Sorrento Therapeutics, Inc. (SRNE) Stock: A Strong Pick In The Biotechnology Space?

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Sorrento Therapeutics, Inc. (SRNE) is headed up in the market today. The company, focused on the biotech industry, is currently priced at $5.94 after a move up of 13.58% so far in today’s session. When it comes to biotechnology stocks, there are a number of factors that have the ability to lead to movement in the market. One of the most common is news. Here are the recent trending headlines associated with SRNE:

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Mar-22-19 01:06PM Sorrento Therapeutics News: Why SRNE Stock Is On The Move
07:00AM Sorrento Therapeutics Announces the Merger of Scilex and Semnur to Create a Global Leader in Non-Opioid Pain Management
Mar-11-19 07:00AM Yuhan Corp and Sorrento Therapeutics Announce Completion of Phase 1 Clinical Study of Anti-PD-L1 Antibody IMC-001
Feb-25-19 07:00AM Sorrento Therapeutics to Present Corporate Update at Two Investor Conferences
Feb-12-19 07:00AM Yuhan Corp and Sorrento Therapeutics Announce Closing of a $40m USD Financing for Joint Venture ImmuneOncia to Support Advancement of Immuno-Oncology Program

Nonetheless, when making a decision to invest, prospective investors should look at far more than news, this is especially the case in the generally speculative biotechnology industry. Here’s what’s happing when it comes to Sorrento Therapeutics, Inc..

Recent Movement Out of SRNE

Although a move up on a single session, like the gain that we’re seeing from Sorrento Therapeutics, Inc. might make some investors happy, that by itself 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 experienced by the stock just a single trading day. When it comes to SRNE, below are the returns that investors have experienced:

  • Weekly – Throughout the past 5 trading sessions, SRNE has generated a change in price amounting to 154.94%.
  • Past 30 Days – The ROI from Sorrento Therapeutics, Inc. in the past 30 days comes to 182.86%.
  • Past Three Months – Over the past 3 months, the company has generated a return that comes to 165.18%
  • Past 6 Months – Throughout the previous 6 months, we have seen a change that works out to 30.55% from the company.
  • This Year So Far – Since the open of this year SRNE has produced a return of 147.50%.
  • Annually – Lastly, over the last year, investors have seen performance that comes to -26.67% from SRNE. Throughout this period, the stock has traded at a high price of -28.00% and a low price of 230.00%.

Ratios To Watch

Digging into a few key ratios having to do with a stock can provide prospective traders an understanding of just how risky and/or rewarding a stock pick might be. Below are a few of the important ratios to consider when digging into SRNE.

Short Ratio – The short ratio is a measure of short interest. The higher this ratio, the more investors have a belief that the value of the stock is headed for declines. Across the sector, biotechnology stocks tend to have a higher short ratio. However, we also see quite a few short squeezes in the sector. Nonetheless, as it relates to Sorrento Therapeutics, Inc., the stock’s short ratio amounts to 9.04.

Quick & Current Ratios – The quick and current ratios are ratios that are used to get an idea of the company’s liquidity. Essentially, they measure the company’s abilities to pay its debts when they come due based on quick assets or current assets. Because many biotech many companies are heavily reliant on continued investor support, the quick and current ratios can look bad. However, several gems in the biotech sector do have positive quick and current ratios. In terms of SRNE, the quick and current ratios add up to 2.90 and 2.90 respectively.  

Book To Share Value – The book to share value ratio compares the the share price to the book value of assets owned by the company. when it comes to Sorrento Therapeutics, Inc., that ratio equates to 1.72.

Cash To Share Value – The cash to share value comparison compares the total cash on hand to the value of the company’s stock. Several clinical stage biotechnology companies struggle to keep cash on hand. So, if you’re interested in a biotech stock, this is a very important ratio to look into. When it comes to SRNE, the cash to share value works out to 1.25.

What Analysts Say About Sorrento Therapeutics, Inc.

While it’s never a smart idea to blindly follow the thoughts of analysts, it is a good idea to use their thoughts when validating your own due diligence when it comes to making an investment decision in the biotech sector. Below you’ll find the recent moves that we have seen from analysts with regard to SRNE.

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Jun-28-18 Initiated B. Riley FBR, Inc. Buy $14.25
Jan-16-18 Reiterated H.C. Wainwright Buy $20 → $30
May-22-17 Reiterated Rodman & Renshaw Buy $30 → $20
May-22-17 Reiterated FBR & Co. Outperform $13 → $9
Oct-03-16 Initiated ROTH Capital Buy

Moves From Big Money Players

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 SRNE, here’s what we’re seeing:

Institutions own 25.90% of the company. Institutional interest has moved by -5.68% over the past three months. When it comes to insiders, those who are close to the company currently own 29.37% percent of SRNE shares. Institutions have seen ownership changes of an accumulative 0.00% over the last three months.

What’s The Float Looking Like?

Traders and investors tend to like to know the total numbers of shares both available and outstanding. With respect to Sorrento Therapeutics, Inc., there are currently 127.51M and there is a float of 86.36M. This means that out of the total of 127.51M shares of SRNE that are out there today, 86.36M are able to be traded on the market.

It’s also important to follow the short float. Think about it, if a high percentage of the float available for trading is shorted, the overall feeling among investors is that the equity is going to fall. With regard to SRNE, the percentage of the float that is sold short comes to a total of 21.81%. Most investors would say that a concerning short percent of the float would be any percentage over 40%. Nonetheless, I’ve found that any short ratio over 26% is probably going to be a play that comes with hefty risk.

Earnings

What have ween seen from SRNE in terms of financial results?Here’s what you’re looking for:

  • Analyst Expectations – Currently, analysts are expecting that Sorrento Therapeutics, Inc. will come up with EPS that comes to -0.61, with -0.24 to be announced in the earnings announcement for the current quarter. Although this information is not associated with earnings, since we are chatting about Wall Street analysts, Sorrento Therapeutics, Inc. is presently rated a 0 when rated on a scale from 1 to 5 on which 1 is the worst possible analyst rating and 5 is the best possible.
  • 5-Year Sales – In the last 5 years, Sorrento Therapeutics, Inc. has announced a change in sales in the amount of 115.10%. Earnings per share through the period have generated movement in the amount of 0.
  • Quarter Over Quarter – In terms of quarter over quarter earnings performance, or Q/Q data as it is commonly referred to as in the human world, Sorrento Therapeutics, Inc. has experienced a change in earnings that comes to a total of 0. Sorrento Therapeutics, Inc. has also seen a change with regard to sales that totals -66.20%.

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