Dermira, Inc. (DERM) Stock: Is This Biotech Stock Worth Your Time?

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Dermira, Inc. (DERM) is trending down in the market in today’s trading session. The stock, one that is focused on the biotech industry, is currently priced at $11.67 after heading down -8.54% so far today. When it comes to biotechnology stocks, there are quite a few aspects that have the potential to lead to declines in the market. News is one of the most common reasons for movement. Here are the recent stories surrounding DERM:

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Apr-08-19 05:06PM Here’s Why Dermira Shot Up 62% in March
Apr-03-19 04:05PM Dermira to Present at the 18th Annual Needham Healthcare Conference
Apr-01-19 02:09PM Does The Dermira, Inc. (NASDAQ:DERM) Share Price Fall With The Market?
Mar-25-19 12:00AM Dermira Announces Life Unfolds Direct-to-Consumer Campaign to Highlight QBREXZA (glycopyrronium) Cloth
Mar-22-19 04:01PM Dermira Announces Closing of Public Offering of Common Stock and Full Exercise of Underwriters Option to Purchase Additional Shares

Nonetheless, any time investors are making an investing decision, prospective investors should look at much more than news, especially in the highly speculative biotech space. Here’s what’s happing when it comes to Dermira, Inc..

Recent Movement From DERM

Although a decline in a single session, like the move that we’re seeing from Dermira, Inc. may cause fear in some investors, that by itself shouldn’t be the reason for a decision to, or not to, invest in a stock. It is generally smart to take a look at trends further out than a single trading session. As it relates to DERM, here are the trends that we’ve seen:

  • Past 7 Days – Throughout the last 5 trading sessions, DERM has seen a change in value amounting to -19.85%.
  • Monthly – The monthly performance from Dermira, Inc. has been 68.89%.
  • Past 3 Months – In the last three months, the company has generated a return on investment that comes to 57.28%
  • Past 6 Months – Throughout the previous six months, investors have seen a change that works out to 0.60% from the stock.
  • This Year So Far – Since the open of this year DERM has resulted in a ROI of 62.31%.
  • Full Year – Finally, throughout the past full year, investors have seen performance that works out to 45.88% out of DERM. Over this period of time, the stock has traded at a high price of -24.61% and a low price of 94.52%.

Ratios Of Note

Digging into a few key ratios associated with a company can provide investors a view of how dangerous and/or rewarding a pick might be. Below are a few of the important ratios to think about when digging into DERM.

Short Ratio – The short ratio is a measure of short interest. As the ratio goes higher, it means that more investors are expecting that the stock is headed for declines. In general, biotechnology stocks tend to have a higher short ratio. On the other hand, we tend to see quite a few short squeezes in the space. Nonetheless, when it comes to Dermira, Inc., it’s short ratio comes to 2.18.

Quick & Current Ratios – The quick and current ratios are tools that are used to measure liquidity. Basically, they measure the company’s abilities to pay for its debts as they mature based on current assets or quick assets. Because many biotech several companies are reliant on continued support from investors, the current and quick ratios can look damning. However, several good picks in the biotech industry come with positive current and quick ratios. As far as DERM, the quick and current ratios come to 8.50 and 8.70 respectively.  

Book To Share Value – The book to share value ratio compares the the price of shares to the book value of assets owned by the company. In this particular case, the book to share value ratio is -0.21.

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 shares. Several early stage biotechnology companies have a hard time keeping cash on hand. So, if you’re considering an investment in a stock in the biotech sector, this is a very important ratio to look into. In this case, the cash to share value is 6.52.

Analyst Opinions With Regard To Dermira, Inc.

While it’s not a smart idea to avoid doing your due diligence and blindly following the opinions of analysts, it is a good idea to use their thoughts in order to validate your own when it comes to making an investment decision in the biotech industry. Here are the recent moves that we’ve seen from analysts with regard to DERM.

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Mar-25-19 Reiterated Needham Buy $16 → $22
Feb-22-19 Initiated SVB Leerink Outperform $20
Feb-14-19 Initiated H.C. Wainwright Buy $13
Jan-17-19 Upgrade Raymond James Underperform → Mkt Perform
Nov-20-18 Resumed Guggenheim Buy $20

What Are Big Money Players Doing With Dermira, Inc.

One thing I’ve come to understand in my brief time here is that smart money tends to follow big money players. In other words, investors that want to keep the risk down will keep an eye on trades made by institutions as well as those on the inside. With that said, is big money interested when it comes to DERM? Here’s what’s going on:

  • Institutional Investors – Currently, institutions hold 72.90% of Dermira, Inc.. However, it is worth noting that the ownership held by institutions has seen a move in the amount of -0.09% over the last quarter.
  • Insiders – When it comes to insiders, those close to the situation currently hold 0.30% of the company. Insider ownership of the company has seen a move of -21.30% over the last quarter.

A Look At Share Counts

Investors tend to like to know the amounts of shares both available and outstanding. In terms of Dermira, Inc., currently there are 48.02M with a float of 48.02M. These data mean that out of the total of 48.02M shares of DERM currently in existence today, 48.02M are available to trade hands by the public.

I also find it important to look at the short percent. After all, when a large portion of the float is sold short, the overall feeling among investors is that the stock is headed for a steep decline. As far as DERM, the percentage of the float that is shorted currently sits at 9.36%. Most investors would say that a concerning short percent of the float is considered to be anything over 40%. In my research, I have seen that a short ratio over 26% is likely a risky play.

Financial Results And Expectations

What have ween seen from DERM in terms of financial results?Here’s the information:

  • Analyst Expectations – As it stands, analysts have expectations that DERM will generate EPS of -4.76, with -1.48 being reported in the report for the current quarter. Although this data is not earnings driven, since we are chatting about Wall St. analysts, the stock is presently graded as a 1.90 on a scale from 1 to 5 where 1 is the worst possible Wall Street analyst rating and 5 is the best.
  • 5-Year Sales – Over the last half decade, Dermira, Inc. has created a change in sales volume that comes to a total of 0. Earnings in the past half decade have seen movement in the amount of -39.30%.
  • Q/Q – when it comes to quarter over quarter earnings performance, or Q/Q data as it is generally explained in the human world, the company has seen a change in earnings in the amount of -26.80%. DERM has also experienced movement with regard to sales that amounts to 69.20%.

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