Minerva Neurosciences, Inc. (NERV) Stock: Here’s Why It’s Tumbling

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Minerva Neurosciences, Inc. (NERV) is working its way for to the bottom in the market in today’s trading session. The stock, focused on the biotech space, is currently trading at $4.70 after a move down of -5.62% so far today. When it comes to biotech stocks, there are several aspects that have the potential to cause movement in the market. One of the most common is news. Here are the most recent headlines relating to NERV:

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May-29-19 08:30AM Minerva Neurosciences to Present at Jefferies 2019 Global Healthcare Conference on June 4, 2019
May-13-19 11:01AM Minerva Neurosciences Sinks To Lowest Level In A Year On Cloudy Midstage Trial Results For Depression Drug
08:15AM Minerva Neurosciences Announces Positive Top Line Results in Phase 2b Clinical Trial With Seltorexant (MIN-202) in Treatment of Depressed Patients With an Inadequate Response to SSRIs and SNRIs
May-10-19 09:29AM Edited Transcript of NERV earnings conference call or presentation 6-May-19 12:30pm GMT
May-07-19 02:06PM Calculating The Fair Value Of Minerva Neurosciences, Inc. (NASDAQ:NERV)

However, when making a decision with regard to investing, prospective investors should take a look at far more than news, this is especially the case in the generally speculative biotechnology sector. Here’s what’s going on with Minerva Neurosciences, Inc..

Performance Trends That We’ve Seen From NERV

While a move down on a single session, like what we’re seeing from Minerva Neurosciences, Inc. might 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’s always smart to look into trends further out than a single trading day. In the case of NERV, below are the returns that we’ve seen:

  • Past 7 Days – Throughout the past 5 trading sessions, NERV has produced a change in price in the amount of -9.27%.
  • Monthly – The monthly performance from Minerva Neurosciences, Inc. has been -31.98%.
  • Past Quarter – Throughout the last 3 months, the company has produced a return on investment that works out to -42.05%
  • Bi-Annually – In the past six months, we’ve seen a change that works out to -40.81% from the stock.
  • Year To Date – Since the close of last year NERV has resulted in a return on investment of -30.27%.
  • Annually – Lastly, throughout the past full year, investors have seen movement that comes to -44.71% from NERV. Throughout this period, the stock has traded at a high of -63.71% and a low price of -2.53%.

Ratios That Are Notable

Looking at various key ratios having to do with a company generally gives traders a look of just how dangerous and/or rewarding a pick may be. Below are some of the important ratios to think about when digging into NERV.

Short Ratio – The short ratio is a measure of short interest. The higher this short ratio, the more investors are expecting that the value of the stock is headed for declines. Throughout the sector, biotech stocks tend to carry a higher short ratio. On the other hand, we tend to see a lot of short squeezes in the sector. Nonetheless, when it comes to Minerva Neurosciences, Inc., the stock’s short ratio clocks in at 12.40.

Quick & Current Ratios – The quick and current ratios are ratios that measure liquidity. Essentially, they measure whether or not a company can pay for its debts as they mature using current assets or quick assets. Because many biotech many companies rely heavily on continued support from investors, the current and quick ratios can seem upsetting. Nonetheless, some gems in the biotechnology space do have positive quick and current ratios. When it comes to NERV, the quick and current ratios come to 11.60 and 11.60 respectively.  

Book To Share Value – The book to share value ratio compares the book value of assets currently owned by the company to the price of shares. In this case, the book to share value ratio comes in at 1.99.

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 shares. Several early stage biotech companies struggle to keep cash on hand. So, if you’re looking into a biotech stock, this is an important ratio to think about. In this case, the cash to share value ratio comes to 2.06.

What Analysts Say About Minerva Neurosciences, Inc.

Although it’s never a smart idea to unknowingly follow the opinions of analysts, it is a smart idea to consider their opinions when validating your own 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 NERV.

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May-31-19 Initiated H.C. Wainwright Buy
Sep-01-17 Initiated Citigroup Buy $11
Mar-06-17 Resumed Jefferies Buy $17
May-12-16 Resumed Jefferies Buy

Is Big Money Interested in Minerva Neurosciences, Inc.?

One thing I have come to understand in my short period on Earth has been that good investors tend to follow big money players. Usually, investors that are trying to keep their investments relatively safe will follow investments made by institutions as well as insiders. So, how does the big money flow in regard to NERV? Here’s what’s going on:

Institutions own 82.00% of the company. Institutional interest has moved by 1.04% over the past three months. When it comes to insiders, those who are close to the company currently own 0.80% percent of NERV shares. Institutions have seen ownership changes of an accumulative -35.00% over the last three months.

Interested In How Many Shares 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 38.48M shares of Minerva Neurosciences, 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, NERV has a float of 37.55M.

I also find it important to look at the short percentage of the float. Think about it, if a high portion of the float available for trading is shorted, the overall opinion in the market is that the equity is headed for a dive. With regard to NERV, the percentage of the float that is currently being sold short sits at 4.88%. Most traders believe that a concerning short percent of the float would be considered to be anything over 40%. In my research, I have found that a short ratio over 26% is generally a play that comes with hefty risk.

Earnings

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

  • Analyst Expectations – Currently, Wall St. analysts are expecting that the company will generate earnings per diluted share of -2.00, with -0.42 to be announced in the report for the current quarter. Although this data is not tide to earnings, because we’re chatting about Wall Street analysts, Minerva Neurosciences, Inc. is currently graded as a 0 on a scale from 1 to 5 on which 1 is the poorest Wall Street analyst rating and 5 is the best rating.
  • 5-Year Sales – In the past half decade, Minerva Neurosciences, Inc. has announced a change in sales volume that adds up to 0. EPS in the last half decade have generated a change of -48.60%.
  • Q/Q – when it comes to quarter over quarter earnings data, or Q/Q data as it is generally referred to as in the world of humans, the company has experienced a change in earnings that comes to a total of -26.70%. NERV has also experienced a change in terms of sales that comes to a total of 0.

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