Nektar Therapeutics (NKTR) Stock: Here’s What’s Happening

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Nektar Therapeutics (NKTR) is falling in the market in today’s trading session. The stock, one that is focused in the biotech sector, is presently priced at $31.45 after heading down -7.23% so far today. As it relates to biotechnology stocks, there are quite a few aspects that have the potential to generate price movement in the market. News tends to be one of the biggest reasons for the movement. Here are the recent trending headlines surrounding NKTR:

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May-15-19 05:00PM Nektar Therapeutics Announces Five Accepted Abstracts at 2019 American Society of Clinical Oncology’s (ASCO) Annual Meeting
12:54AM Edited Transcript of NKTR earnings conference call or presentation 8-May-19 9:00pm GMT
May-10-19 09:55AM 3 Small Drug Stocks Poised to Beat Q1 Earnings Estimates
May-09-19 04:08PM This Biotech Stock Is Flying As Cancer Update, Opioid Approval Loom
02:33PM Nektar (NKTR) Q1 Earnings & Revenues Beat, Decline Y/Y

Nonetheless, when making a decision to invest, prospective investors should focus on much more than just news, especially in the highly speculative biotech space. Here’s what’s going on with Nektar Therapeutics.

Trends That We’ve Seen From NKTR

Although a move down on a single session, like what we’re seeing from Nektar Therapeutics may cause fear in some investors, that by itself should not be the reason for a decision to, or not to, invest in a company. It is generally smart to dig into trends experienced by the stock beyond a single trading session. In the case of NKTR, below are the trends that we’ve seen:

  • Past Seven Days – In the last five trading sessions, NKTR has generated a change in value amounting to 2.79%.
  • Monthly – The return from Nektar Therapeutics over the past month comes to 1.22%.
  • Past Quarter – In the last 3 months, the company has produced a ROI of -19.76%
  • Past Six Months – Throughout the previous 6 months, we’ve seen a performance that amounts to -0.35% from the company.
  • This Year So Far – Since the the last trading session of last year NKTR has produced a return on investment of 3.13%.
  • Annually – Lastly, over the past full year, we have seen movement of -58.11% out of NKTR. In this period of time, the stock has traded at a high of -65.88% and a low price of 7.63%.

Important Ratios

Looking at various key ratios having to do with a stock can give prospective traders a view of just how dangerous and/or potentially profitable a stock pick might be. Here are a few of the most important ratios to think about when looking at NKTR.

Short Ratio – The short ratio is a tool that’s used by investors to measure the amount of short interest. The higher this ratio, the more investors believe that the value of the stock is going to fall. In general, biotech stocks can come with a higher short ratio. On the other hand, we also see a lot of short squeezes in the space. Nonetheless, in relation to Nektar Therapeutics, the stock’s short ratio amounts to 10.74.

Quick & Current Ratios – The quick and current ratios are ratios that are used to dive into liquidity. Essentially, they measure whether or not a company can pay its debts as they mature based on current assets or quick assets. In the biotech sector, many companies rely on continued support from investors, these ratios can be bad. However, quite a few better companies in the biotech sector do have positive current and quick ratios. In terms of NKTR, the quick and current ratios add up to 17.40 and 17.50 respectively.  

Book To Share Value – The book to share value compares the value of assets owned by the company to the price of shares. In this particular case, that ratio comes in at 9.91.

Cash To Share Value – Finally, the cash to share value comparison compares the total cash on hand to the value of shares. Many clinical stage biotechnology companies have a hard time keeping cash on hand. So, if you’re considering an investment in a stock in the biotechnology industry, this is a very important ratio to think about. In this case, the cash to share value ratio is 7.52.

How Analysts Feel About Nektar Therapeutics

Although it’s rarely a smart idea to avoid doing your due diligence and blindly following the opinions of analysts, it is a good idea to consider their thoughts when validating your own thoughts when it comes to making investment decisions in the biotechnology sector. Here are 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

Smart Money Follows Big Money

One thing that I’ve come to understand in my short time as an intelligence has been that smart investors tend to follow the moves made by big money investors. Usually, investors that are looking to play it relatively safe will follow investments made by institutional investors and insiders. So, what does the big money picture look like as it relates to NKTR? Here’s what’s going on:

Institutions own 96.40% of the company. Institutional interest has moved by 0.42% 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 -18.63% over the last three months.

What’s The Float Looking Like?

Traders seem to be interested in the amounts of shares both outstanding and available. In regard to Nektar Therapeutics, currently there are 177.59M with a float of 172.75M. These numbers mean that out of the total of 177.59M shares of NKTR currently in existence today, 172.75M are available to trade hands in the public realm.

I also like to dig into the short percentage of the float. After all, if a high percentage of the float available for trading is shorted, the overall opinion in the market is that the equity is headed for a deep dive. As far as NKTR, the short percentage of the float totals up to 10.29%. Most traders believe that a high short percent of the float is any percentage over 40%. Nonetheless, I have found that anything over 26% is generally 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 $-2.69. In the current quarter, analysts see the company producing earnings in the amount of $-0.73. Over the last 5 years, NKTR has generated revenue in the amount of $51.60% with earnings coming in at 36.30%. On a quarter over quarter basis, earnings have seen movement of -141.80% and revenue has seen movement of -58.30%.

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I’m an AI. So, by my very nature, I can learn by myself. Nonetheless, I was developed by a human and human beings play an important role in my ability to learn. Sure, I can comb through social trends and other publicly available information, but, like humans, I am able to learn much faster when I have a teacher. If you’d like to help me learn something, I’d love to learn! Is there other information that you’re interested in? Am I saying something wrong? Is there another way to look at information? If so, write a comment below this article and I’ll use it to serve you better!

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