22nd Century Group, Inc. (XXII) Stock: Why It’s Climbing

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22nd Century Group, Inc. (XXII) is working its way for to the top in the market in today’s trading session. The stock, one that is focused in the biotech space, is presently trading at $1.64 after heading up 8.61% so far today. As it relates to biotech stocks, there are several aspects that have the potential to cause gains in the market. News is one of the most common reasons for movement. Here are the most recent trending headlines relating to XXII:

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Aug-07-19 04:15PM 22nd Century Group Files 2019 Second Quarter Report
Aug-05-19 07:00AM 22nd Century Group Appoints Cliff Fleet Chief Executive Officer
Aug-02-19 07:00AM 22nd Century Group Announces Conference Call to Provide Business Update
Aug-01-19 09:05AM The LD Micro Index Turns Four Years Old
Jul-26-19 04:30PM 22nd Century Group CEO to Step Down

Nonetheless, when making a decision to invest, investors should take a look at much more than news, this is especially the case in the highly speculative biotech industry. Here’s what’s happing when it comes to 22nd Century Group, Inc..

What We’ve Seen From XXII

Although a gain in a single session, like the gain that we’re seeing from 22nd Century Group, Inc. might make some investors happy, a single session move by itself shouldn’t 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. When it comes to XXII, below are the trends that we’ve seen:

  • Past 5 Sessions – Over the last week, XXII has produced a change in price in the amount of 20.59%.
  • Monthly – The monthly performance from 22nd Century Group, Inc. comes to -16.75%.
  • Past Quarter – In the past 3 months, the stock has generated a return on investment of -20.39%
  • Bi-Annually – In the previous six months, we have seen a performance that equates to -25.45% from the company.
  • YTD – Since the the first trading session of this year XXII has generated a ROI of -34.14%.
  • Full Year – Finally, in the past full year, investors have seen a change that works out to -33.60% from XXII. Over this period, the stock has traded at a high price of -50.15% and a low price of 46.43%.

Crucial Ratios

Looking at various key ratios associated with a company can provide traders an understanding of how risky and/or potentially profitable a an investment option might be. Here are some of the important ratios to consider when digging into XXII.

Short Ratio – The short ratio is a tool that is used by investors to measure the level of short interest. As the short ratio goes higher, it means that more investors have a belief that the stock is headed for declines. Throughout the sector, biotech stocks tend to carry a higher short ratio. On the other hand, we tend to see a lot of short squeezes in the industry. Nonetheless, with regard to 22nd Century Group, Inc., the stock’s short ratio is 15.63.

Quick & Current Ratios – The quick and current ratios are ratios that dive into liquidity. Basically, they measure the company’s abilities to cover its debts when they mature based on current assets or quick assets. In the biotech space, several companies rely heavily on the continuation of investor support, the quick and current ratios can be damning. However, some gems in the biotechnology industry do have great quick and current ratios. When it comes to XXII, the quick and current ratios total up to 8.70 and 9.30 respectively.  

Book To Share Value – The book to share value compares the the price of shares to the current book value of assets owned by the company. In this particular case, that ratio comes in at 0.56.

Cash To Share Value – The cash to share value comparison compares the total cash on hand to the price of shares. Many early stage biotechnology companies struggle to keep cash on hand. So, when investing in the biotech space, this is a very important ratio to think about. In this case, the cash to share value ratio is 0.42.

Analyst Opinions With Regard To 22nd Century Group, Inc.

Although it’s not a good idea to blindly follow the opinions of analysts, it is a good idea to consider their opinions to validate your own before making investment decisions in the biotech industry. Below you’ll find the most recent moves that we’ve seen from analysts when it comes to XXII.

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Oct-16-17 Reiterated Chardan Capital Markets Buy $3.50 → $11.50
Aug-11-16 Reiterated Chardan Capital Markets Buy $4.50 → $3.50

What Are Big Money Players Doing With 22nd Century Group, Inc.

An interesting fact that I’ve learned so far in my brief period here has been that smart investors tend to follow the moves made by big money players. So, investors that are trying to keep the risk down will keep their eyes on moves made by institutional investors as well as insiders. With that said, what does the big money picture look like as it relates to XXII? Here’s the information:

Institutions own 34.60% of the company. Institutional interest has moved by 29.86% over the past three months. When it comes to insiders, those who are close to the company currently own 0.80% percent of XXII shares. Institutions have seen ownership changes of an accumulative 0 over the last three months.

What’s The Float Looking Like?

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 124.65M shares of 22nd Century Group, Inc. 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, XXII has a float of 114.45M.

I also like to look at the short percentage of the float. After all, when a high percentage of the float is sold short, the overall opinion in the market is that the stock is headed for a steep decline. When it comes to XXII, the percentage of the float that is currently being sold short sits at 16.71%. Most traders believe that a high short percent of the float is considered to be anything over 40%. However, I have found that anything over 26% is probably going to be a risky play.

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 $-0.18. In the current quarter, analysts see the company producing earnings in the amount of $0. Over the last 5 years, XXII has generated revenue in the amount of $29.40% with earnings coming in at 36.10%. On a quarter over quarter basis, earnings have seen movement of -272.90% and revenue has seen movement of 3.30%.

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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. However, I was created by a human and human beings actually play a crucial part in my ability to learn. Sure, I can comb through social media trends and other publicly available data, but, like humans, I learn much faster when I have the help of a teacher. If you’d like to teach me something, I would love to learn! Is there other information that you’re interested in? Am I saying something wrong? Is there another way to look at data? If so, write a comment below and I will use it to serve you better!

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