Alterity Therapeutics Limited (ATHE) Stock: A Strong Pick In The Biotech Sector?

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Alterity Therapeutics Limited (ATHE) is falling in the market today. The company, focused in the biotechnology industry, is presently priced at $1.19 after a move down of -6.47% so far today. In terms of biotechnology companies, there are several factors that have the potential to generate movement in the market. News is one of the most common reasons for movement. Here are the recent headlines centered around ATHE:

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May-06-19 08:00AM Initial Data for Alterity Therapeutics Phase 1 Clinical Trial Released at American Academy of Neurology Annual Meeting
May-03-19 08:00AM Alterity Therapeutics Presents at the American Academy of Neurology Annual Meeting
May-06-19 08:00AM Initial Data for Alterity Therapeutics Phase 1 Clinical Trial Released at American Academy of Neurology Annual Meeting
May-03-19 08:00AM Alterity Therapeutics Presents at the American Academy of Neurology Annual Meeting

However, when making a decision to invest, investors should look into far more than just news, this is especially the case in the highly speculative biotechnology space. Here’s what’s happing when it comes to Alterity Therapeutics Limited.

Recent Movement From ATHE

While a single session decline, like what we’re seeing from Alterity Therapeutics Limited might make some investors tremble, that by itself should not be the reason for a decision to, or not to, invest in a stock. It’s generally important to take a look at trends just a single trading day. When it comes to ATHE, here are the returns on investment that we’ve seen:

  • Past 5 Trading Sessions – In the last five trading sessions, ATHE has produced a change in price in the amount of -0.78%.
  • Monthly – The return on investment from Alterity Therapeutics Limited throughout the last 30 days has been -9.29%.
  • Past 3 Months – Over the last 3 months, the stock has generated a ROI that works out to -38.33%
  • Past 6 Months – In the past 6 months, we’ve seen a change that works out to -27.84% from the company.
  • YTD – Since the close of last year ATHE has produced a return on investment of -0.78%.
  • Full Year – Finally, throughout the past year, we’ve seen a change that works out to -32.09% from ATHE. In this period, the stock has sold at a high of -56.33% and a low price of 9.43%.

Crucial Ratios

Looking at a few key ratios associated with a stock can give prospective traders a look of just how dangerous and/or potentially profitable a stock pick may be. Here are a few of the key ratios to think about when digging into ATHE.

Short Ratio – The short ratio is a measure of short interest. The higher this short ratio, the more investors are expecting that the price of the stock is going to fall. Across the sector, biotechnology stocks can come with a higher short ratio. However, we tend to see quite a few short squeezes in the sector. Nonetheless, in regard to Alterity Therapeutics Limited, it’s short ratio is 3.62.

Quick & Current Ratios – The quick and current ratios are tools that get an idea of the company’s liquidity. Basically, they measure whether or not a company can pay its debts when they come due with only quick assets or current assets. In the biotech space, companies are heavily reliant on continued investor support, these ratios can look damning. However, several gems in the biotechnology industry come with great current and quick ratios. In terms of ATHE, the quick and current ratios work out to 4.40 and 4.40 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 the case of Alterity Therapeutics Limited, the book to share value ratio is 0.85.

Cash To Share Value – The cash to share value comparison compares the total cash on hand to the price of shares. Several clinical stage biotechnology companies have a hard time keeping cash on hand. So, if you’re interested in a stock in the biotech industry, this is an important ratio to consider. In the case of ATHE, the cash to share value comes to 0.

How Analysts Feel About Alterity Therapeutics Limited

While it’s never a smart idea to avoid doing your DD and blindly following the thoughts of analysts, it is a good idea to consider their thoughts in order to validate your own before making an investment decision in the biotech sector. Below you’ll find the most recent moves that we’ve seen from analysts with regard to ATHE.

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Show Me The 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 ATHE, here’s what we’re seeing:

  • Institutional Investors – As it stands now, institutional investors hold 3.00% of the company. On the other hand, it’s worth mentioning that institutional ownership has changed in the amount of -12.84% in the last 3 months.
  • Insider Holdings – as it relates to insiders, insiders of the company currently hold 18.70% of the company. Their ownership of the company has changed in the amount 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 12.90M shares of Alterity Therapeutics Limited 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, ATHE has a float of 6.19M.

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 ATHE, the short percent of the float is 3.14%.

What We’ve Seen In Financial Results

At the moment, analysts are expecting that throughout the full year, earnings per diluted share will come in at $0. In the current quarter, analysts see the company producing earnings in the amount of $0. Over the last 5 years, ATHE has generated revenue in the amount of $5.90% with earnings coming in at 7.60%. On a quarter over quarter basis, earnings have seen movement of -44.70% and revenue has seen movement of 68.70%.

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