Exelixis, Inc. (EXEL) Stock: A Strong Pick In The Biotechnology Sector?

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Exelixis, Inc. (EXEL) is making a move down in the market today. The stock, focused in the biotechnology sector, is presently priced at $21.47 after tumbling -6.04% so far today. In terms of biotech companies, there are quite a few factors that have the ability to lead to declines in the market. News tends to be one of the biggest reasons for the movement. Here are the recent headlines relating to EXEL:

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Apr-16-19 07:26PM ProQR Initiates Dosing in Phase II/III Eye Disorder Study
Apr-15-19 02:18PM Has Exelixis, Inc. (NASDAQ:EXEL) Got Enough Cash?
Apr-11-19 06:33AM Risk-Tolerant Investors, Turn Your Eyes to Exelixis Stock
Apr-05-19 10:03PM Exelixis (EXEL) Rallies 22.4% YTD: What to Expect Ahead?
04:05PM Exelixis to Present at the 18th Annual Needham Healthcare Conference on April 10, 2019

However, when making a decision with regard to investing, investors should look at much more than just news, especially in the highly speculative biotechnology industry. Here’s what’s happening with Exelixis, Inc..

The Performance That We’ve Seen From EXEL

While a single session decline, like the fall that we’re seeing from Exelixis, Inc. may cause fear in some investors, a single session decline by itself should not be the reason for a decision to, or not to, invest in a stock. It is generally smart to dig into trends for a period longer than a single session. In the case of EXEL, here are the returns that we have seen:

  • Past 5 Sessions – Throughout the past five trading sessions, EXEL has generated a price change that amounts to -4.91%.
  • Monthly – The return on investment from Exelixis, Inc. in the past 30 days has been -5.34%.
  • Past Quarter – In the last quarter, the company has produced a return on investment that comes to -4.99%
  • Bi-Annually – Over the last 6 months, we’ve seen a performance that works out to 40.70% from the stock.
  • Year To Date – Since the the first trading session of this year EXEL has produced a return on investment of 16.17%.
  • Annually – Finally, over the past year, investors have seen movement amounting to 12.01% from EXEL. Over this period of time, the stock has sold at a high of -15.17% and a low of 59.99%.

Notable Ratios

Looking at a few key ratios having to do with a company can give traders a look of how risky and/or potentially profitable a an investment option may be. Below are some of the key ratios to look at when looking at EXEL.

Short Ratio – The short ratio is a measure of short interest. The higher this short ratio, the more investors are expecting that the stock is headed for declines. In general, biotechnology stocks tend to have a higher short ratio. However, we tend to see quite a few short squeezes in the industry. Nonetheless, with regard to Exelixis, Inc., it’s short ratio is 5.10.

Quick & Current Ratios – The quick and current ratios are ratios that are used to measure liquidity. Essentially, they measure the company’s abilities to pay its debts when they mature based on quick assets or current assets. In the biotech space, several companies are reliant on continued investor support, the current and quick ratios can look upsetting. However, some better companies in the biotechnology industry do have great current and quick ratios. In terms of EXEL, the quick and current ratios total up to 8.40 and 8.50 respectively.  

Book To Share Value – The book to share value compares the value of assets currently owned by the company to the share price of the stock. when it comes to Exelixis, Inc., the book to share value ratio comes in at 4.31.

Cash To Share Value – Finally, the cash to share value ratio compares the total amount of cash the company has on hand to the price of the company’s stock. Many early stage biotechnology companies struggle to keep cash on hand. So, if you’re considering an investment in a stock in the biotech space, this is a very important ratio to consider. In terms of EXEL, the cash to share value works out to 2.36.

What Analysts Think About Exelixis, Inc.

Although it’s never a smart idea to avoid doing your DD and blindly following the opinions of analysts, it is a good idea to consider their thoughts to validate your own thoughts when it comes to making an investment decision in the biotech space. Here are the most recent moves that we have seen from analysts when it comes to EXEL.

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Mar-18-19 Upgrade Morgan Stanley Underweight → Equal-Weight
Sep-17-18 Initiated Goldman Neutral $22
Sep-10-18 Initiated Morgan Stanley Underweight $19
May-11-18 Reiterated Needham Buy $33 → $30
Oct-17-17 Reiterated RBC Capital Mkts Outperform $33 → $39

Is Big Money Interested In Exelixis, 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 EXEL, here’s what we’re seeing:

  • Institutions – Currently, institutional investors hold 77.40% of EXEL. On the other hand, it’s important to consider that institutional ownership has seen a move in the amount of -0.26% in the past 3 months.
  • Insider Holdings – When it comes to insiders, those close to the company currently hold 1.40% of the company. Insider ownership of the company has changed in the amount of -26.58% over the past 3 months.

Interested In How Many Shares Are Available?

Traders seem to have a heavy interest in the counts of shares both outstanding and available. When it comes to Exelixis, Inc., there are currently 294.02M and there is a float of 289.90M. These data mean that of the total of 294.02M shares of EXEL that are out there today, 289.90M are able to be traded on the public market.

I also like to take a look at the short percentage of the float. After all, when a large percentage of the float available for trading is shorted, the overall feeling in the market is that the stock is going to lose value. In regard to EXEL, the percentage of the float that is sold short comes to a total of 6.07%. Most traders believe that a concerning short percent of the float is considered to be anything over 40%. In my research, I have calculated that any short percent of the float over 26% is generally a play that comes with hefty risk.

Financial Results And Expectations

What have ween seen from EXEL in terms of financial results?Here is the data:

  • Analyst Expectations – As it stands at the moment, analysts are expecting that the company will generate EPS of 1.37, with 0.27 being reported in the report for the current quarter. Although this is not tide to earnings, since we’re chatting about analysts, EXEL is currently rated a 2.10 on a scale from 1 to 5 on which 1 is the poorest possible Wall Street analyst rating and 5 is the best.
  • 5-Year Sales – In the last half decade, Exelixis, Inc. has created a change in sales that works out to 93.70%. EPS over the past 5 years have generated a change of 29.60%.
  • Q/Q – when it comes to quarter over quarter data, or Q/Q data as it is often represented in the human world, Exelixis, Inc. has created a change in earnings that amounts to 840.80%. The company has also moved the needle in regard to sales that comes to a total of 90.30%.

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