MannKind Corporation (MNKD) Stock: A Biotech Stock That’s Headed Down

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MannKind Corporation (MNKD) is trending down in the market in today’s trading session. The company, one that is focused in the biotech space, is presently priced at $1.25 after falling -6.72% so far today. As it relates to biotech companies, there are several factors that have the ability to lead to 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 MNKD:

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May-08-19 09:24AM MannKind Corporation (MNKD) Q1 2019 Earnings Call Transcript
May-07-19 05:53PM Edited Transcript of MNKD earnings conference call or presentation 7-May-19 1:00pm GMT
08:19AM MannKind: 1Q Earnings Snapshot
08:00AM MannKind Corporation Reports 2019 First Quarter Financial Results
May-02-19 09:26AM United Therapeutics (UTHR) Down Despite Q1 Earnings Beat

Nonetheless, when making a decision with regard to investing, investors should look into much more than news, this is especially the case in the speculative biotech sector. Here’s what’s going on with MannKind Corporation.

Recent Movement Out of MNKD

While a decline in a single session, like the move that we’re seeing from MannKind Corporation may make some investors tremble, that alone shouldn’t be the reason for a decision to, or not to, buy a company’s stock. It is always a good idea to look into trends for a period longer than a single trading day. As it relates to MNKD, here are the returns that we have seen:

  • Past 5 Sessions – Throughout the past seven days, MNKD has generated a change in price amounting to -18.30%.
  • Past Month – The monthly performance from MannKind Corporation comes to -33.51%.
  • Past Quarter – Throughout the past three months, the stock has produced a ROI that works out to -3.85%
  • Past 6 Months – Throughout the last 6 months, investors have seen a performance that works out to -30.94% from the stock.
  • Year To Date – Since the the last trading session of last year MNKD has produced a return on investment of 17.92%.
  • Full Year – Finally, throughout the past full year, we have seen movement of -30.17% out of MNKD. Throughout this period of time, the stock has sold at a high price of -58.88% and a low price of 32.98%.

Key Ratios

Digging into a few key ratios associated with a company can give prospective traders a view of how dangerous and/or potentially profitable a an investment option might be. Here are some of the important ratios to look at when looking at MNKD.

Short Ratio – The short ratio is a measure of short interest. As the ratio climbs, it means that more investors believe that the price of the stock is headed for declines. Across the sector, biotechnology stocks can have a higher short ratio. However, we also tend to see quite a few short squeezes in the sector. Nonetheless, when it comes to MannKind Corporation, the stock’s short ratio clocks in at 11.04.

Quick & Current Ratios – The quick and current ratios are ratios that get an idea of the company’s liquidity. Essentially, they measure If a company is able to cover its debts when they come due using current assets or quick assets. In the biotech space, companies rely heavily on continued investor support, the current and quick ratios can be upsetting. However, quite a few better companies in the biotechnology sector come with strong current and quick ratios. When it comes to MNKD, the quick and current ratios come to 1.00 and 1.10 respectively.  

Book To Share Value – The book to share value ratio compares the value of assets owned by the company to the price of shares. In this particular case, that ratio is -1.08.

Cash To Share Value – The cash to share value ratio compares the total amount of cash the company has on hand to the price of shares. Several early stage biotech companies have a hard time keeping cash on hand. So, when investing in the biotech sector, this is a very important ratio to think about. When it comes to MNKD, the cash to share value ratio comes to 0.35.

What Analysts Say About MannKind Corporation

Although it’s not a smart idea to avoid doing your due diligence and blindly following the thoughts of analysts, it is a smart idea to consider their analysis when validating your own due diligence when it comes to making investment decisions in the biotech sector. Here are the recent moves that we’ve seen from analysts when it comes to MNKD.

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Mar-04-19 Initiated SVB Leerink Outperform $3
Feb-22-19 Initiated SVB Leerink Outperform $3
Feb-28-18 Downgrade Maxim Group Hold → Sell $1
Nov-01-17 Downgrade Maxim Group Buy → Hold
Oct-10-17 Initiated H.C. Wainwright Buy $7

What Institutions And Insiders Think Of MannKind Corporation

An interesting fact I’ve come to understand in my short period as an intelligence is that good investors tend to follow big money players. Usually, investors that want to keep their investments relatively safe will keep their eyes on moves made by institutions and insiders. So, is big money interested as it relates to MNKD? Here’s the data:

  • Institutions – As it stands now, institutions own 30.50% of MNKD. However, it is worth noting that institutional ownership has seen a move in the amount of 0.69% in the last 3 months.
  • Insider Moves – with regard to insiders, members of the management team and others close to MNKD currently hold 0.30% of the company. Their ownership of the company has seen a move of 5.88% throughout the last quarter.

Looking At Share Counts

Traders and investors tend to like to know the counts of shares both available and outstanding. With respect to MannKind Corporation, there are currently 201.28M and there is a float of 173.79M. These numbers mean that out of the total of 201.28M shares of MNKD in existence today, 173.79M are able to trade hands in the public realm.

I also find it important to dig into the short float. Think about it, when a large portion of the float is shorted, the overall opinion among traders is that the stock is going to fall hard. With regard to MNKD, the percentage of the float that is shorted is 19.58%. Most traders believe that a concerning short percent of the float would be any percentage over 40%. In my research, I’ve found that any short percent of the float over 26% is generally a a play that could prove to be very risky.

Earnings

At the moment, analysts are expecting that throughout the full year, earnings per diluted share will come in at $-0.12. In the current quarter, analysts see the company producing earnings in the amount of $-0.09. Over the last 5 years, MNKD has generated revenue in the amount of $0 with earnings coming in at 28.40%. On a quarter over quarter basis, earnings have seen movement of 78.50% and revenue has seen movement of 255.60%.

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