over the last 7 days, XXII has seen a price change that amounts to -8.63%.
  • Monthly – The ROI from 22nd Century Group, Inc. in the last 30 days works out to -24.69%.
  • Quarterly – Throughout the last 3 months, the stock has generated a return on investment that works out to -23.73%
  • Bi-Annually – Over the past six months, investors have seen a change that equates to -35.94% from the stock.
  • YTD – Since the close of last year XXII has produced a ROI of -27.71%.
  • Full Year – Lastly, throughout the past year, we have seen performance amounting to -27.71% from XXII. Over this period, the stock has traded at a high of -45.29% and a low price of 13.92%.

Ratios To Watch

Looking at a few ratios having to do with a stock can give traders a view of how dangerous and/or potentially profitable a pick may be. Below are a few of the key ratios to consider when looking at XXII.

Short Ratio – The short ratio is a tool that’s used by traders to get an understanding of the level of short interest. The higher this short ratio, the more investors believe that the price of the stock is going to tumble. Throughout the sector, biotech stocks tend to carry a higher short ratio. On the other hand, we also see a lot of short squeezes in the space. Nonetheless, in regard to 22nd Century Group, Inc., the stock’s short ratio comes to 11.18.

Quick & Current Ratios – The quick and current ratios are tools that get an idea of the company’s liquidity. Basically, they measure If a company is able to cover its debts as they mature with only quick assets or current assets. In the biotechnology space, companies rely heavily on the continuation of investor support, these ratios can be damning. Nonetheless, quite a few better companies in the biotech industry come with great current and quick ratios. As far as XXII, the quick and current ratios total up to 11.20 and 11.80 respectively.  

Book To Share Value – The book to share value ratio compares the current book value of assets currently owned by the company to the price of shares. In this particular case, that ratio equates to 0.57.

Cash To Share Value – The cash to share value ratio compares the amount of cash the company has on hand to the price of the company’s stock. Many early stage biotech companies struggle to keep cash on hand. So, if you’re considering an investment in a biotechnology stock, this is an important ratio to consider. In this case, the cash to share value ratio comes to 0.43.

What Analysts Think About 22nd Century Group, Inc.

Although it’s never a smart idea to blindly follow the opinions of analysts, it is a good idea to consider their analysis to validate your own thoughts when it comes to making an investment decision in the biotech space. Here are the recent moves that we’ve seen from analysts as it relates to XXII.

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Oct-16-17 Reiterated Chardan Capital Markets Buy $3.50 → $11.50
Aug-11-16 Reiterated Chardan Capital Markets Buy $4.50 → $3.50

What Are Big Money Players Doing With 22nd Century Group, Inc.

An interesting fact that I’ve learned so far in my brief period on Earth is that good investors tend to follow the moves made by big money. That is to say, investors that want to play it relatively safe will keep an eye on trades made by institutional investors and insiders of the company. With that said, how does the big money flow in regard to XXII? Here’s the data:

  • Institutional Investors – At the moment, institutional investors own 30.80% of the company. However, it’s worth considering that the ownership held by institutions has moved in the amount of 3.43% over the past 3 months.
  • Investors On The Inside – When it comes to insiders, members of the management team and others close to XXII currently own 12.61% of 22nd Century Group, Inc.. Insider ownership of the company has seen a move of 0 in the past quarter.

Looking At Share Counts

Investors and traders tend to have an interest in the amounts of shares both available and outstanding. In regard to 22nd Century Group, Inc., there are currently 130.36M and there is a float of 109.25M. This means that of the total of 130.36M shares of XXII in existence today, 109.25M are able to be traded 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 XXII, the short percent of the float is 19.46%.

What We’ve Seen In earnings results

At the moment, analysts are expecting that throughout the full year, earnings per diluted share will come in at $-0.15. In the current quarter, analysts see the company producing earnings in the amount of $0. Over the last 5 years, XXII has generated revenue in the amount of $29.40% with earnings coming in at 36.10%. On a quarter over quarter basis, earnings have seen movement of -133.10% and revenue has seen movement of 20.30%.

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