Adaptimmune Therapeutics plc (ADAP) Stock: Why It’s Falling

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Adaptimmune Therapeutics plc (ADAP) is headed down in the market today. The company, focused on the biotechnology sector, is currently priced at $2.51 after tumbling -14.92% so far in today’s session. In terms of biotech stocks, there are quite a few factors that have the potential to cause price movement in the market. One of the most common is news. Here are the most recent trending headlines associated with ADAP:

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Aug-04-19 11:09AM Edited Transcript of ADAP earnings conference call or presentation 1-Aug-19 12:00pm GMT
Aug-01-19 10:24PM Adaptimmune Therapeutics (ADAP) Q2 2019 Earnings Call Transcript
07:15AM New Executive Team Announced at Adaptimmune
07:15AM Adaptimmune Reports Second Quarter 2019 Financial Results and Business Update
Jul-29-19 04:05PM Adaptimmune to Report Second Quarter 2019 Financial Results and Business Update on Thursday, August 1, 2019

However, when making a decision to invest, prospective investors should take a look at far more than just news, this is especially the case in the speculative biotechnology sector. Here’s what’s happening with Adaptimmune Therapeutics plc.

What We’ve Seen From ADAP

Although a decline in a single session, like what we’re seeing from Adaptimmune Therapeutics plc might make some investors upset, a single session decline alone should not be the basis of a decision to, or not to, invest in a company. It is generally smart to look at trends for a period longer than a single trading day. In the case of ADAP, here are the trends that we’ve seen:

  • Past 5 Sessions – In the last seven days, ADAP has generated a price change that amounts to -21.07%.
  • Past Month – The performance from Adaptimmune Therapeutics plc throughout the last month comes to -33.77%.
  • Past Three Months – In the last quarter, the company has produced a ROI of -45.91%
  • Past Six Months – Over the last 6 months, investors have seen a change of -50.40% from the stock.
  • This Year So Far – Since the the last trading session of last year ADAP has resulted in a return on investment of -56.35%.
  • Annually – Finally, throughout the last year, we’ve seen performance in the amount of -74.07% out of ADAP. In this period of time, the stock has traded at a high price of -82.74% and a low price of -11.93%.

Rations That Traders Should Consider

Looking at various ratios associated with a company generally gives investors an understanding of how dangerous and/or rewarding a stock pick might be. Below are some of the most important ratios to consider when looking at ADAP.

Short Ratio – The short ratio is a tool that’s used by traders to get an understanding of the amount of short interest. As the short ratio climbs, it means that more investors are expecting that the value of the stock is going to tumble. Across the sector, biotech stocks can have a higher short ratio. However, we also see quite a few short squeezes in the industry. Nonetheless, when it comes to Adaptimmune Therapeutics plc, it’s short ratio comes to 12.71.

Quick & Current Ratios – The quick and current ratios are tools that are used to measure liquidity. Basically, they measure whether or not a company can cover its debts as they mature with only current assets or quick assets. Because many biotech companies are reliant on the continuation of investor support, these ratios can seem bad. However, several good picks in the biotechnology space do have strong current and quick ratios. When it comes to ADAP, the quick and current ratios total up to 8.50 and 8.50 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. In this case, that ratio is 2.10.

Cash To Share Value – The cash to share value comparison compares the total amount of cash the company has on hand to the price of shares. Many clinical stage biotech companies struggle to keep cash on hand. So, if you’re looking into a stock in the biotech space, this is an important ratio to look into. In this case, the cash to share value works out to 1.37.

What Analysts Think About Adaptimmune Therapeutics plc

While it’s not a smart idea to avoid doing your DD and blindly following the opinions of analysts, it is a smart idea to use their analysis when validating your own thoughts when it comes to making an investment decision in the biotechnology space. Here are the most recent moves that we’ve seen from analysts with regard to ADAP.

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Aug-02-19 Downgrade Guggenheim Buy → Neutral
May-31-19 Initiated ROTH Capital Buy
May-30-19 Resumed Citigroup Buy
May-07-19 Downgrade SVB Leerink Outperform → Mkt Perform $12 → $5
Mar-17-17 Initiated Wells Fargo Market Perform

What Are Big Money Players Doing With Adaptimmune Therapeutics plc

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 ADAP, here’s what we’re seeing:

Institutions own 73.40% of the company. Institutional interest has moved by 0.20% over the past three months. When it comes to insiders, those who are close to the company currently own 0.22% percent of ADAP shares. Institutions have seen ownership changes of an accumulative 0.00% over the last three months.

What You Need To Know About Share Counts

Traders and investors seem to be interested in the total numbers of shares both outstanding and available. In regard to Adaptimmune Therapeutics plc, there are currently 123.07M with a float of 10.86M. These numbers mean that out of the total of 123.07M shares of ADAP currently in existence today, 10.86M are available to trade hands by the public.

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 ADAP, the short percent of the float is 33.66%.

Financial Results And Expectations

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

  • Analyst Expectations – As it stands, Wall St. analysts expect that ADAP will generate EPS in the amount of -1.15, with -0.32 to be announced in the report for the current quarter. Although this data isn’t based on earnings, because we’re talking on the topic of Wall St. analysts, the stock is presently graded as a 2.40 on a scale from 1 to 5 where 1 is the poorest possible Wall Street analyst grade and 5 is the best possible rating.
  • 5-Year Sales – Throughout the past 5 years, Adaptimmune Therapeutics plc has announced a change in revenue that comes to a total of 178.50%. Earnings through the period have experienced a change of -56.20%.
  • Quarter Over Quarter – when it comes to quarter over quarter earnings data, or Q/Q data as it is generally referred to as in the world of humans, ADAP has generated a change in earnings that comes to a total of -18.80%. ADAP has also moved the needle in terms of revenue in the amount of -98.30%.

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