Orchard Therapeutics plc (ORTX) Stock: A Strong Pick In The Biotechnology Space?

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Orchard Therapeutics plc (ORTX) is working its way for to the top in the market today. The company, focused on the biotech industry, is presently priced at $15.00 after climbing 5.26% so far in today’s session. As it relates to biotech stocks, there are several aspects that have the ability to generate price movement in the market. News tends to be one of the biggest reasons for the movement. Here are the most recent headlines relating to ORTX:

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Jun-10-19 07:00AM Orchard Therapeutics to Present at the Goldman Sachs 40th Annual Global Healthcare Conference on June 12, 2019
Jun-06-19 07:37AM The Daily Biotech Pulse: Takeda Pulls Plug On Amyloidosis Drug Trial, Chiasma Preps For Drug Launch With New CEO Appointment, Orchard Prices Offering
Jun-05-19 07:59PM Orchard Therapeutics Announced Pricing of Public Offering
Jun-03-19 04:05PM Orchard Therapeutics Launches Proposed Public Offering
11:00AM Health Care Digest: Why California biotech thrives, small company looks to crash NASH bash, meeting up at BIO

However, any time investors are making a decision to invest, investors should look into much more than just news, this is especially the case in the speculative biotechnology industry. Here’s what’s happening with Orchard Therapeutics plc.

How ORTX Has Been Trending

While a move up on a single session, like what we’re seeing from Orchard Therapeutics plc might lead to excitement in some investors, a single session move alone shouldn’t be the reason for a decision to, or not to, invest in a stock. It’s always smart to look into trends for a period longer than a single session. As it relates to ORTX, below are the returns that investors have seen:

  • Past Seven Days – In the last 5 trading sessions, ORTX has generated a price change that amounts to -6.37%.
  • Past 30 Days – The monthly ROI from Orchard Therapeutics plc comes to -23.23%.
  • Past Three Months – Throughout the past three months, the company has generated a return that works out to -1.45%
  • Bi-Annually – In the previous six months, we’ve seen a performance of -0.60% from the stock.
  • YTD – Since the the last trading session of last year ORTX has generated a return on investment of -4.64%.
  • Annually – Finally, in the last year, investors have seen a change of 0 from ORTX. Over this period, the stock has traded at a high price of -30.68% and a low of 73.41%.

Ratios Worth Watching

Digging into a few key ratios having to do with a company can provide prospective traders a look of just how dangerous and/or potentially profitable a pick may be. Here are some of the most important ratios to think about when digging into ORTX.

Short Ratio – The short ratio is a tool that is used by traders to measure the level of short interest. As the short ratio heads up, it shows that more investors are expecting that the price of the stock is going to go down. In general, biotech stocks can have a higher short ratio. On the other hand, we also tend to see quite a few short squeezes in the industry. Nonetheless, in regard to Orchard Therapeutics plc, the stock’s short ratio is 10.35.

Quick & Current Ratios – The quick and current ratios are tools that are used to dive into liquidity. Basically, they measure the company’s abilities to pay its debts when they come due with only current assets or quick assets. Because many biotech companies rely on continued investor support, these ratios can look bad. However, quite a few gems in the biotechnology sector do have strong quick and current ratios. In terms of ORTX, the quick and current ratios come to 9.20 and 9.20 respectively.  

Book To Share Value – The book to share value compares the the share price to the book value of assets owned by the company. In this particular case, that ratio comes in at 3.30.

Cash To Share Value – Finally, the cash to share value ratio compares the total cash 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 biotech industry, this is a very important ratio to consider. As it relates to ORTX, the cash to share value comes to 3.37.

Analyst Opinions With Regard To Orchard Therapeutics plc

While it’s never a good idea to avoid doing your due diligence and blindly following the thoughts of analysts, it is a good idea to consider their opinions when validating your own when it comes to making investment decisions in the biotechnology sector. Below are the recent moves that we have seen from analysts as it relates to ORTX.

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Dec-17-18 Upgrade Goldman Neutral → Buy
Nov-26-18 Initiated Wedbush Outperform $25
Nov-26-18 Initiated JP Morgan Overweight $25
Nov-26-18 Initiated Goldman Neutral $18

Moves From Big Money Players

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 ORTX, here’s what we’re seeing:

Institutions own 57.70% of the company. Institutional interest has moved by 0.90% over the past three months. When it comes to insiders, those who are close to the company currently own 0 percent of ORTX shares. Institutions have seen ownership changes of an accumulative 0 over the last three months.

A Look 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 87.61M shares of Orchard Therapeutics plc 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, ORTX has a float of 55.34M.

I also find it important to take a look at the short percent. After all, when a large portion of the float available for trading is shorted, the overall feeling in the market is that the stock is going to fall hard. As far as ORTX, the percentage of the float that is currently being sold short is 3.37%. Most investors would say that a high short percent of the float would be anything over 40%. Nonetheless, I’ve calculated that a short ratio over 26% is generally a risky play.

What We’ve Seen In Financial Results

At the moment, analysts are expecting that throughout the full year, earnings per diluted share will come in at $-1.42. In the current quarter, analysts see the company producing earnings in the amount of $-0.36. Over the last 5 years, ORTX has generated revenue in the amount of $0 with earnings coming in at 0. On a quarter over quarter basis, earnings have seen movement of 26.10% and revenue has seen movement of 0.

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