BioMarin Pharmaceutical Inc. (BMRN) Stock: Why It’s Headed For The Top

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BioMarin Pharmaceutical Inc. (BMRN) is headed up in the market in today’s trading session. The company, one that is focused on the biotechnology space, is presently trading at $87.16 after a move up of 7.54% so far today. In terms of biotechnology stocks, there are several factors that have the potential to lead to movement in the market. News is one of the most common reasons for movement. Here are the recent headlines relating to BMRN:

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May-14-19 11:30AM 2 Stocks You Definitely Should Consider Shorting This Week
May-10-19 08:55AM Read This Before Buying BioMarin Pharmaceutical Inc. (NASDAQ:BMRN) Shares
May-09-19 01:11PM BioMarin Bulls Are Counting on Gene Therapy to Reignite the Stock
11:05AM Sarepta (SRPT) Q1 Earnings Top Estimates, Exondys 51 Sales Up
07:46AM These 3 revolutionary genomics companies are changing lives for patients and investors

However, when making an investing decision, investors should take a look at far more than just news, especially in the generally speculative biotechnology space. Here’s what’s happing when it comes to BioMarin Pharmaceutical Inc..

The Performance That BMRN Investors Have Experienced

While a move up on a single session, like the move that we’re seeing from BioMarin Pharmaceutical Inc. might cause excitement in some investors, a single session move alone should not be the basis of a decision to, or not to, invest in a stock. It is generally a good idea to dig into trends experienced by the stock for a period longer than a single trading session. When it comes to BMRN, here are the returns that we’ve seen:

  • Past 5 Trading Sessions – In the past 5 trading sessions, BMRN has generated a price change amounting to 5.37%.
  • Past 30 Days – The return on investment from BioMarin Pharmaceutical Inc. throughout the past 30 days has been -5.11%.
  • Past Three Months – Throughout the past three months, the stock has generated a return of -8.49%
  • Past 6 Months – Throughout the last six months, we’ve seen a change that works out to -8.90% from the company.
  • This Year So Far – Since the open of this year BMRN has generated a ROI of 2.36%.
  • Full Year – Lastly, throughout the last full year, investors have seen movement amounting to -2.66% out of BMRN. Throughout this period of time, the stock has sold at a high price of -18.34% and a low price of 10.15%.

Key Ratios

Looking at various ratios having to do with a stock can provide traders an understanding of just how risky and/or potentially profitable a an investment option may be. Here are some of the key ratios to think about when digging into BMRN.

Short Ratio – The short ratio is a tool that is used by investors to measure the amount of short interest. As the ratio goes higher, it means that more investors have a belief that the stock is headed for declines. Across the sector, biotech stocks can come with a higher short ratio. On the other hand, we tend to see a lot of short squeezes in the space. Nonetheless, with regard to BioMarin Pharmaceutical Inc., the stock’s short ratio amounts to 8.32.

Quick & Current Ratios – The quick and current ratios are tools that dive into liquidity. Basically, they measure If a company is able to pay its debts when they come due with only current assets or quick assets. In the biotech sector, several companies rely on continued investor support, these ratios can be bad. Nonetheless, several gems in the biotechnology space come with positive quick and current ratios. When it comes to BMRN, the quick and current ratios work out to 2.80 and 3.80 respectively.  

Book To Share Value – The book to share value compares the current book value of assets currently owned by the company to the share price of the stock. as it relates to BioMarin Pharmaceutical Inc., that ratio is 16.47.

Cash To Share Value – Finally, the cash to share value ratio compares the total amount of cash the company has on hand to the value of the company’s stock. Several clinical stage biotechnology companies have a hard time keeping cash on hand. So, when investing in the biotech space, this is an important ratio to look into. As it relates to BMRN, the cash to share value ratio is 4.94.

What Analysts Think About BioMarin Pharmaceutical Inc.

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 opinions in order to validate your own opinions before making an investment decision in the biotech industry. Here are the recent moves that we’ve seen from analysts with regard to BMRN.

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Apr-09-19 Resumed Raymond James Outperform
Jan-02-19 Downgrade Raymond James Outperform → Mkt Perform
Dec-14-18 Initiated Wolfe Research Outperform
Oct-01-18 Initiated Cantor Fitzgerald Overweight $126
Aug-07-18 Reiterated Stifel Buy $109 → $114

Is Big Money Interested in BioMarin Pharmaceutical Inc.?

An interesting fact I’ve come to understand so far in my short period here is that good investors tend to follow the moves made by big money players. In general, investors that want to play it relatively safe will pay close attention to moves made by institutional investors and insiders. So, is big money interested when it comes to BMRN? Here’s the data:

Institutions own 0 of the company. Institutional interest has moved by -0.16% over the past three months. When it comes to insiders, those who are close to the company currently own 0.40% percent of BMRN shares. Institutions have seen ownership changes of an accumulative -19.07% over the last three months.

Looking At 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 181.14M shares of BioMarin Pharmaceutical 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, BMRN has a float of 178.27M.

I also like to dig into the short float. Think about it, when a high portion of the float is shorted, the overall opinion among investors is that the stock is going to take a dive. As far as BMRN, the percentage of the float that is shorted currently sits at 5.19%. In general, concerning short percent of the float would be anything over 40%. However, I have seen that a short ratio over 26% is likely a a play that could prove to be very risky.

What We’ve Seen In earnings results

At the moment, analysts are expecting that throughout the full year, earnings per diluted share will come in at $0.25. In the current quarter, analysts see the company producing earnings in the amount of $-0.10. Over the last 5 years, BMRN has generated revenue in the amount of $22.10% with earnings coming in at 19.40%. On a quarter over quarter basis, earnings have seen movement of -14.30% and revenue has seen movement of 7.30%.

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