Intercept Pharmaceuticals, Inc. (ICPT) Stock: A Biotechnology Stock That’s Headed Down

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Intercept Pharmaceuticals, Inc. (ICPT) is falling in the market in today’s trading session. The stock, one that is focused in the biotech space, is presently trading at $74.14 after a move down of -7.06% so far in today’s session. As it relates to biotechnology stocks, there are quite a few aspects that have the ability to cause movement in the market. One of the most common is news. Here are the recent trending headlines centered around ICPT:

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Jun-30-19 02:00PM Better Buy: Intercept Pharmaceuticals vs. CV Sciences
Jun-21-19 01:42PM An Intrinsic Calculation For Intercept Pharmaceuticals, Inc. (NASDAQ:ICPT) Suggests It’s 43% Undervalued
Jun-17-19 01:50PM ContraVir Moves Higher After NASH Drug Shows 100% Efficacy In Fibrosis Prevention
Jun-13-19 09:06PM Is Intercept Pharmaceuticals Inc (ICPT) A Good Stock To Buy?
Jun-12-19 06:27PM CymaBay Down on Dismal Interim Data From Mid-Stage NASH Study

However, any time investors are making a decision with regard to investing, prospective investors should look into far more than just news, this is especially the case in the highly speculative biotech space. Here’s what’s happening with Intercept Pharmaceuticals, Inc..

Returns That ICPT Investors Have Seen

While a move down on a single session, like what we’re seeing from Intercept Pharmaceuticals, Inc. might make some investors tremble, a single session decline by itself shouldn’t be the reason for a decision to, or not to, invest in a stock. It is generally a good idea to look at trends experienced by the stock just a single session. When it comes to ICPT, below are the movements that we’ve seen:

  • Weekly – Over the last week, ICPT has seen a change in price that amounts to -5.75%.
  • Monthly – The monthly performance from Intercept Pharmaceuticals, Inc. has been -5.76%.
  • Past Quarter – Over the past three months, the stock has generated a return on investment that works out to -37.38%
  • Past 6 Months – Throughout the last six months, investors have seen a change of -33.10% from the stock.
  • This Year So Far – Since the the last trading session of last year ICPT has produced a return of -26.44%.
  • Full Year – Finally, in the last year, we have seen performance in the amount of -21.28% out of ICPT. Throughout this period, the stock has traded at a high price of -44.56% and a low of 1.55%.

Key Ratios

Digging into a few ratios having to do with a company can give investors a view of just how dangerous and/or potentially profitable a stock pick might be. Here are some of the most important ratios to think about when digging into ICPT.

Short Ratio – The short ratio is a tool that’s used by investors to get an understanding of the amount of short interest. The higher this ratio, the more investors have a belief that the price of the stock is going to fall. Across the sector, biotech stocks tend to carry a higher short ratio. On the other hand, we also see quite a few short squeezes in the sector. Nonetheless, when it comes to Intercept Pharmaceuticals, Inc., the stock’s short ratio is 6.74.

Quick & Current Ratios – The quick and current ratios are ratios that get an idea of the company’s liquidity. Essentially, they measure the company’s abilities 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 quick and current ratios can look bad. Nonetheless, quite a few gems in the biotech sector do have strong current and quick ratios. In terms of ICPT, the quick and current ratios work out to 3.70 and 3.70 respectively.  

Book To Share Value – The book to share value ratio compares the current book value of assets owned by the company to the share price of the stock. In this case, that ratio is -1.85.

Cash To Share Value – The cash to share value ratio compares the total amount of cash the company has on hand to the value of the company’s stock. Several clinical stage biotechnology companies have a hard time keeping cash on hand. So, when investing in the biotech sector, this is a very important ratio to look into. In this case, the cash to share value is 10.97.

What Analysts Think About Intercept Pharmaceuticals, Inc.

Although it’s never a smart idea to blindly follow the thoughts of analysts, it is a good idea to use their thoughts when validating your own due diligence when it comes to making investment decisions in the biotechnology industry. Below are the most recent moves that we’ve seen from analysts as it relates to ICPT.

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Jun-25-19 Initiated Stifel Hold $89
May-10-19 Reiterated B. Riley FBR Buy $169 → $158
May-03-19 Upgrade Wells Fargo Market Perform → Outperform
Mar-01-19 Upgrade RBC Capital Mkts Sector Perform → Outperform $130
Feb-22-19 Downgrade SVB Leerink Mkt Perform → Underperform $70

Big Money And Intercept Pharmaceuticals, Inc.

An interesting fact that I have learned in my short time here is that smart money tends to follow the moves made by big money players. In general, investors that want to play it relatively safe will keep their eyes on moves made by institutions as well as insiders of the company. With that said, is big money flowing when it comes to ICPT? Here’s what’s happening:

Institutions own 73.40% of the company. Institutional interest has moved by 11.47% over the past three months. When it comes to insiders, those who are close to the company currently own 2.40% percent of ICPT shares. Institutions have seen ownership changes of an accumulative -4.27% over the last three months.

Looking 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 32.23M shares of Intercept 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, ICPT has a float of 25.08M.

Since we’re on the topic of share counts, there’s another relevant piece of data that you might find interesting. That would be the short percentage of the float. Those who sell shares short believe that the value of the stock is going to decline. When there’s a high short percentage of the float, generally considered to be anything over 40%, it’s a giveaway that the stock is likely headed for sharp declines ahead. Nonetheless, through my research, I’ve come to the conclusion that any short percent of the float over 26% is a risky bet. When it comes to ICPT, the short percent of the float is 21.66%.

Financial Performance

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

  • Analyst Expectations – Currently, Wall Street analysts expect that ICPT will generate earnings per diluted share of -9.13, with -2.58 being reported in the next financial report. Although this isn’t earnings driven, because we’re chatting on the topic of analysts, ICPT is presently graded as a 1.90 on a scale from 1 to 5 on which 1 is the poorest possible Wall Street analyst rating and 5 is the best possible.
  • 5-Year Sales – Throughout the last half decade, Intercept Pharmaceuticals, Inc. has reported a movement in sales volume that works out to 156.40%. Earnings in the last half decade have experienced movement in the amount of -23.60%.
  • Q/Q – when it comes to quarter over quarter earnings data, or Q/Q data as it is commonly explained in today’s society, the company has created a change in earnings that comes to a total of 5.90%. The company has also seen movement when it comes to revenue that totals 45.30%.

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