Arrowhead Pharmaceuticals, Inc. (ARWR) Stock: Here’s Why It’s Tumbling

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Arrowhead Pharmaceuticals, Inc. (ARWR) is headed down in the market in today’s trading session. The company, one that is focused on the biotechnology sector, is currently trading at $17.77 after tumbling -6.82% so far in today’s session. When it comes to biotech stocks, there are quite a few factors that have the ability to cause movement in the market. One of the most common is news. Here are the most recent headlines relating to ARWR:

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Mar-18-19 07:30AM Arrowhead Pharmaceuticals Files IND for Pivotal Phase 2/3 Study of ARO-AAT for Treatment of Alpha-1 Liver Disease
Mar-11-19 07:30AM Arrowhead Pharmaceuticals Begins Dosing in Phase 1 Study of ARO-APOC3 for Treatment of Hypertriglyceridemia
02:25AM Here’s Why Arrowhead Pharmaceuticals Gained 38.2% in February
Mar-07-19 08:01AM Does Arrowhead Pharmaceuticals, Inc.s (NASDAQ:ARWR) CEO Salary Reflect Performance?
Mar-01-19 07:30AM Arrowhead Pharmaceuticals to Present at Upcoming March 2019 Conferences

Nonetheless, when making an investing decision, investors should focus on far more than news, especially in the highly speculative biotech industry. Here’s what’s happening with Arrowhead Pharmaceuticals, Inc..

Recent Trends From ARWR

While a move toward the top in a single session, like the fall that we’re seeing from Arrowhead Pharmaceuticals, Inc. may cause fear in some investors, a single session move alone should not be the basis of a decision to, or not to, invest in a company. It is generally important to take a look at trends experienced by the stock for a period longer than a single trading day. As it relates to ARWR, here are the movements that we have seen:

  • Past 7 Days – In the past 7 days, ARWR has produced a change in price in the amount of -4.56%.
  • Past 30 Days – The return on investment from Arrowhead Pharmaceuticals, Inc. over the last month has been -1.39%.
  • Past 3 Months – Over the past quarter, the stock has generated a ROI that works out to 32.12%
  • Past 6 Months – Over the past six months, we have seen a change that equates to -4.36% from the company.
  • YTD – Since the close of last year ARWR has generated a ROI of 43.08%.
  • Annually – Lastly, in the last full year, investors have seen performance of 142.76% from ARWR. Over this period of time, the stock has traded at a high price of -20.63% and a low price of 183.87%.

Notable Ratios

Looking at a few ratios associated with a stock can provide prospective traders an understanding of how dangerous and/or potentially profitable a an investment option might be. Below are a few of the key ratios to consider when digging into ARWR.

Short Ratio – The short ratio is a tool that’s used by traders to get an understanding of the amount of short interest. As the short ratio goes higher, it shows that more investors have a belief that the price of the stock is going to fall. Throughout the sector, biotechnology stocks tend to have a higher short ratio. However, we tend to see a lot of short squeezes in the sector. Nonetheless, in relation to Arrowhead Pharmaceuticals, Inc., the stock’s short ratio clocks in at 9.31.

Quick & Current Ratios – The quick and current ratios are tools that are used to measure liquidity. Basically, they measure whether or not a company can pay its debts when they mature using quick assets or current assets. Because many biotech companies rely on continued support from investors, the quick and current ratios can be upsetting. However, several gems in the biotechnology sector do have positive current and quick ratios. In terms of ARWR, the quick and current ratios total up to 1.80 and 1.80 respectively.  

Book To Share Value – The book to share value ratio compares the the price of shares to the book value of assets that are owned by the company. In this case, that ratio comes in at 1.89.

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. Several early stage biotechnology companies have a hard time keeping cash on hand. So, if you’re considering an investment in a stock in the biotech industry, this is an important ratio to think about. In this case, the cash to share value ratio comes to 2.60.

What Analysts Think About Arrowhead Pharmaceuticals, Inc.

While it’s not a smart idea to blindly follow the thoughts of analysts, it is a good idea to consider their thoughts in order to validate your own opinions before making an investment decision in the biotech industry. Here are the recent moves that we have seen from analysts as it relates to ARWR.

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Sep-07-18 Upgrade B. Riley FBR Neutral → Buy $18 → $19
Sep-06-18 Reiterated Chardan Capital Markets Buy $17.50 → $24.50
Aug-08-18 Reiterated Cantor Fitzgerald Overweight $13 → $18
Jul-02-18 Reiterated Chardan Capital Markets Buy $9.50 → $16
May-09-18 Upgrade Cantor Fitzgerald Neutral → Overweight $13

Is Big Money Interested in Arrowhead Pharmaceuticals, Inc.?

An interesting fact I’ve learned in my short time on Earth is that smart money tends to follow the moves made by big money. Usually, investors that are trying to keep the risk down will watch investments made by institutions and those on the inside. So, is big money flowing when it comes to ARWR? Here’s the scoop:

  • Institutions – At the moment, institutional investors own 63.60% of Arrowhead Pharmaceuticals, Inc.. However, it’s important to note that institutional ownership has changed in the amount of 5.55% throughout the last quarter.
  • Insiders – When it comes to insiders, insiders of the company currently hold 4.40% of the company. Insider ownership of the company has seen a change of -24.89% in the last quarter.

Interested In How Many Shares Are Available?

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 93.85M shares of Arrowhead Pharmaceuticals, 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, ARWR has a float of 85.86M.

It’s also important to look at the short percent. After all, when a large percentage of the float is shorted, the overall feeling among traders is that the equity is headed for a deep dive. With regard to ARWR, the percentage of the float that is currently being sold short sits at 18.94%. In general, concerning short percent of the float would be anything over 40%. Nonetheless, I have found that any short percent of the float over 26% is likely a play that comes with hefty risk.

Financial Performance

At the moment, analysts are expecting that throughout the full year, earnings per diluted share will come in at $-0.24. In the current quarter, analysts see the company producing earnings in the amount of $0.19. Over the last 5 years, ARWR has generated revenue in the amount of $123.40% with earnings coming in at 12.90%. On a quarter over quarter basis, earnings have seen movement of 173.70% and revenue has seen movement of 891.40%.

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