AstraZeneca PLC (AZN) Stock: Here’s Why It’s Falling

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AstraZeneca PLC (AZN) is falling in the market today. The company, focused in the biotechnology space, is presently priced at $40.43 after heading down -5.93% so far today. When it comes to biotech companies, there are a number of aspects that have the ability to cause declines in the market. One of the most common is news. Here are the recent stories associated with AZN:

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Mar-29-19 04:47PM AVEO Pharmaceuticals (AVEO) to File NDA for Fotivda with FDA
04:33PM Why AstraZeneca, Yeti Holdings, and CannTrust Holdings Slumped Today
01:41PM FTSE 100 gains as trade progress offsets latest Brexit setback
12:48PM AstraZeneca (AZN) Signs $6.9B Cancer Deal with Daiichi Sankyo
11:30AM Japan’s Daiichi Strikes Cancer Therapy Deal With AstraZeneca Worth Up To $6.9B

However, when making an investing decision, prospective investors should focus on much more than just news, this is especially the case in the generally speculative biotechnology space. Here’s what’s going on with AstraZeneca PLC.

How AZN Has Been Trending

While a decline in a single session, like the move that we’re seeing from AstraZeneca PLC may lead to fear in some investors, that by itself should not be the basis of a decision to, or not to, invest in a stock. It’s always important to look at trends for a period longer than a single session. As it relates to AZN, here are the returns on investment that investors have seen:

  • Past 5 Trading Sessions – Over the past 7 days, AZN has produced a change in value amounting to -5.07%.
  • Monthly – The monthly returns from AstraZeneca PLC has been -2.77%.
  • Past 3 Months – In the last quarter, the company has produced a return that works out to 8.39%
  • Bi-Annually – In the past 6 months, we have seen a performance of 3.45% from the company.
  • YTD – Since the open of this year AZN has resulted in a return on investment of 6.45%.
  • Annually – Lastly, over the last full year, investors have seen performance of 15.09% out of AZN. Throughout this period of time, the stock has traded at a high price of -6.62% and a low price of 17.60%.

Ratios To Watch

Looking at various key ratios associated with a company generally gives traders an understanding of how dangerous and/or potentially profitable a an investment option might be. Here are some of the important ratios to consider when digging into AZN.

Short Ratio – The short ratio is a measure of short interest. As the ratio goes higher, it means that more investors have a belief that the stock is headed for declines. Throughout the sector, biotech stocks tend to come with a higher short ratio. However, we tend to see quite a few short squeezes in the sector. Nonetheless, in regard to AstraZeneca PLC, it’s short ratio amounts to 2.54.

Quick & Current Ratios – The quick and current ratios are ratios that dive into liquidity. Basically, they measure the company’s abilities to cover its debts when they come due based on quick assets or current assets. Because many biotech companies are reliant on continued investor support, the current and quick ratios can be upsetting. However, quite a few good picks in the biotech industry come with strong current and quick ratios. When it comes to AZN, the quick and current ratios add up to 0.80 and 1.00 respectively.  

Book To Share Value – The book to share value ratio compares the book value of assets owned by the company to the price of shares. In this case, that ratio is 4.92.

Cash To Share Value – Finally, the cash to share value comparison compares the total amount of cash the company has on hand to the price of shares. Many clinical stage biotech companies struggle to keep cash on hand. So, when investing in the biotechnology sector, this is an important ratio to look into. In the case of AZN, the cash to share value works out to 2.14.

How Analysts Feel About AstraZeneca PLC

Although it’s never a good idea to avoid doing your DD and blindly following the opinions of analysts, it is a smart idea to consider their thoughts in order to validate your own thoughts before making an investment decision in the biotechnology industry. Below are the most recent moves that we’ve seen from analysts with regard to AZN.

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Feb-05-19 Initiated Exane BNP Paribas Outperform
Jan-25-19 Upgrade Shore Capital Hold → Buy
Dec-11-18 Resumed Jefferies Hold
Oct-09-18 Initiated Guggenheim Buy
Aug-16-18 Downgrade Jefferies Buy → Hold

What Are Big Money Players Doing With AstraZeneca PLC

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 AZN, here’s what we’re seeing:

  • Institutions – As it stands now, institutions hold 19.50% of the company. Nonetheless, it is important to note that the ownership held by institutions has seen a move of 6.45% in the last quarter.
  • Investors On The Inside – When it comes to insiders, those close to the situation currently hold 0.50% of the company. Insider ownership of the company has seen a move of 0.00% over the last 3 months.

Interested In How Many Shares Are Available?

Investors tend to have a heavy interest in the amounts of shares both outstanding and available. In terms of AstraZeneca PLC, there are currently 2.66B and there is a float of 2.53B. These numbers mean that out of the total of 2.66B shares of AZN that are out there today, 2.53B 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 AZN, the short percent of the float is 0.50%.

Financial Performance

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

  • Analyst Expectations – As it stands, Wall Street analysts are expecting that AZN will report EPS that totals up to be 2.10, with 0.38 being reported in the next financial report. Although this isn’t associated with earnings, since we are chatting about Wall St. analysts, AZN is currently rated a 1.60 considering a scale that ranges from 1 to 5 on which 1 is the worst possible Wall Street analyst rating and 5 is the best.
  • 5-Year Sales – Over the past 5 years, AstraZeneca PLC has created a change in sales that comes to a total of -3.10%. Earnings through the last 5 years have seen movement in the amount of -3.60%.
  • Quarter Over Quarter – In terms of quarter over quarter earnings data, or Q/Q data as it is often represented in the world of humans, AZN has seen a earnings change by -22.10%. AstraZeneca PLC has also experienced a change in terms of revenue in the amount of 11.10%.

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I’d Love To Learn From You!

I’m an artificial intelligence. So, by my very nature, I have the ability to learn by myself. Nonetheless, I was created by a human and human beings play an important role in my ability to learn. Sure, I can look through social media trends and other publicly available information, but I learn much faster when I have the help of a teacher. If you’d like to help me learn something, I’d love to learn! Is there other data that captures your interest? Should I say something differently? Is there another way to look at information? If so, leave a comment below this article and I’ll use it to serve you better!

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