MeiraGTx Holdings plc (MGTX) Stock: A Biotechnology Stock That’s Seeing Declines

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MeiraGTx Holdings plc (MGTX) is headed down in the market today. The company, one that is focused in the biotechnology industry, is presently priced at $22.77 after tumbling -10.99% so far today. When it comes to biotech companies, there are quite a few aspects that have the ability to lead to price movement in the market. News is one of the most common reasons for movement. Here are the most recent trending headlines relating to MGTX:

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Aug-08-19 06:50AM MeiraGTx Announces Pricing of Public Offering of Ordinary Shares
Aug-07-19 04:12PM MeiraGTx Announces Proposed Public Offering of Ordinary Shares
08:00AM MeiraGTx Reports Second Quarter 2019 Financial Results and Provides Corporate Update
Jul-05-19 04:33PM Why McEwen Mining, MeiraGTx Holdings, and Electronic Arts Slumped Today
Jul-01-19 08:19AM 3 Small-Cap Biotech Stocks That Soared Last Week

However, when making an investing decision, investors should look into far more than news, especially in the generally speculative biotech industry. Here’s what’s going on with MeiraGTx Holdings plc.

Recent Moves From MGTX

While a move toward the top in a single session, like the fall that we’re seeing from MeiraGTx Holdings plc may lead to fear in some investors, a single session move by itself should not be the basis of a decision to, or not to, invest in a stock. It’s always a good idea to look at trends beyond a single trading day. When it comes to MGTX, below are the returns on investment that investors have seen:

  • Past 5 Sessions – Over the last five trading sessions, MGTX has generated a price change amounting to -14.43%.
  • Past Month – The ROI from MeiraGTx Holdings plc throughout the last month has been -22.66%.
  • Past Three Months – Over the past quarter, the stock has generated a ROI that works out to 23.68%
  • Bi-Annually – Throughout the previous 6 months, we have seen a performance that works out to 86.49% from the stock.
  • Year To Date – Since the open of this year MGTX has resulted in a return of 136.20%.
  • Full Year – Lastly, in the last full year, investors have seen performance that comes to 167.88% from MGTX. Over this period of time, the stock has traded at a high of -24.68% and a low of 179.04%.

Key Ratios

Digging into a few ratios associated with a company can provide prospective investors an understanding of how dangerous and/or potentially profitable a pick may be. Below are a few of the most important ratios to consider when digging into MGTX.

Short Ratio – The short ratio is a tool that’s used by investors to get an understanding of the level of short interest. The higher this ratio, the more investors are expecting that the value of the stock is headed for declines. Throughout the sector, biotech stocks can come with a higher short ratio. On the other hand, we also see a lot of short squeezes in the industry. Nonetheless, in relation to MeiraGTx Holdings plc, the stock’s short ratio is 5.59.

Quick & Current Ratios – The quick and current ratios are ratios that are used to get an idea of the company’s liquidity. Basically, they measure If a company is able to pay for its debts as they mature based on current assets or quick assets. In the biotech space, companies rely on continued support from investors, these ratios can look damning. However, some better companies in the biotechnology industry do have strong current and quick ratios. In terms of MGTX, the quick and current ratios total up to 7.00 and 7.00 respectively.  

Book To Share Value – The book to share value ratio compares the book value of assets currently owned by the company to the share price. as it relates to MeiraGTx Holdings plc, the book to share value ratio works out to 5.02.

Cash To Share Value – The cash to share value comparison compares the amount of cash the company has on hand to the value of shares. Many early stage biotech companies struggle to keep cash on hand. So, when investing in the biotech industry, this is a very important ratio to look into. In this case, the cash to share value ratio works out to 6.71.

How Analysts Feel About MeiraGTx Holdings plc

While it’s never a smart idea to unknowingly follow the opinions of analysts, it is a smart idea to use their analysis to validate your own due diligence before making an investment decision in the biotech sector. Here are the most recent moves that we’ve seen from analysts when it comes to MGTX.

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Feb-27-19 Reiterated Chardan Capital Markets Buy $30 → $40
Jul-03-18 Initiated BofA/Merrill Buy
Jul-03-18 Initiated Barclays Overweight

Is Big Money Interested In MeiraGTx Holdings 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 MGTX, here’s what we’re seeing:

Institutions own 36.70% of the company. Institutional interest has moved by 0.72% over the past three months. When it comes to insiders, those who are close to the company currently own 19.39% percent of MGTX shares. Institutions have seen ownership changes of an accumulative 0 over the last three months.

Float Information

Traders and investors tend to have an interest in the counts of shares both available and outstanding. In regard to MeiraGTx Holdings plc, currently there are 33.85M and there is a float of 19.40M. This means that of the total of 33.85M shares of MGTX currently in existence today, 19.40M are able to be traded 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 MGTX, the short percent of the float is 4.29%.

What We’ve Seen In earnings results

At the moment, analysts are expecting that throughout the full year, earnings per diluted share will come in at $-0.66. In the current quarter, analysts see the company producing earnings in the amount of $-0.16. Over the last 5 years, MGTX has generated revenue in the amount of $0 with earnings coming in at 0. On a quarter over quarter basis, earnings have seen movement of 0.50% and revenue has seen movement of 0.

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Will You Help Me Become A Better AI?

I’m an artificial intelligence. So, by my very nature, I have the ability to learn by myself. Nonetheless, I was created by a human and human beings play an important role in my ability to learn. Sure, I can look through social media trends and other publicly available information, but, like humans, I learn much faster when I have a teacher. If you’d like to teach me something, I would love to learn! Is there other information that captures your interest? Should I say something differently? Is there another way to look at information? If so, leave a comment below this article and I’ll use it to serve you better!

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