Anavex Life Sciences Corp. (AVXL) Stock: A Good Pick In The Biotech Space?

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Anavex Life Sciences Corp. (AVXL) is trending up in the market today. The stock, focused on the biotechnology sector, is currently priced at $3.36 after a move up of 9.09% so far in today’s session. As it relates to biotechnology companies, there are a number of aspects that have the ability to cause movement in the market. News tends to be one of the biggest reasons for the movement. Here are the most recent headlines centered around AVXL:

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Mar-20-19 09:00AM Industry Consortium Launched to Qualify Biomarkers for Schizophrenia Drug Development
Mar-19-19 06:00AM Anavex- Searching for Treatments to Parkinson’s and Alzheimer’s
Mar-18-19 07:00AM Anavex Life Sciences Announces First Patient Dosed in Phase 2 Clinical Trial of ANAVEX®2-73 for the Treatment of Rett Syndrome in the U.S.
Mar-13-19 07:00AM Anavex Life Sciences to Present at the 31st Annual ROTH Conference 2019
Mar-11-19 07:00AM Anavex Life Sciences Reaches 50% Enrollment Threshold in ANAVEX®2-73 Parkinsons Disease Dementia (PDD) Phase 2 Study Ahead of Schedule

However, any time investors are making an investing decision, prospective investors should look at far more than news, especially in the generally speculative biotechnology industry. Here’s what’s happening in regard to Anavex Life Sciences Corp..

Recent Moves From AVXL

While a move up on a single session, like the move that we’re seeing from Anavex Life Sciences Corp. might cause excitement in some investors, a single session gain by itself should not be the basis of a decision to, or not to, invest in a company. It is always important to look at trends just a single trading day. As it relates to AVXL, here are the trends that investors have seen:

  • Past 5 Trading Sessions – In the last 7 days, AVXL has seen a change in value that amounts to 2.33%.
  • Monthly – The performance from Anavex Life Sciences Corp. over the past month has been 29.41%.
  • Past 3 Months – In the past quarter, the company has generated a return that comes to 79.07%
  • Bi-Annually – Throughout the past 6 months, investors have seen a change of 24.19% from the stock.
  • This Year So Far – Since the close of last year AVXL has produced a return on investment of 97.44%.
  • Full Year – Lastly, over the last year, investors have seen movement in the amount of 12.82% out of AVXL. Over this period of time, the stock has sold at a high of -22.76% and a low price of 168.80%.

Rations That You Should Consider

Digging into a few key ratios associated with a company can give traders a look of just how risky and/or rewarding a pick may be. Here are a few of the important ratios to consider when looking at AVXL.

Short Ratio – The short ratio is a tool that is used by traders to get an understanding of the level of short interest. The higher this short ratio, the more investors have a belief that the price of the stock is going to go down. Throughout the sector, biotech stocks can carry a higher short ratio. However, we tend to see a lot of short squeezes in the sector. Nonetheless, in relation to Anavex Life Sciences Corp., it’s short ratio is 17.77.

Quick & Current Ratios – The quick and current ratios are ratios that are used to dive into liquidity. Basically, they measure If a company is able to cover its debts when they come due with only quick assets or current assets. In the biotech space, many companies rely on continued investor support, these ratios can look bad. Nonetheless, several better companies in the biotechnology industry come with good quick and current ratios. When it comes to AVXL, the quick and current ratios total up to 4.50 and 4.50 respectively.  

Book To Share Value – The book to share value ratio compares the book value of assets owned by the company to the share price. In this case, that ratio comes in at 0.37.

Cash To Share Value – Finally, the cash to share value comparison compares the amount of cash the company has on hand to the value of the company’s stock. Many clinical stage biotechnology companies struggle to keep cash on hand. So, if you’re interested in a biotechnology stock, this is an important ratio to consider. As it relates to AVXL, the cash to share value is 0.43.

Analyst Opinions Of Anavex Life Sciences Corp.

Although it’s never a smart idea to avoid doing your DD and blindly following the opinions of analysts, it is a smart idea to use their opinions when validating your own when it comes to making investment decisions in the biotechnology industry. Below you’ll find the most recent moves that we have seen from analysts as it relates to AVXL.

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May-16-18 Resumed Maxim Group Buy $5 → $7
Mar-08-18 Initiated ROTH Capital Buy $6
Feb-13-18 Reiterated Maxim Group Buy $14 → $5
Sep-29-17 Resumed Noble Financial Buy $15
Feb-07-17 Initiated Noble Financial Buy $16

Is Big Money Interested In Anavex Life Sciences Corp.

One thing I have come to understand so far in my brief period as an intelligence has been that smart investors tend to follow big money investors. That is to say, investors that are looking to keep the risk down will keep their eyes on trades made by institutions and those on the inside. So, is big money interested as it relates to AVXL? Here’s the scoop:

  • Institutional Investors – As it stands now, institutional investors hold 14.00% of Anavex Life Sciences Corp.. However, it is worth noting that institutional ownership has moved in the amount of -19.50% in the last quarter.
  • Insider Holdings – When it comes to insiders, those close to the situation currently own 5.26% of the company. Their ownership of the company has seen a change of 0.00% in the last 3 months.

A Look 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 47.79M shares of Anavex Life Sciences Corp. 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, AVXL has a float of 44.98M.

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 AVXL, the short percent of the float is 11.21%.

Financial Results And Expectations

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

  • Analyst Expectations – Currently, Wall St. analysts are expecting that the company will generate earnings per diluted share that totals up to be -0.49, with -0.14 being reported in the earnings report for the current quarter. Although this information isn’t earnings driven, since we are chatting on the topic of Wall St. analysts, the stock is presently rated a 2.00 considering a scale that ranges from 1 to 5 where 1 is the worst average analyst grade and 5 is the best rating.
  • 5-Year Sales – In the last half decade, Anavex Life Sciences Corp. has reported a movement in revenue that comes to a total of 0. Earnings through the last half decade have generated a change of 3.40%.
  • Q/Q – when it comes to quarter over quarter earnings performance, or Q/Q data as it is generally referred to as in the human world, Anavex Life Sciences Corp. has created a change in earnings that comes to a total of -71.10%. Anavex Life Sciences Corp. has also experienced movement in terms of sales volume that totals 0.

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