Viking Therapeutics, Inc. (VKTX) Stock: Why It’s Falling In Value


Viking Therapeutics, Inc. (VKTX) is headed down in the market today. The company, one that is focused on the biotechnology space, is currently trading at $8.26 after tumbling -10.99% so far in today’s session. As it relates to biotechnology companies, there are quite a few aspects that have the ability to cause declines in the market. One of the most common is news. Here are the recent stories centered around VKTX:

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Mar-22-19 11:39AM Harry Boxer: 3 biotech stocks with momentum
Mar-19-19 01:56AM Edited Transcript of VKTX earnings conference call or presentation 13-Mar-19 8:30pm GMT
Mar-14-19 04:20PM VKTX: Phase 2b Trial for VK2809 to Initiate 2H19
02:31AM Viking Therapeutics (VKTX) Q4 2018 Earnings Conference Call Transcript
Mar-13-19 04:05PM Viking Therapeutics Reports Fourth Quarter and Year-End 2018 Financial Results and Provides Corporate Update

However, when making an investing decision, investors should look into much more than just news, this is especially the case in the highly speculative biotechnology space. Here’s what’s happening in regard to Viking Therapeutics, Inc..

Trends That We’ve Seen From VKTX

Although a move down on a single session, like the fall that we’re seeing from Viking Therapeutics, Inc. may cause fear in some investors, a single session move by itself shouldn’t be the basis of a decision to, or not to, invest in a stock. It’s always smart to look into trends experienced by the stock further out than a single trading session. When it comes to VKTX, below are the movements that investors have seen:

  • Past 5 Sessions – In the past week, VKTX has generated a change in value that amounts to 5.09%.
  • Past 30 Days – The performance from Viking Therapeutics, Inc. throughout the past month has been -3.95%.
  • Past Three Months – Throughout the last three months, the company has produced a ROI that comes to 2.74%
  • Past 6 Months – Throughout the previous six months, we’ve seen a performance that amounts to -57.96% from the company.
  • This Year So Far – Since the open of this year VKTX has generated a ROI of 7.97%.
  • Full Year – Lastly, in the past year, we have seen performance that works out to 54.97% out of VKTX. In this period of time, the stock has traded at a high price of -65.58% and a low price of 123.85%.

Crucial Ratios

Looking at a few ratios associated with a company can provide investors an understanding of how risky and/or potentially profitable a an investment option might be. Here are some of the most important ratios to think about when looking at VKTX.

Short Ratio – The short ratio is a measure of short interest. The higher this ratio, the more investors are expecting that the price of the stock is headed for declines. In general, biotech stocks tend to have a higher short ratio. However, we tend to see quite a few short squeezes in the space. Nonetheless, as it relates to Viking Therapeutics, Inc., the stock’s short ratio clocks in at 9.76.

Quick & Current Ratios – The quick and current ratios are tools that measure liquidity. Basically, they measure the company’s abilities to pay its debts when they come due based on quick assets or current assets. In the biotechnology space, several companies rely on the continuation of investor support, the quick and current ratios can be upsetting. Nonetheless, quite a few good picks in the biotech sector come with strong current and quick ratios. When it comes to VKTX, the quick and current ratios total up to 66.40 and 66.40 respectively.  

Book To Share Value – The book to share value ratio compares the value of assets currently owned by the company to the share price of the stock. as it relates to Viking Therapeutics, Inc., that ratio is 4.16.

Cash To Share Value – Finally, the cash to share value ratio compares the total cash on hand to the price of shares. Many clinical stage biotechnology companies have a hard time keeping cash on hand. So, if you’re interested in a biotech stock, this is a very important ratio to consider. In this case, the cash to share value comes to 4.30.

What Analysts Say About Viking Therapeutics, Inc.

While it’s rarely a good idea to avoid doing your DD and blindly following the opinions of analysts, it is a smart idea to use their thoughts when validating your own opinions when it comes to making investment decisions in the biotech industry. Here are the most recent moves that we’ve seen from analysts when it comes to VKTX.

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Mar-14-19 Reiterated Maxim Group Buy $28 → $20
Feb-22-19 Initiated SVB Leerink Mkt Perform
Dec-12-18 Initiated B. Riley FBR Buy $16
Nov-19-18 Upgrade Raymond James Outperform → Strong Buy
Sep-18-18 Reiterated Raymond James Outperform $15 → $43

Is Big Money Interested in Viking Therapeutics, Inc.?

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 VKTX, here’s what we’re seeing:

Institutions own 68.00% of the company. Institutional interest has moved by 9.89% over the past three months. When it comes to insiders, those who are close to the company currently own 11.00% percent of VKTX shares. Institutions have seen ownership changes of an accumulative -3.29% over the last three months.

A Look At Share Counts

Investors seem to be interested in the amounts of shares both outstanding and available. With respect to Viking Therapeutics, Inc., there are currently 70.19M with a float of 63.01M. This means that of the total of 70.19M shares of VKTX currently in existence today, 63.01M are able to be traded in the public space.

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 VKTX, the short percent of the float is 45.84%.

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 $-0.61. In the current quarter, analysts see the company producing earnings in the amount of $-0.08. Over the last 5 years, VKTX has generated revenue in the amount of $0 with earnings coming in at 0. On a quarter over quarter basis, earnings have seen movement of 46.30% and revenue has seen movement of 0.

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