NovaBay Pharmaceuticals, Inc. (NBY) Stock: A Strong Pick In The Biotech Industry?

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NovaBay Pharmaceuticals, Inc. (NBY) is making a move down in the market today. The stock, focused on the biotechnology space, is currently priced at $1.66 after heading down -19.81% so far today. When it comes to biotech companies, there are quite a few factors that have the potential to cause movement in the market. News tends to be one of the biggest reasons for the movement. Here are the recent headlines associated with NBY:

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Jun-10-19 01:52PM NovaBay’s stock halted for volatility 18 times as it rockets 557%
07:55AM NovaBay’s stock more than triples after Avenova made available on Amazon without prescription
06:50AM NovaBay Pharmaceuticals Launches Avenova® Direct on Amazon.com
May-21-19 04:05PM NovaBay Pharmaceuticals Receives NYSE American Communication
May-09-19 04:05PM NovaBay Pharmaceuticals Reports First Quarter 2019 Financial Results

Nonetheless, any time investors are making a decision with regard to investing, investors should focus on far more than news, especially in the speculative biotechnology sector. Here’s what’s going on with NovaBay Pharmaceuticals, Inc..

Performance Trends That We’ve Seen From NBY

While a move toward the top in a single session, like what we’re seeing from NovaBay Pharmaceuticals, Inc. may cause fear in some investors, that by itself shouldn’t be the reason for a decision to, or not to, invest in a company. It’s always important to dig into trends experienced by the stock beyond a single session. When it comes to NBY, below are the returns that investors have experienced:

  • Past 7 Days – In the past seven days, NBY has produced a change in value in the amount of 422.01%.
  • Past 30 Days – The monthly returns from NovaBay Pharmaceuticals, Inc. works out to 219.23%.
  • Quarterly – Over the last quarter, the company has produced a return on investment that works out to 16.75%
  • Bi-Annually – In the last 6 months, we’ve seen a change that works out to 36.07% from the company.
  • This Year So Far – Since the open of this year NBY has resulted in a ROI of 114.83%.
  • Full Year – Lastly, over the past full year, we have seen a change amounting to -34.44% from NBY. Over this period, the stock has traded at a high price of -58.91% and a low of 624.89%.

Key Ratios

Looking at various key ratios having to do with a company generally gives prospective traders a view of how dangerous and/or potentially profitable a pick might be. Here are a few of the key ratios to think about when looking at NBY.

Short Ratio – The short ratio is a measure of short interest. The higher this ratio, the more investors are expecting that the value of the stock is going to tumble. Across the sector, biotech stocks tend to come with a higher short ratio. However, we tend to see quite a few short squeezes in the sector. Nonetheless, when it comes to NovaBay Pharmaceuticals, Inc., it’s short ratio clocks in at 0.13.

Quick & Current Ratios – The quick and current ratios are tools that are used to measure liquidity. Essentially, they measure If a company is able to cover its debts as they mature using current assets or quick assets. In the biotechnology industry, companies rely heavily on continued support from investors, these ratios can seem damning. However, some better companies in the biotech sector do have strong quick and current ratios. When it comes to NBY, the quick and current ratios total up to 1.20 and 1.30 respectively.  

Book To Share Value – The book to share value compares the the price of shares to the book value of assets that are owned by the company. In the case of NovaBay Pharmaceuticals, Inc., that ratio works out to 0.07.

Cash To Share Value – The cash to share value comparison compares the total amount of cash the company has on hand to the value of shares. Several early stage biotech companies have a hard time keeping cash on hand. So, when investing in the biotechnology space, this is an important ratio to look into. When it comes to NBY, the cash to share value ratio works out to 0.12.

Analyst Opinions With Regard To NovaBay Pharmaceuticals, Inc.

Although it’s not a good idea to unknowingly follow the opinions of analysts, it is a good idea to consider their analysis when validating your own opinions when it comes to making an investment decision in the biotechnology space. Below are the recent moves that we’ve seen from analysts with regard to NBY.

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Jul-06-18 Reiterated H.C. Wainwright Buy $4
Nov-15-17 Reiterated Laidlaw Buy $10 → $8
Jun-05-17 Initiated ROTH Capital Buy $5.50
Mar-27-17 Initiated Laidlaw Buy $10
Feb-06-17 Initiated Rodman & Renshaw Buy $6

Big Money And NovaBay Pharmaceuticals, Inc.

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 NBY, here’s what we’re seeing:

Institutions own 1.10% of the company. Institutional interest has moved by 17.62% over the past three months. When it comes to insiders, those who are close to the company currently own 25.87% percent of NBY shares. Institutions have seen ownership changes of an accumulative -8.63% over the last three months.

What’s Going On With 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 23.67M shares of NovaBay 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, NBY has a float of 7.05M.

I also find it important to pay attention to the short percent. Think about it, when a large portion of the float is sold short, the overall opinion among traders is that the equity is headed for a dive. In regard to NBY, the percentage of the float that is shorted is 4.05%. Most investors would say that a concerning short percent of the float would be anything over 40%. However, I’ve calculated that any short ratio over 26% is likely a risky play.

Financial Results And Expectations

What have ween seen from NBY in terms of financial results?Here’s what you’re looking for:

  • Analyst Expectations – Currently, analysts have expectations that NBY will generate earnings per diluted share in the amount of -0.15, with -0.05 to be announced in the report for the current quarter. Although this data is not associated with earnings, since we’re talking on the topic of Wall Street analysts, NBY is presently rated a 2.50 when rated on a scale from 1 to 5 on which 1 is the poorest Wall Street analyst grade and 5 is the best possible.
  • 5-Year Sales – Over the last 5 years, NovaBay Pharmaceuticals, Inc. has generated a movement in revenue in the amount of 29.20%. Earnings per share in the past half decade have experienced movement in the amount of 48.30%.
  • Quarter Over Quarter – when it comes to quarter over quarter earnings data, or Q/Q data as it is generally explained in the human world, NBY has seen a change in earnings in the amount of -87.00%. NovaBay Pharmaceuticals, Inc. has also moved the needle with regard to sales volume that amounts to -48.30%.

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