AmerisourceBergen Corporation (ABC) Stock: Here’s Why It’s Gaining

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AmerisourceBergen Corporation (ABC) is climbing in the market today. The stock, focused on the service industry, is currently trading at $78.77 after gaining -1.98% so far today. In terms of service companies, there are a number of aspects that have the ability to lead to gains in the market. News is one of the most common reasons for movement. Here are the recent trending headlines associated with ABC:

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Mar-13-19 12:10PM CSE New Listing – American Battery Metals Commences Trading on the Canadian Securities Exchange – Video News Alert on Investmentpitch.com
08:00AM American Battery Metals Announces Exploration Program for Temple Mountain and New Corporate Website
Mar-11-19 01:35PM Heres What AmerisourceBergen Corporations (NYSE:ABC) ROCE Can Tell Us
Mar-07-19 07:30AM Evio Beauty Group Ltd. has elevated green beauty with the launch of its newest colour cosmetics collection, Evio Beauty
07:30AM Evio Beauty Group Ltd. has elevated green beauty with the launch of its newest colour cosmetics collection, Evio Beauty

Nonetheless, any time investors are making a decision to invest, investors should focus on far more than news, this is especially the case in the ever complex service industry. Here’s what’s going on with AmerisourceBergen Corporation.

Recent Movement Out of ABC

Although a gain in a single session, like what we’re seeing from AmerisourceBergen Corporation might make some investors unhappy, a single session fall alone shouldn’t be the basis of a decision to, or not to, invest in a stock. It is always smart to take a look at trends experienced by the stock just a single trading session. In the case of ABC, here are the returns on investment that we’ve seen:

  • Weekly – Throughout the past seven days, ABC has produced a change in value that amounts to -1.76%.
  • Past 30 Days – The ROI from AmerisourceBergen Corporation over the last month has been -7.31%.
  • Quarterly – In the last three months, the stock has generated a return that comes to 3.22%
  • Past Six Months – In the past six months, investors have seen a change that equates to -11.88% from the company.
  • This Year So Far – Since the the last trading session of last year ABC has generated a ROI of 5.87%.
  • Full Year – Lastly, throughout the past year, investors have seen a change amounting to -11.99% from ABC. In this period of time, the stock has traded at a high of -17.08% and a low of 13.57%.

Notable Ratios

Looking at a few ratios associated with a stock can give prospective traders a view of just how dangerous and/or rewarding a pick may be. Below are a few of the key ratios to think about when looking at ABC.

Short Ratio – The short ratio is a measure of short interest. The higher this ratio, the more investors believe that the stock is going to climb. In general, strong service stocks tend to have a lower short ratio. On the other hand, we also see a lot of short squeezes in the space. Nonetheless, when it comes to AmerisourceBergen Corporation, it’s short ratio comes to 4.65.

Quick & Current Ratios – The quick and current ratios are ratios that measure liquidity. Essentially, they measure the company’s abilities to pay its debts when they mature based on current assets or quick assets. do have positive current and quick ratios. As far as ABC, the quick and current ratios work out to 0.50 and 0.90 respectively.  

Book To Share Value – The book to share value ratio compares the the price of shares to the current book value of assets that are owned by the company. as it relates to AmerisourceBergen Corporation, the book to share value ratio comes in at 14.38.

Cash To Share Value – The cash to share value ratio compares the amount of cash the company has on hand to the price of shares. In this case, the cash to share value works out to 12.13.

What Are Big Money Players Doing With AmerisourceBergen Corporation

An interesting fact I have come to understand so far in my brief period as an intelligence has been that smart money tends to follow big money. That is to say, investors that are trying to keep their investments relatively safe will watch investments made by institutions and insiders. With that said, how does the big money flow as it relates to ABC? Here’s the scoop:

  • Institutional Investors – At the moment, institutions own 67.90% of ABC. On the other hand, it’s important to note that the ownership held by institutions has seen a move of -0.60% over the past 3 months.
  • Insider Holdings – When it comes to insiders, members of the management team and others close to ABC currently own 0.20% of the company. Insider ownership of the company has moved -37.20% throughout the last quarter.

Analyst Opinions With Regard To AmerisourceBergen Corporation

While it’s rarely a good idea to avoid doing your due diligence and blindly following the thoughts of analysts, it is a good idea to use their opinions to validate your own thoughts before making an investment decision in the service sector. Here are the most recent moves that we’ve seen from analysts when it comes to ABC.

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Jan-17-19 Initiated UBS Buy $89
Jul-20-18 Downgrade Robert W. Baird Outperform → Neutral
Mar-08-18 Initiated Barclays Equal Weight $104
Feb-27-18 Resumed BofA/Merrill Buy
Feb-08-18 Reiterated Needham Buy $117 → $113

Earnings

At the moment, analysts are expecting that throughout the full year, earnings per diluted share will come in at $7.37. In the current quarter, analysts see the company producing earnings in the amount of $1.96. Over the last 5 years, ABC has generated revenue in the amount of $13.80% with earnings coming in at 17.80%. On a quarter over quarter basis, earnings have seen movement of 34.20% and revenue has seen movement of 12.20%.

Looking At 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 209.33M shares of AmerisourceBergen Corporation 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, ABC has a float of 153.88M.

I also find it important to take a look at the short percentage of the float. After all, when a high portion of the float available for trading is shorted, the overall feeling among investors is that the company is going to take a dive. As far as ABC, the percentage of the float that is sold short comes to a total of 4.32%. In general, high short percent of the float is any percentage over 40%. However, I have found that anything over 26% is probably going to be a risky play.

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