DiaMedica Therapeutics Inc. (DMAC) Stock: Is This Biotech Stock Worth Your Investment?

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DiaMedica Therapeutics Inc. (DMAC) is headed up in the market today. The company, one that is focused in the biotech sector, is currently priced at $4.86 after gaining 5.65% so far in today’s session. As it relates to biotechnology companies, there are several aspects that have the ability to lead to gains in the market. News tends to be one of the biggest reasons for the movement. Here are the recent headlines associated with DMAC:

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Jun-21-19 07:18AM The Daily Biotech Pulse: ContraVir’s Volatile Ride Continues, Late-Stage Disappointment For Exelixis, Regeneron-Sanofi Breathe Easy
Jun-20-19 07:25AM The Daily Biotech Pulse: DiaMedica Reports Positive Data For Chronic Kidney Disease Drug, Eloxx Offering, IPO Deluge
Jun-19-19 04:04PM DiaMedica Therapeutics Announces Interim Results from Phase 1b Trial of DM199 in Chronic Kidney Disease Participants
May-21-19 08:34AM DiaMedica Therapeutics Announces Formation of Scientific Advisory Board for Kidney Disease
May-14-19 06:00AM DiaMedica Therapeutics, Inc. to Host Earnings Call

However, any time investors are making a decision to invest, prospective investors should take a look at much more than news, this is especially the case in the generally speculative biotech industry. Here’s what’s happening with DiaMedica Therapeutics Inc..

Recent Movement From DMAC

Although a move up on a single session, like what we’re seeing from DiaMedica Therapeutics Inc. might lead to excitement in some investors, a single session move by itself should not be the reason for a decision to, or not to, invest in a stock. It is always smart to dig into trends experienced by the stock just a single trading day. In the case of DMAC, here are the returns on investment that investors have experienced:

  • Past 7 Days – Over the last five trading sessions, DMAC has produced a change in value in the amount of 27.23%.
  • Monthly – The monthly performance from DiaMedica Therapeutics Inc. comes to 68.75%.
  • Past Quarter – Throughout the last quarter, the stock has generated a return on investment of 13.82%
  • Bi-Annually – Over the last 6 months, we’ve seen a performance that works out to 76.73% from the company.
  • This Year So Far – Since the close of last year DMAC has resulted in a return of 67.01%.
  • Full Year – Lastly, throughout the past year, we have seen movement of -59.55% out of DMAC. Throughout this period of time, the stock has sold at a high of -64.72% and a low price of 97.56%.

Ratios Worth Watching

Looking at a few key ratios having to do with a stock can give prospective traders a view of how risky and/or potentially profitable a an investment option might be. Here are some of the important ratios to look at when looking at DMAC.

Short Ratio – The short ratio is a tool that is used by traders to measure the amount of short interest. As the ratio climbs, it means that more investors are expecting that the stock is headed for declines. In general, biotech stocks can carry a higher short ratio. However, we also tend to see quite a few short squeezes in the space. Nonetheless, when it comes to DiaMedica Therapeutics Inc., the stock’s short ratio clocks in at 0.15.

Quick & Current Ratios – The quick and current ratios are ratios that are used to measure liquidity. Essentially, they measure If a company is able to pay its debts when they come due using current assets or quick assets. In the biotechnology sector, many companies rely on the continuation of investor support, the quick and current ratios can be upsetting. However, some good picks in the biotech industry come with strong quick and current ratios. As far as DMAC, the quick and current ratios add up to 0 and 0 respectively.  

Book To Share Value – The book to share value ratio compares the current book value of assets owned by the company to the price of shares. In this case, the book to share value ratio is 1.16.

Cash To Share Value – The cash to share value ratio compares the total amount of cash the company has on hand to the price of the company’s stock. Several clinical stage biotech companies struggle to keep cash on hand. So, if you’re interested in a stock in the biotechnology space, this is an important ratio to consider. In this case, the cash to share value is 0.

How Analysts Feel About DiaMedica Therapeutics Inc.

Although it’s not a smart idea to unknowingly follow the opinions of analysts, it is a smart idea to use their opinions when validating your own before making investment decisions in the biotechnology industry. Below are the recent moves that we have seen from analysts when it comes to DMAC.

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Apr-30-19 Initiated Dougherty & Company Buy $8
Mar-05-19 Initiated Lake Street Buy $9

Smart Money Follows Big Money

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 DMAC, here’s what we’re seeing:

  • Institutional Investors – Currently, institutional investors hold 13.72% of DiaMedica Therapeutics Inc.. On the other hand, it’s important to note that the ownership held by institutions has moved in the amount of 0 throughout the past quarter.
  • Investors On The Inside – When it comes to insiders, those close to the company currently hold 8.37% of DiaMedica Therapeutics Inc.. Their ownership of the company has seen a move of 0 throughout the past 3 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 12.01M shares of DiaMedica Therapeutics 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, DMAC has a float of 9.07M.

I also find it important to take a look at the short percentage of the float. Think about it, if a high portion of the float is sold short, the overall opinion among traders is that the company is going to fall. When it comes to DMAC, the short percentage of the float is currently 0.18%. Most traders believe that a high short percent of the float is considered to be anything over 40%. However, I have seen that anything over 26% is usually a play that comes with hefty risk.

What We’ve Seen In Financial Results

What have ween seen from DMAC in terms of financial results?Here’s what we’ve seen:

  • Analyst Expectations – As it stands, Wall St. analysts are expecting that DMAC will create earnings per diluted share that comes to 0, with 0 to be announced in the earnings announcement for the current quarter. Although this data is not earnings driven, because we’re chatting on the topic of Wall St. analysts, DiaMedica Therapeutics Inc. is presently rated a 0 considering a scale that ranges from 1 to 5 where 1 is the poorest possible Wall St. analyst rating and 5 is the best.
  • 5-Year Sales – Over the last 5 years, DiaMedica Therapeutics Inc. has announced a change in revenue that works out to be 0. Earnings per share through the last half decade have seen movement in the amount of 0.
  • Quarter Over Quarter – In terms of quarter over quarter earnings data, or Q/Q data as it is commonly explained in today’s society, DMAC has generated a change in earnings that comes to a total of 0. DiaMedica Therapeutics Inc. has also seen a change when it comes to sales that totals 0.

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