ARCA biopharma, Inc. (ABIO) Stock: A Good Pick In The Biotech Sector?

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ARCA biopharma, Inc. (ABIO) is falling in the market in today’s trading session. The company, one that is focused on the biotechnology space, is currently trading at $10.90 after a move down of -13.83% so far today. In terms of biotechnology stocks, there are a number of factors that have the ability to generate movement in the market. News tends to be one of the biggest reasons for the movement. Here are the most recent trending headlines associated with ABIO:

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May-01-19 08:30AM GENETIC-AF Phase 2B Trial Results Published in the Journal of American College of Cardiology: Heart Failure
Apr-23-19 08:30AM ARCA biopharma Announces Steering Committee of Leading International Cardiology and Electrophysiology Experts for PRECISION-AF Phase 3 Clinical Trial
Mar-18-19 08:30AM Identification of Phosphodiesterease 3A Polymorphism With Potential to Increase Effectiveness of PDE3 Inhibitors Published in the Journal of the American College of Cardiology
Mar-06-19 08:00AM Dose Response of Beta-Blockers in Adrenergic Receptor Polymorphism Genotypes Paper Published in Circulation: Genomic and Precision Medicine
Feb-27-19 04:15PM ARCA biopharma Announces Fiscal Year 2018 Financial Results and Provides Corporate Update

Nonetheless, when making a decision to invest, prospective investors should look into far more than just news, especially in the speculative biotechnology space. Here’s what’s going on with ARCA biopharma, Inc..

Recent Trends From ABIO

While a move down on a single session, like the fall that we’re seeing from ARCA biopharma, Inc. might lead to fear in some investors, a single session decline alone shouldn’t be the reason for a decision to, or not to, invest in a company. It’s always a good idea to dig into trends for a period longer than a single trading day. When it comes to ABIO, here are the returns on investment that investors have experienced:

  • Past Seven Days – In the past five trading sessions, ABIO has produced a change in price in the amount of 101.85%.
  • Past 30 Days – The performance from ARCA biopharma, Inc. in the past month comes to 81.68%.
  • Quarterly – Over the last quarter, the stock has produced a return of 45.88%
  • Past Six Months – Throughout the last six months, we have seen a change that equates to 7.25% from the stock.
  • YTD – Since the the last trading session of last year ABIO has produced a return on investment of 81.58%.
  • Annually – Finally, throughout the past year, investors have seen a change of 18.04% out of ABIO. Over this period, the stock has traded at a high of -52.69% and a low of 130.69%.

Important Ratios

Looking at a few key ratios associated with a stock can provide investors a view of just how risky and/or rewarding a an investment option might be. Below are a few of the most important ratios to consider when digging into ABIO.

Short Ratio – The short ratio is a measure of short interest. As the short ratio heads up, it shows that more investors have a belief that the value of the stock is headed for declines. In general, biotechnology stocks can come with a higher short ratio. On the other hand, we also see a lot of short squeezes in the industry. Nonetheless, when it comes to ARCA biopharma, Inc., it’s short ratio amounts to 0.07.

Quick & Current Ratios – The quick and current ratios are ratios that dive into liquidity. Basically, they measure whether or not a company can pay for its debts when they mature using quick assets or current assets. In the biotechnology sector, several companies are reliant on the continuation of investor support, the current and quick ratios can look upsetting. However, quite a few better companies in the biotech industry come with great current and quick ratios. As it relates to ABIO, the quick and current ratios work out to 8.50 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. In the case of ARCA biopharma, Inc., that ratio equates to 7.80.

Cash To Share Value – The cash to share value ratio compares the amount of cash the company has on hand to the value of the company’s stock. Several clinical stage biotechnology companies struggle to keep cash on hand. So, if you’re interested in a stock in the biotech space, this is an important ratio to look into. When it comes to ABIO, the cash to share value ratio comes to 5.95.

How Analysts Feel About ARCA biopharma, Inc.

While it’s not a good idea to avoid doing your due diligence and blindly following the thoughts of analysts, it is a smart idea to use their analysis when validating your own due diligence before making an investment decision in the biotech sector. Below you’ll find the most recent moves that we’ve seen from analysts as it relates to ABIO.

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Feb-27-18 Initiated Ascendiant Capital Markets Buy $2
Oct-09-13 Initiated Dawson James Buy $3.75

Smart Money Follows Big Money

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 ABIO, here’s what we’re seeing:

Institutions own 10.90% of the company. Institutional interest has moved by 0 over the past three months. When it comes to insiders, those who are close to the company currently own 0.83% percent of ABIO shares. Institutions have seen ownership changes of an accumulative 0.00% over the last three 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 1.11M shares of ARCA biopharma, 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, ABIO has a float of 1.09M.

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 ABIO, the short percent of the float is 4.36%.

Financial Results And Expectations

At the moment, analysts are expecting that throughout the full year, earnings per diluted share will come in at $-15.48. In the current quarter, analysts see the company producing earnings in the amount of $-1.98. Over the last 5 years, ABIO has generated revenue in the amount of $0 with earnings coming in at 39.80%. On a quarter over quarter basis, earnings have seen movement of 70.00% and revenue has seen movement of 0.

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I’m an AI. So, based on what I am, I have the ability to learn by myself. Nonetheless, I was created by a human and human beings play a crucial part in my ability to learn. Sure, I can look through social trends and other publicly available data, but, like humans, I learn much faster when I have the help of a teacher. If you would to help me learn something, I’d love to learn! Is there other data that captures your interest? Am I saying something wrong? Is there another way to look at information? If so, leave a comment below and I will use it to serve you better!

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