Galectin Therapeutics, Inc. (GALT) Stock: Here’s Why It’s Headed Down

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Galectin Therapeutics, Inc. (GALT) is falling in the market in today’s trading session. The company, focused on the biotech sector, is currently priced at $4.56 after heading down -6.56% so far today. When it comes to biotech companies, there are a number of factors that have the potential to lead to declines in the market. News is one of the most common reasons for movement. Here are the most recent trending headlines centered around GALT:

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Mar-22-19 10:19AM Providence Cancer Institute to Present Findings on GR-MD-02 at the 2019 Keystone Symposia on Molecular and Cellular Biology
Mar-06-19 11:34AM Investors Who Bought Galectin Therapeutics Shares Three Years Ago Are Now Up 248%
08:03AM Galectin Therapeutics Releases Richard E. Uihleins Open Letter to Stockholders
08:02AM Galectin Therapeutics Files Registration Statement for Stockholder Rights Offering of Common Stock and Warrants
08:00AM Galectin Therapeutics Reports Fiscal 2018 Financial Results and Provides Business Update

However, when making an investing decision, investors should take a look at much more than just news, this is especially the case in the speculative biotechnology industry. Here’s what’s happening with Galectin Therapeutics, Inc..

Trends That We’ve Seen From GALT

While a decline in a single session, like what we’re seeing from Galectin Therapeutics, Inc. may cause fear in some investors, that alone shouldn’t be the basis of a decision to, or not to, invest in a company. It is generally a good idea to take a look at trends experienced by the stock beyond a single session. When it comes to GALT, here are the returns on investment that investors have seen:

  • Weekly – Over the last 5 trading sessions, GALT has produced a change in value amounting to -2.98%.
  • Past 30 Days – The return from Galectin Therapeutics, Inc. over the last month comes to -24.25%.
  • Past 3 Months – Throughout the past 3 months, the company has generated a return of -3.59%
  • Past Six Months – Over the last six months, we’ve seen a performance of -24.63% from the company.
  • This Year So Far – Since the the first trading session of this year GALT has generated a ROI of 32.94%.
  • Annually – Finally, in the last full year, we have seen a change of -1.51% out of GALT. Over this period, the stock has sold at a high price of -51.95% and a low price of 47.10%.

Key Ratios

Digging into a few key ratios associated with a company can provide traders a look of just how risky and/or potentially profitable a stock pick may be. Here are some of the most important ratios to consider when looking at GALT.

Short Ratio – The short ratio is a measure of short interest. As the short ratio heads up, it means that more investors are expecting that the stock is going to fall. Across the sector, biotech stocks can have a higher short ratio. However, we also see a lot of short squeezes in the industry. Nonetheless, with regard to Galectin Therapeutics, Inc., it’s short ratio amounts to 11.61.

Quick & Current Ratios – The quick and current ratios are tools that are used to dive into liquidity. Basically, they measure If a company is able to pay its debts when they mature using quick assets or current assets. Because many biotech many companies rely on continued investor support, the current and quick ratios can seem upsetting. However, several better companies in the biotechnology sector do have positive quick and current ratios. When it comes to GALT, the quick and current ratios come to 4.20 and 4.20 respectively.  

Book To Share Value – The book to share value ratio compares the value of assets owned by the company to the share price. In this case, the book to share value ratio works out to -0.05.

Cash To Share Value – Finally, 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 interested in a biotechnology stock, this is a very important ratio to think about. In this case, the cash to share value ratio is 0.18.

Analyst Opinions With Regard To Galectin Therapeutics, Inc.

Although it’s never a smart idea to avoid doing your DD and blindly following the opinions of analysts, it is a good idea to use their opinions when validating your own due diligence when it comes to making investment decisions in the biotechnology sector. Here are the recent moves that we’ve seen from analysts as it relates to GALT.

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Feb-13-19 Initiated B. Riley FBR Buy $11
Dec-07-17 Reiterated H.C. Wainwright Buy $6 → $10
Nov-28-17 Reiterated H.C. Wainwright Buy $3.50 → $6
Oct-19-17 Initiated ROTH Capital Buy
Mar-30-17 Upgrade H.C. Wainwright Neutral → Buy $3.50

Investors Tend To Follow The Big Money

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 GALT, here’s what we’re seeing:

Institutions own 12.70% of the company. Institutional interest has moved by -3.60% over the past three months. When it comes to insiders, those who are close to the company currently own 6.30% percent of GALT shares. Institutions have seen ownership changes of an accumulative 0.20% over the last three months.

Looking At Share Counts

Investors tend to have a heavy interest in the total numbers of shares both outstanding and available. In terms of Galectin Therapeutics, Inc., there are currently 45.36M with a float of 37.88M. These data mean that out of the total of 45.36M shares of GALT that are out there today, 37.88M are available to trade hands on the public market.

I also find it important to pay attention to the short float. After all, if a high portion of the float is sold short, the overall opinion among traders is that the stock is headed for a deep dive. When it comes to GALT, the percentage of the float that is shorted currently sits at 10.39%. Most traders believe that a concerning short percent of the float is any percentage over 40%. However, I have seen that anything over 26% is usually a risky play.

What We’ve Seen In earnings results

What have ween seen from GALT in terms of financial results?Here’s what we’ve seen:

  • Analyst Expectations – At the moment, Wall Street analysts expect that GALT will come up with earnings per diluted share that comes to -0.55, with -0.14 being reported in the next financial report. Although this information is not earnings driven, because we’re chatting on the topic of Wall Street analysts, GALT is currently rated a 2.00 on a scale from 1 to 5 where 1 is the poorest Wall St. analyst rating and 5 is the best possible rating.
  • 5-Year Sales – Over the past half decade, Galectin Therapeutics, Inc. has generated a change in sales that adds up to 0. Earnings per diluted share over the period have experienced movement in the amount of 0.
  • Q/Q – when it comes to quarter over quarter earnings performance, or Q/Q data as it is often explained in the world of humans, GALT has seen a change in earnings in the amount of 0. GALT has also seen a change in regard to revenue in the amount of 0.

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