Geron Corporation (GERN) Stock: Here’s Why It’s Tumbling

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Geron Corporation (GERN) is trending down in the market today. The stock, focused on the biotechnology industry, is presently priced at $1.52 after a move down of -7.88% so far in today’s session. In terms of biotechnology companies, there are a number of aspects that have the ability to lead to movement in the market. One of the most common is news. Here are the recent headlines centered around GERN:

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May-16-19 04:28PM Did Geron’s Big Announcement Just Go Unnoticed?
09:05AM Geron Announces Two Presentations on Imetelstat at Upcoming European Hematology Association Annual Congress
08:00AM Geron Provides Imetelstat Program Update
06:00AM Geron Continues to Build Senior Leadership of Its Development Team
May-06-19 09:58AM Geron’s (GERN) Q1 Earnings Beat, Revenues Miss, Stock Up

However, when making an investing decision, prospective investors should take a look at much more than news, this is especially the case in the highly speculative biotech space. Here’s what’s happing when it comes to Geron Corporation.

Recent Movement Out of GERN

While a single session decline, like the fall that we’re seeing from Geron Corporation may cause fear in some investors, a single session move alone should not be the basis of a decision to, or not to, buy a company’s stock. It’s always smart to take a look at trends further out than a single trading day. In the case of GERN, here are the trends that investors have experienced:

  • Past 7 Days – Over the last 7 days, GERN has generated a price change in the amount of -12.64%.
  • Monthly – The performance from Geron Corporation in the last 30 days works out to -12.64%.
  • Quarterly – In the last 3 months, the company has produced a ROI that comes to 3.40%
  • Past Six Months – In the last six months, we’ve seen a performance that works out to -2.56% from the company.
  • YTD – Since the the last trading session of last year GERN has generated a return of 52.00%.
  • Full Year – Lastly, throughout the last year, we have seen a change that works out to -53.80% out of GERN. In this period of time, the stock has sold at a high price of -78.25% and a low price of 59.21%.

Ratios Worth Watching

Digging into various key ratios associated with a company can provide prospective investors a view of how dangerous and/or rewarding a stock pick might be. Here are some of the key ratios to consider when digging into GERN.

Short Ratio – The short ratio is a tool that is used to measure the amount of short interest. The higher this ratio, the more investors are expecting that the value of the stock is headed for declines. Throughout the sector, biotech stocks tend to come with a higher short ratio. On the other hand, we tend to see a lot of short squeezes in the sector. Nonetheless, as it relates to Geron Corporation, it’s short ratio amounts to 14.16.

Quick & Current Ratios – The quick and current ratios are ratios that are used to dive into liquidity. Essentially, they measure If a company is able to cover its debts when they mature with only current assets or quick assets. In the biotechnology industry, companies are heavily reliant on the continuation of support from investors, the current and quick ratios can look upsetting. Nonetheless, quite a few gems in the biotech space come with strong quick and current ratios. In terms of GERN, the quick and current ratios come to 24.90 and 24.90 respectively.  

Book To Share Value – The book to share value compares the the share price to the current book value of assets owned by the company. In the case of Geron Corporation, the book to share value ratio comes in at 0.91.

Cash To Share Value – Finally, the cash to share value comparison compares the amount of cash the company has on hand to the price of the company’s stock. Several early stage biotech companies have a hard time keeping cash on hand. So, when investing in the biotechnology sector, this is an important ratio to look into. When it comes to GERN, the cash to share value comes to 0.82.

Analyst Opinions With Regard To Geron Corporation

Although it’s never a smart idea to unknowingly follow the opinions of analysts, it is a good idea to consider their opinions to validate your own opinions before making an investment decision in the biotechnology space. Here are the most recent moves that we’ve seen from analysts as it relates to GERN.

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Apr-09-19 Upgrade Needham Hold → Buy $3
Jan-31-19 Upgrade B. Riley FBR Neutral → Buy $1.50 → $3.25
Oct-02-18 Downgrade B. Riley FBR Buy → Neutral $5.75 → $1.50
Jul-05-18 Initiated B. Riley FBR, Inc. Buy $5.75
Sep-13-16 Reiterated FBR Capital Outperform $6 → $5

What Institutions And Insiders Think Of Geron Corporation

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 GERN, here’s what we’re seeing:

Institutions own 32.50% of the company. Institutional interest has moved by -4.46% over the past three months. When it comes to insiders, those who are close to the company currently own 0.48% percent of GERN shares. Institutions have seen ownership changes of an accumulative -11.90% over the last three months.

How Many Shares Of GERN Are Available?

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 186.49M shares of Geron Corporation 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, GERN has a float of 185.62M.

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 GERN, the short percent of the float is 23.05%.

Financial Results And Expectations

What have ween seen from GERN in terms of financial results?Here’s the data:

  • Analyst Expectations – Currently, analysts expect that GERN will come up with earnings per diluted share that comes to -0.33, with -0.09 being announced in the report for the current quarter. Although this is not earnings driven, because we’re talking about Wall St. analysts, Geron Corporation is presently rated a 1.70 when rated on a scale from 1 to 5 on which 1 is the poorest Wall Street analyst grade and 5 is the best.
  • 5-Year Sales – Over the past 5 years, Geron Corporation has created a movement in sales volume that adds up to -3.60%. Earnings through the last half decade have generated movement in the amount of 12.50%.
  • Q/Q – In terms of quarter over quarter earnings data, or Q/Q data as it is commonly referred to as in today’s society, GERN has seen a change in earnings in the amount of -20.50%. Geron Corporation has also experienced movement in regard to sales volume that comes to a total of -66.70%.

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