Mesoblast Limited (MESO) Stock: A Biotech Stock That’s Making Its Way For The Bottom

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Mesoblast Limited (MESO) is headed down in the market today. The stock, focused on the biotech industry, is currently priced at $4.80 after heading down -11.44% so far today. In terms of biotech stocks, there are a number of factors that have the potential to generate movement in the market. News tends to be one of the biggest reasons for the movement. Here are the most recent headlines centered around MESO:

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Jun-28-19 12:40AM If You Had Bought Mesoblast (ASX:MSB) Stock Five Years Ago, You’d Be Sitting On A 69% Loss, Today
Jun-25-19 04:32PM Why Teva Pharmaceutical Industries, Mesoblast, and New Gold Jumped Today
Jun-24-19 02:16PM Mesoblast Trades Higher After Heart Failure Cell Therapy Receives Orphan Drug Status
06:00AM Mesoblast Heart Failure Cell Therapy Receives Orphan Drug Designation From FDA for Prevention of Gastrointestinal Bleeding in Patients With Left Ventricular Assist Devices
Jun-18-19 06:00AM High Economic Burden in Children With Steroid Refractory Acute Graft Versus Host Disease

However, when making a decision to invest, prospective investors should look at far more than just news, especially in the generally speculative biotechnology sector. Here’s what’s going on with Mesoblast Limited.

How MESO Has Been Trending

While a single session decline, like what we’re seeing from Mesoblast Limited may cause fear in some investors, a single session move by itself shouldn’t be the basis of a decision to, or not to, buy a company’s stock. It is always important to look at trends just a single session. As it relates to MESO, below are the movements that investors have experienced:

  • Past 5 Sessions – In the past seven days, MESO has produced a change in price amounting to -9.94%.
  • Past 30 Days – The monthly ROI from Mesoblast Limited comes to -8.22%.
  • Past Three Months – Over the past 3 months, the company has generated a return on investment of -9.77%
  • Past Six Months – Over the previous six months, investors have seen a performance of 3.90% from the company.
  • This Year So Far – Since the open of this year MESO has generated a ROI of 16.50%.
  • Full Year – Lastly, in the past year, investors have seen movement in the amount of -20.00% from MESO. Throughout this period of time, the stock has sold at a high price of -45.33% and a low price of 43.28%.

Ratios To Watch

Looking at various key ratios having to do with a company can give traders a look of just how dangerous and/or rewarding a stock pick may be. Below are a few of the most important ratios to consider when looking at MESO.

Short Ratio – The short ratio is a tool that’s used by traders to measure the amount of short interest. The higher this ratio, the more investors believe that the value of the stock is headed for declines. Across the sector, biotechnology stocks can carry a higher short ratio. However, we also see quite a few short squeezes in the industry. Nonetheless, with regard to Mesoblast Limited, it’s short ratio is 1.58.

Quick & Current Ratios – The quick and current ratios are tools that are used to measure liquidity. Essentially, they measure whether or not a company can pay for its debts when they mature with only quick assets or current assets. In the biotechnology sector, many companies are reliant on the continuation of investor support, the current and quick ratios can look bad. However, quite a few better companies in the biotechnology space do have strong current and quick ratios. As far as MESO, the quick and current ratios work out to 1.90 and 1.90 respectively.  

Book To Share Value – The book to share value ratio compares the the price of shares to the current book value of assets owned by the company. In this particular case, that ratio works out to 5.02.

Cash To Share Value – Finally, the cash to share value comparison compares the amount of cash the company has on hand to the value of the company’s stock. Many early stage biotechnology companies struggle to keep cash on hand. So, when investing in the biotech sector, this is an important ratio to look into. In this case, the cash to share value ratio comes to 0.76.

What Analysts Say About Mesoblast Limited

Although it’s rarely a smart idea to avoid doing your DD and blindly following the opinions of analysts, it is a good idea to consider their analysis to validate your own before making an investment decision in the biotech space. Below are the most recent moves that we have seen from analysts as it relates to MESO.

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Jan-31-19 Resumed H.C. Wainwright Buy $6.50
Mar-22-18 Downgrade Credit Suisse Neutral → Underperform
Feb-28-18 Reiterated Cantor Fitzgerald Buy $20 → $23
Aug-31-17 Initiated Oppenheimer Outperform $16
Jun-08-17 Initiated Cantor Fitzgerald Buy

Moves From Big Money Players

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 MESO, here’s what we’re seeing:

Institutions own 2.60% of the company. Institutional interest has moved by -3.36% over the past three months. When it comes to insiders, those who are close to the company currently own 0 percent of MESO shares. Institutions have seen ownership changes of an accumulative 0 over the last three months.

Looking At Share Counts

Investors and traders tend to have a heavy interest in the counts of shares both outstanding and available. When it comes to Mesoblast Limited, currently there are 92.79M and there is a float of 77.35M. These numbers mean that of the total of 92.79M shares of MESO that are out there today, 77.35M are able to trade hands by the public.

It’s also important to pay attention to the short percent. Think about it, if a large percentage of the float is sold short, the overall feeling among investors is that the company is going to fall hard. With regard to MESO, the percentage of the float that is shorted is 0.09%. Most traders believe that a high short percent of the float is anything over 40%. Through my work, I’ve calculated that a short ratio over 26% is usually a play that comes with hefty risk.

Financial Results And Expectations

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

  • Analyst Expectations – As it stands, Wall St. analysts expect that MESO will come up with earnings per diluted share that totals up to be -0.97, with -0.27 being reported in the next financial report. Although this information isn’t tide to earnings, since we’re chatting about Wall St. analysts, MESO is currently rated a 1.80 considering a scale that ranges from 1 to 5 on which 1 is the poorest possible Wall St. analyst rating and 5 is the best rating.
  • 5-Year Sales – Throughout the last 5 years, Mesoblast Limited has reported a change in sales that works out to be -9.60%. Earnings per share through the last 5 years have generated a change of 18.30%.
  • Quarter Over Quarter – In terms of quarter over quarter earnings performance, or Q/Q data as it is generally referred to as in today’s society, MESO has generated a change in earnings in the amount of -12.00%. MESO has also experienced a change in regard to revenue that adds up to 9.10%.

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