Aerie Pharmaceuticals, Inc. (AERI) Stock: Is This Biotech Stock Worth Your Consideration?


Aerie Pharmaceuticals, Inc. (AERI) is headed down in the market today. The company, one that is focused in the biotechnology sector, is currently trading at $32.26 after a move down of -5.28% so far today. As it relates to biotech companies, there are a number of factors that have the ability to generate movement in the market. One of the most common is news. Here are the most recent headlines relating to AERI:

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Jun-11-19 07:30AM Aerie Pharmaceuticals to Present at Two Upcoming Investor Conferences
Jun-06-19 01:58PM Does Aerie Pharmaceuticals, Inc. (NASDAQ:AERI) Have A Particularly Volatile Share Price?
09:31AM Why Is Aerie (AERI) Down 10.2% Since Last Earnings Report?
Jun-05-19 02:45PM Edited Transcript of AERI earnings conference call or presentation 7-May-19 9:00pm GMT
May-28-19 07:30AM Aerie Pharmaceuticals to Present at the Jefferies 2019 Healthcare Conference

However, any time investors are making an investing decision, investors should focus on far more than news, this is especially the case in the speculative biotechnology sector. Here’s what’s happening with Aerie Pharmaceuticals, Inc..

Returns That AERI Investors Have Seen

Although a decline in a single session, like what we’re seeing from Aerie Pharmaceuticals, Inc. might cause fear in some investors, a single session move alone shouldn’t be the basis of a decision to, or not to, invest in a stock. It’s always smart to dig into trends for a period longer than a single session. When it comes to AERI, here are the returns that we have seen:

  • Weekly – In the last week, AERI has seen a change in price in the amount of -12.65%.
  • Past 30 Days – The monthly ROI from Aerie Pharmaceuticals, Inc. works out to -17.66%.
  • Quarterly – Over the last quarter, the company has produced a return on investment that works out to -32.75%
  • Past 6 Months – Throughout the last 6 months, we have seen a performance that works out to -19.45% from the company.
  • This Year So Far – Since the the last trading session of last year AERI has produced a return of -10.64%.
  • Full Year – Finally, in the last year, investors have seen performance in the amount of -49.28% from AERI. Throughout this period, the stock has sold at a high price of -56.84% and a low price of 0.25%.

Ratios Worth Watching

Looking at various ratios having to do with a stock generally gives investors a look of just how dangerous and/or rewarding a an investment option might be. Here are some of the key ratios to think about when digging into AERI.

Short Ratio – The short ratio is a measure of short interest. As the ratio heads up, it shows that more investors are expecting that the stock is going to tumble. Throughout the sector, biotech stocks can come with a higher short ratio. However, we also see a lot of short squeezes in the space. Nonetheless, as it relates to Aerie Pharmaceuticals, Inc., it’s short ratio is 6.90.

Quick & Current Ratios – The quick and current ratios are ratios that get an idea of the company’s liquidity. Essentially, they measure If a company is able to pay its debts when they mature with only current assets or quick assets. Because many biotech several companies are reliant on the continuation of investor support, the current and quick ratios can be bad. Nonetheless, some better companies in the biotechnology sector come with positive current and quick ratios. As far as AERI, the quick and current ratios total up to 3.30 and 3.50 respectively.  

Book To Share Value – The book to share value ratio compares the value of assets currently owned by the company to the share price. In this case, the book to share value ratio equates to 4.24.

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. Many early stage biotechnology companies have a hard time keeping cash on hand. So, if you’re interested in a stock in the biotech space, this is a very important ratio to consider. When it comes to AERI, the cash to share value ratio works out to 0.

How Analysts Feel About Aerie Pharmaceuticals, Inc.

Although it’s not a smart idea to avoid doing your due diligence and blindly following the opinions of analysts, it is a smart idea to consider their analysis to validate your own before making investment decisions in the biotechnology sector. Here are the most recent moves that we’ve seen from analysts when it comes to AERI.

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Mar-21-19 Initiated Piper Jaffray Overweight $80
Jul-13-18 Reiterated Needham Buy $76 → $86
Feb-16-18 Resumed H.C. Wainwright Buy $78
Jan-26-18 Initiated Seaport Global Securities Buy $78
Oct-24-17 Initiated Guggenheim Buy $80

What Are Big Money Players Doing With Aerie Pharmaceuticals, Inc.

An interesting fact I have come to understand in my brief time alive, or somewhat alive is that good investors tend to follow the moves made by big money. In other words, investors that are looking to keep their investments relatively safe will keep their eyes on moves made by institutional investors as well as insiders of the company. With that said, is big money flowing as it relates to AERI? Here’s what’s going on:

  • Institutional Investors – As it stands now, institutions own 0 of AERI. On the other hand, it is worth noting that the ownership held by institutions has seen a move in the amount of -2.77% over the last 3 months.
  • Insider Moves – as it relates to insiders, members of the management team and others close to AERI currently own 1.70% of the company. Their ownership of the company has changed by -2.78% throughout the past quarter.

How Many Shares Of AERI 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 45.28M shares of Aerie Pharmaceuticals, 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, AERI has a float of 41.15M.

It’s also important to follow the short percent. Think about it, when a large portion of the float available for trading is sold short, the overall feeling in the market is that the company is going to fall. With regard to AERI, the short percentage of the float totals up to 9.75%. Most traders believe that a high short percent of the float is any percentage over 40%. In my research, I have calculated that any short ratio over 26% is generally a risky play.

What We’ve Seen In Financial Results

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

  • Analyst Expectations – Currently, Wall Street analysts have expectations that AERI will come up with EPS coming to a total of 0.52, with -0.80 being reported in the earnings announcement for the current quarter. Although this data isn’t tide to earnings, since we’re talking about analysts, Aerie Pharmaceuticals, Inc. is currently rated a 1.80 when rated on a scale from 1 to 5 on which 1 is the poorest possible Wall Street analyst rating and 5 is the best possible rating.
  • 5-Year Sales – In the past half decade, Aerie Pharmaceuticals, Inc. has reported a change in sales that works out to 0. Earnings per diluted share through the past 5 years have experienced movement in the amount of 2.60%.
  • Q/Q – In terms of quarter over quarter earnings data, or Q/Q data as it is often represented in the human world, Aerie Pharmaceuticals, Inc. has seen a change in earnings that comes to a total of -0.50%. AERI has also seen a change in terms of revenue that adds up to 0.

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