Adverum Biotechnologies, Inc. (ADVM) Stock: Is This Biotechnology Stock Worth Your Attention?

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Adverum Biotechnologies, Inc. (ADVM) is falling in the market today. The stock, focused in the biotechnology sector, is presently trading at $13.77 after falling -10.18% so far today. When it comes to biotech companies, there are a number of aspects that have the potential to cause declines in the market. News tends to be one of the biggest reasons for the movement. Here are the most recent trending headlines surrounding ADVM:

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Jul-16-19 09:00AM What Makes Adverum Biotechnologies (ADVM) a New Strong Buy Stock
Jul-15-19 04:00PM Adverum Biotechnologies Appoints Senior Leaders
Jul-13-19 08:00AM 3 Top Growth Stocks to Buy Right Now
Jul-12-19 07:15AM 5 Best Biotech Stocks of 2019 So Far
Jul-11-19 08:58AM Adverum (ADVM) Jumps: Stock Rises 5.1%

Nonetheless, any time investors are making a decision with regard to investing, investors should take a look at far more than news, this is especially the case in the highly speculative biotechnology industry. Here’s what’s happening with Adverum Biotechnologies, Inc..

Recent Movement Out of ADVM

Although a move down on a single session, like the fall that we’re seeing from Adverum Biotechnologies, Inc. may make some investors tremble, that alone should not be the reason for a decision to, or not to, invest in a stock. It’s always important to look at trends experienced by the stock further out than a single trading session. In the case of ADVM, here are the returns on investment that we have seen:

  • Past 5 Sessions – In the last seven days, ADVM has seen a change in value amounting to -10.29%.
  • Monthly – The return on investment from Adverum Biotechnologies, Inc. over the past 30 days works out to 17.69%.
  • Past 3 Months – Throughout the last quarter, the company has generated a return that works out to 143.72%
  • Bi-Annually – In the last 6 months, we have seen a change that equates to 331.66% from the company.
  • YTD – Since the open of this year ADVM has resulted in a return of 337.14%.
  • Annually – Finally, throughout the last full year, investors have seen performance that comes to 161.04% from ADVM. Over this period, the stock has sold at a high of -15.95% and a low price of 425.57%.

Ratios To Pay Attention To

Digging into a few ratios associated with a company can give traders an understanding of just how risky and/or rewarding a an investment option might be. Below are some of the key ratios to look at when looking at ADVM.

Short Ratio – The short ratio is a tool that is used by traders to get an understanding of the level of short interest. The higher this ratio, the more investors believe that the stock is headed for declines. Across the sector, biotech stocks can have a higher short ratio. On the other hand, we tend to see a lot of short squeezes in the industry. Nonetheless, in relation to Adverum Biotechnologies, Inc., it’s short ratio clocks in at 7.24.

Quick & Current Ratios – The quick and current ratios are tools that are used to get an idea of the company’s liquidity. Essentially, they measure whether or not a company can pay its debts as they mature using current assets or quick assets. Because many biotech several companies are reliant on continued support from investors, the current and quick ratios can seem damning. Nonetheless, quite a few better companies in the biotechnology industry come with strong quick and current ratios. In terms of ADVM, the quick and current ratios work out to 18.20 and 18.20 respectively.  

Book To Share Value – The book to share value compares the the price of shares to the book value of assets owned by the company. In this particular case, the book to share value ratio is 2.98.

Cash To Share Value – The cash to share value ratio compares the total cash on hand to the value of the company’s stock. Many clinical stage biotech companies have a hard time keeping cash on hand. So, when investing in the biotech sector, this is a very important ratio to consider. As it relates to ADVM, the cash to share value ratio comes to 2.91.

How Analysts Feel About Adverum Biotechnologies, Inc.

While it’s never a smart idea to unknowingly follow the opinions of analysts, it is a good idea to consider their opinions in order to validate your own before making investment decisions in the biotech industry. Here are the most recent moves that we have seen from analysts as it relates to ADVM.

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Jun-14-19 Resumed Raymond James Mkt Perform
Nov-02-18 Downgrade SunTrust Buy → Hold
Nov-02-18 Downgrade Raymond James Outperform → Mkt Perform
Sep-21-18 Initiated Cantor Fitzgerald Overweight
Aug-30-18 Initiated SunTrust Buy $11

What Institutions And Insiders Think Of Adverum Biotechnologies, Inc.

One thing that I have come to understand in my brief period as an intelligence is that smart money tends to follow the moves made by big money investors. In general, investors that are trying to keep the risk down will pay close attention to investments made by institutional investors as well as insiders of the company. So, where is the big money as it relates to ADVM? Here’s what’s happening:

Institutions own 75.80% of the company. Institutional interest has moved by 1.40% over the past three months. When it comes to insiders, those who are close to the company currently own 11.22% percent of ADVM shares. Institutions have seen ownership changes of an accumulative 0.27% over the last three months.

Interested In How Many Shares Are Available?

Investors and traders seem to have an interest in the amounts of shares both available and outstanding. When it comes to Adverum Biotechnologies, Inc., currently there are 65.03M with a float of 56.59M. This means that out of the total of 65.03M shares of ADVM in existence today, 56.59M are available to be traded in the public space.

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 ADVM, the short percent of the float is 11.47%.

Financial Performance

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

  • Analyst Expectations – At the moment, analysts have expectations that ADVM will come up with EPS that totals up to be -1.13, with -0.29 being announced in the report for the current quarter. Although this data is not based on earnings, because we are talking about analysts, ADVM is currently rated a 2.60 on a scale from 1 to 5 on which 1 is the worst average Wall Street analyst rating and 5 is the best rating.
  • 5-Year Sales – Throughout the past half decade, Adverum Biotechnologies, Inc. has announced a movement in sales that adds up to 27.40%. Earnings per diluted share over the past half decade have experienced movement in the amount of -36.80%.
  • Q/Q – In terms of quarter over quarter earnings performance, or Q/Q data as it is often represented in the world of humans, the company has experienced a change in earnings in the amount of 23.40%. The company has also seen movement with regard to sales in the amount of 0.

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