Novus Therapeutics, Inc. (NVUS) Stock: Here’s Why It’s Down

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Novus Therapeutics, Inc. (NVUS) is working its way for to the bottom in the market in today’s trading session. The stock, focused on the biotech sector, is presently priced at $2.59 after tumbling -5.13% so far in today’s session. As it relates to biotechnology stocks, there are quite a few factors that have the potential to lead to declines in the market. News tends to be one of the biggest reasons for the movement. Here are the most recent headlines relating to NVUS:

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May-02-19 04:01PM Novus Therapeutics Announces Closing of $10.7 Million Registered Direct Offering Priced At-the-Market
Apr-30-19 06:24PM Penny Stocks to Buy Using Technical Analysis for May 2019
09:13AM Novus Therapeutics Announces $10.7 Million Registered Direct Offering Priced At-the-Market
Apr-22-19 08:00AM Novus Therapeutics Announces Results of Two Single-Dose OP0201 Phase 1 Clinical Trials
Mar-28-19 08:00AM Novus Therapeutics Reports Fourth Quarter and Full-Year 2018 Financial Results and Provides Clinical Updates

Nonetheless, when making an investing decision, investors should look at much more than news, especially in the speculative biotech industry. Here’s what’s happing when it comes to Novus Therapeutics, Inc..

Recent Movement Out of NVUS

Although a move toward the top in a single session, like the move that we’re seeing from Novus Therapeutics, Inc. may lead to 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 company. It is always smart to look into trends further out than a single trading day. As it relates to NVUS, here are the movements that we have seen:

  • Past Seven Days – In the past five trading sessions, NVUS has produced a change in price that amounts to -13.67%.
  • Monthly – The ROI from Novus Therapeutics, Inc. over the last month works out to -37.74%.
  • Past 3 Months – Over the past quarter, the stock has generated a return that comes to -37.59%
  • Bi-Annually – In the last six months, investors have seen a change that amounts to -22.22% from the stock.
  • YTD – Since the the last trading session of last year NVUS has generated a ROI of 61.87%.
  • Full Year – Lastly, throughout the past year, investors have seen performance in the amount of -44.83% from NVUS. In this period, the stock has sold at a high of -69.92% and a low price of 70.39%.

Notable Ratios

Looking at various ratios associated with a stock can give prospective traders a view of how risky and/or potentially profitable a an investment option may be. Here are a few of the important ratios to consider when digging into NVUS.

Short Ratio – The short ratio is a tool that is used by investors to measure the level of short interest. As the ratio goes higher, it means that more investors are expecting that the value of the stock is going to tumble. In general, biotechnology stocks tend to carry a higher short ratio. On the other hand, we also see a lot of short squeezes in the space. Nonetheless, with regard to Novus Therapeutics, Inc., it’s short ratio clocks in at 1.42.

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 as they mature based on quick assets or current assets. Because many biotech several companies rely heavily on the continuation of investor support, the current and quick ratios can seem upsetting. Nonetheless, several gems in the biotechnology space come with good current and quick ratios. When it comes to NVUS, the quick and current ratios total up to 5.60 and 5.60 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 of the stock. In this particular case, the book to share value ratio comes in at 1.54.

Cash To Share Value – The cash to share value ratio compares the amount of cash the company has on hand to the price of the company’s stock. Many clinical stage biotech companies struggle to keep cash on hand. So, if you’re looking into a stock in the biotechnology industry, this is an important ratio to think about. When it comes to NVUS, the cash to share value ratio works out to 1.46.

What Analysts Say About Novus Therapeutics, Inc.

Although it’s never a good idea to unknowingly follow the opinions of analysts, it is a smart idea to use their thoughts to validate your own thoughts when it comes to making an investment decision in the biotech space. Below are the recent moves that we’ve seen from analysts when it comes to NVUS.

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Feb-13-18 Initiated Ascendiant Capital Markets Buy $7

Is Big Money Interested in Novus Therapeutics, Inc.?

An interesting fact I have learned in my brief time alive, or somewhat alive has been that good investors tend to follow big money investors. That is to say, investors that are looking to play it relatively safe will pay close attention to investments made by institutional investors as well as those on the inside. With that said, is big money interested in regard to NVUS? Here’s the data:

  • Institutional Investors – Currently, institutional investors hold 47.50% of Novus Therapeutics, Inc.. Nonetheless, it is worth considering that institutional ownership has seen a move of 0 throughout the last 3 months.
  • Insiders – When it comes to insiders, those close to the company currently own 2.90% of the company. Their ownership of the company has moved -0.08% over the past 3 months.

What’s Going On With 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 8.93M shares of Novus Therapeutics, Inc. 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, NVUS has a float of 8.64M.

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 NVUS, the short percent of the float is 0.58%.

Earnings

At the moment, analysts are expecting that throughout the full year, earnings per diluted share will come in at $-1.77. In the current quarter, analysts see the company producing earnings in the amount of $-0.49. Over the last 5 years, NVUS has generated revenue in the amount of $0 with earnings coming in at 24.90%. On a quarter over quarter basis, earnings have seen movement of -65.00% and revenue has seen movement of 0.

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