Nektar Therapeutics (NKTR) Stock: A Good Pick In The Biotech Sector?

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Nektar Therapeutics (NKTR) is trending down in the market today. The company, one that is focused on the biotech space, is presently trading at $31.19 after a move down of -6.56% so far today. When it comes to biotechnology stocks, there are several factors that have the potential to cause movement in the market. One of the most common is news. Here are the most recent trending headlines surrounding NKTR:

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Apr-12-19 03:26PM These 3 Falling Knives Are Expected to Outperform
Apr-11-19 10:57AM Analysts believe the stock market will set a record soon and these names are going to lead the way
Apr-03-19 04:38PM GameStop falls while Dave & Buster’s and Blue Apron rise
11:50AM A Look At Nektar Therapeutics’s (NASDAQ:NKTR) Exceptional Fundamentals
Apr-02-19 03:00PM Nektar Therapeutics Presents Preclinical Data on its Immuno-Oncology Pipeline Candidates at the American Association for Cancer Research (AACR) Annual Meeting 2019

Nonetheless, any time investors are making an investing decision, prospective investors should take a look at far more than just news, especially in the generally speculative biotechnology industry. Here’s what’s happening in regard to Nektar Therapeutics.

How NKTR Has Been Trending

While a single session decline, like the fall that we’re seeing from Nektar Therapeutics may cause fear in some investors, that by itself should not be the basis of a decision to, or not to, buy a company’s stock. It’s generally important to dig into trends just a single trading day. As it relates to NKTR, here are the trends that investors have seen:

  • Weekly – Over the past 7 days, NKTR has generated a change in price amounting to -12.95%.
  • Past Month – The return on investment from Nektar Therapeutics in the last month has been -9.36%.
  • Quarterly – In the last quarter, the company has produced a return on investment of -30.10%
  • Bi-Annually – Over the previous six months, investors have seen a change that works out to -36.45% from the company.
  • Year To Date – Since the close of last year NKTR has produced a ROI of -5.11%.
  • Annually – Finally, over the past full year, investors have seen movement that works out to -66.72% out of NKTR. Over this period, the stock has traded at a high of -67.34% and a low of 6.74%.

Ratios Of Note

Looking at various key ratios having to do with a company generally gives prospective investors a view of just how risky and/or rewarding a an investment option might be. Below are some of the key ratios to consider when looking at NKTR.

Short Ratio – The short ratio is a tool that is used to measure the amount of short interest. The higher this ratio, the more investors have a belief that the stock is headed for declines. Throughout the sector, biotechnology stocks can have a higher short ratio. However, we tend to see a lot of short squeezes in the sector. Nonetheless, with regard to Nektar Therapeutics, it’s short ratio comes to 12.35.

Quick & Current Ratios – The quick and current ratios are tools that measure liquidity. Basically, they measure If a company is able to cover its debts as they mature based on quick assets or current assets. In the biotech industry, companies rely on continued support from investors, the current and quick ratios can be bad. Nonetheless, several better companies in the biotechnology sector do have positive current and quick ratios. As it relates to NKTR, the quick and current ratios work out to 17.40 and 17.50 respectively.  

Book To Share Value – The book to share value ratio compares the current book value of assets owned by the company to the share price of the stock. In this case, that ratio is 9.91.

Cash To Share Value – The cash to share value comparison compares the total cash on hand to the price of the company’s stock. Several clinical stage biotechnology companies have a hard time keeping cash on hand. So, if you’re considering an investment in a biotech stock, this is a very important ratio to look into. In terms of NKTR, the cash to share value works out to 7.70.

Analyst Opinions Of Nektar Therapeutics

Although 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 analysis when validating your own due diligence before making investment decisions in the biotech sector. Below you’ll find the most recent moves that we have seen from analysts as it relates to NKTR.

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Mar-15-19 Initiated SVB Leerink Mkt Perform $38
Dec-13-18 Initiated Goldman Buy $62
Jun-11-18 Downgrade H.C. Wainwright Buy → Neutral $54
Jun-04-18 Reiterated H.C. Wainwright Buy $125 → $97
Apr-20-18 Initiated Seaport Global Securities Buy $120

Is Big Money Interested in Nektar Therapeutics?

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 NKTR, here’s what we’re seeing:

Institutions own 96.10% of the company. Institutional interest has moved by 0.03% over the past three months. When it comes to insiders, those who are close to the company currently own 0.60% percent of NKTR shares. Institutions have seen ownership changes of an accumulative -19.00% over the last three months.

Float Information

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 173.31M shares of Nektar Therapeutics 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, NKTR has a float of 172.57M.

I also like to pay attention to the short percent. Think about it, if a large percentage of the float available for trading is shorted, the overall feeling among traders is that the company is headed for a dive. With regard to NKTR, the percentage of the float that is sold short is 11.39%. Most investors would say that a high short percent of the float is anything over 40%. Through my work, I have seen that a short percent of the float over 26% is likely a a play that could prove to be very risky.

What We’ve Seen In Financial Results

What have ween seen from NKTR in terms of financial results?Here’s what you need to know:

  • Analyst Expectations – Currently, Wall St. analysts expect that the company will create earnings per diluted share of -2.51, with -0.68 being reported in the earnings announcement for the current quarter. Although this information is not tide to earnings, because we’re talking about Wall St. analysts, the stock is presently graded as a 1.90 on a scale from 1 to 5 on which 1 is the worst average analyst grade and 5 is the best possible.
  • 5-Year Sales – Throughout the past 5 years, Nektar Therapeutics has generated a movement in sales that works out to be 51.60%. Earnings per diluted share in the last half decade have generated a change of 36.30%.
  • Q/Q – In terms of quarter over quarter earnings performance, or Q/Q data as it is commonly referred to as in today’s society, the company has seen a earnings change by -141.80%. NKTR has also experienced a change when it comes to revenue that comes to a total of -58.30%.

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