Geron Corporation (GERN) Stock: Why It’s Down

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Geron Corporation (GERN) is headed down in the market in today’s trading session. The company, focused in the biotech sector, is presently priced at $1.43 after heading down -5.92% so far in today’s session. In terms of biotech companies, there are quite a few aspects that have the potential to generate price movement in the market. One of the most common is news. Here are the most recent trending headlines associated with GERN:

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May-28-19 10:11AM Geron Stock Up More Than 50% in 2019 So Far: Here’s Why
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

Nonetheless, when making a decision with regard to investing, prospective investors should look into far more than news, this is especially the case in the generally speculative biotech industry. Here’s what’s happening in regard to Geron Corporation.

Recent Trends From GERN

Although a single session decline, like what we’re seeing from Geron Corporation may make some investors upset, that alone should not be the reason for a decision to, or not to, buy a company’s stock. It is always smart to look at trends just a single session. In the case of GERN, here are the movements that investors have experienced:

  • Past Seven Days – Over the past 7 days, GERN has generated a price change that amounts to -10.63%.
  • Past 30 Days – The performance from Geron Corporation over the past 30 days has been -23.94%.
  • Past 3 Months – Over the past three months, the company has generated a return of -8.92%
  • Past Six Months – Over the last six months, investors have seen a performance of -6.54% from the company.
  • YTD – Since the the last trading session of last year GERN has produced a ROI of 43.00%.
  • Full Year – Lastly, over the last year, investors have seen movement in the amount of -69.57% out of GERN. In this period of time, the stock has traded at a high price of -79.54% and a low of 49.79%.

Ratios Worth Paying Attention To

Digging into various key ratios associated with a stock can provide traders a view of how risky and/or rewarding a stock pick may be. Below are some of the key ratios to think about when looking at GERN.

Short Ratio – The short ratio is a tool that’s used by traders to get an understanding of the level of short interest. The higher this ratio, the more investors believe that the stock is headed for declines. Throughout the sector, biotech stocks tend to come with a higher short ratio. However, we also see a lot of short squeezes in the space. Nonetheless, with regard to Geron Corporation, the stock’s short ratio comes to 16.05.

Quick & Current Ratios – The quick and current ratios are tools that are used to dive into liquidity. Essentially, they measure If a company is able to cover its debts when they come due based on current assets or quick assets. In the biotech space, companies are heavily reliant on the continuation of support from investors, the current and quick ratios can be bad. Nonetheless, some good picks in the biotech industry come with great quick and current ratios. As far as GERN, the quick and current ratios work out to 24.90 and 24.90 respectively.  

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

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. Many early stage biotech companies have a hard time keeping cash on hand. So, if you’re considering an investment in a biotechnology stock, this is an important ratio to consider. In this case, the cash to share value ratio comes to 0.82.

How Analysts Feel About Geron Corporation

While it’s not a smart idea to unknowingly follow the thoughts of analysts, it is a smart idea to use their thoughts to validate your own opinions before making an investment decision in the biotechnology industry. 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

Big Money And Geron Corporation

An interesting fact that I have come to understand in my short time here has been that smart money tends to follow the moves made by big money investors. In general, investors that are looking to play it relatively safe will keep an eye on moves made by institutional investors as well as those on the inside. So, where is the big money as it relates to GERN? Here’s the data:

Institutions own 31.90% of the company. Institutional interest has moved by -6.23% 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.

What’s Going On With Share Counts?

Investors and traders tend to be interested in the counts of shares both available and outstanding. As it relates to Geron Corporation, currently there are 186.39M with a float of 185.62M. These data mean that out of the total of 186.39M shares of GERN currently in existence today, 185.62M are available to be traded on the public market.

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 23.32%.

Earnings

What have ween seen from GERN in terms of financial results?Here’s what you need to know:

  • Analyst Expectations – As it stands at the moment, Wall Street analysts have expectations that GERN will report EPS of -0.36, with -0.11 to be reported in the next financial report. Although this information is not associated with earnings, since we’re talking about analysts, Geron Corporation is presently graded as a 1.70 on a scale from 1 to 5 where 1 is the worst average Wall Street analyst rating and 5 is the best rating.
  • 5-Year Sales – Over the past 5 years, Geron Corporation has created a change in sales volume that adds up to -3.60%. Earnings over the last 5 years have generated a change of 12.50%.
  • Quarter Over Quarter – In terms of quarter over quarter earnings data, or Q/Q data as it is often represented in the human world, Geron Corporation has experienced a change in earnings that amounts to -20.50%. The company has also seen a change in terms of revenue that amounts to -66.70%.

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