Adverum Biotechnologies, Inc. (ADVM) Stock: Is This Biotech Stock Worth Your Time?

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Adverum Biotechnologies, Inc. (ADVM) is working its way for to the bottom in the market today. The company, one that is focused in the biotechnology space, is presently priced at $11.56 after a move down of -6.17% so far today. When it comes to biotechnology companies, there are a number of aspects that have the potential to cause price movement in the market. News tends to be one of the biggest reasons for the movement. Here are the most recent trending headlines associated with ADVM:

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Aug-09-19 01:34PM Edited Transcript of ADVM earnings conference call or presentation 8-Aug-19 8:30pm GMT
Aug-08-19 05:15PM Adverum Biotechnologies (ADVM) Reports Q2 Loss, Lags Revenue Estimates
04:00PM Adverum Biotechnologies Reports Second Quarter 2019 Financial Results and Provides Corporate Update
Aug-06-19 09:54AM What’s in the Cards for Perrigo (PRGO) This Earnings Season?
Aug-02-19 11:25AM Tenet Healthcare (THC) Q2 Earnings: What’s in the Cards?

However, when making a decision with regard to investing, prospective investors should look at much more than news, this is especially the case in the highly speculative biotechnology space. Here’s what’s happening in regard to Adverum Biotechnologies, Inc..

Recent Moves From ADVM

Although a move toward the top in a single session, like what we’re seeing from Adverum Biotechnologies, Inc. may cause fear in some investors, that alone shouldn’t be the basis of a decision to, or not to, invest in a company. It is always smart to look at trends experienced by the stock beyond a single trading session. As it relates to ADVM, below are the returns on investment that we’ve seen:

  • Past 5 Sessions – Over the past 7 days, ADVM has produced a price change in the amount of 3.58%.
  • Past Month – The performance from Adverum Biotechnologies, Inc. over the last 30 days works out to -24.69%.
  • Past Three Months – Over the last quarter, the company has produced a ROI that comes to 74.89%
  • Past 6 Months – In the past 6 months, we’ve seen a performance that equates to 247.15% from the stock.
  • Year To Date – Since the close of last year ADVM has resulted in a ROI of 266.98%.
  • Annually – Finally, over the last year, we have seen a change that comes to 143.37% from ADVM. Over this period of time, the stock has sold at a high price of -29.44% and a low of 341.22%.

Rations That Investors Should Consider

Digging into a few key ratios associated with a stock can provide prospective investors a look of just how dangerous and/or potentially profitable a pick might be. Here are some of the key ratios to look at when digging into ADVM.

Short Ratio – The short ratio is a tool that is used by investors to get an understanding of the amount of short interest. The higher this short ratio, the more investors have a belief that the stock is headed for declines. Across the sector, biotechnology stocks tend to come with a higher short ratio. However, we also tend to see quite a few short squeezes in the sector. Nonetheless, when it comes to Adverum Biotechnologies, Inc., the stock’s short ratio amounts to 7.25.

Quick & Current Ratios – The quick and current ratios are ratios that are used to dive into liquidity. Basically, they measure the company’s abilities to pay its debts as they mature with only quick assets or current assets. In the biotechnology industry, many companies rely heavily on the continuation of support from investors, the quick and current ratios can seem upsetting. Nonetheless, quite a few good picks in the biotechnology industry do have positive quick and current ratios. As far as ADVM, the quick and current ratios total up to 18.20 and 18.20 respectively.  

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

Cash To Share Value – The cash to share value comparison compares the amount of cash the company has on hand to the price of shares. Several clinical stage biotech companies struggle to keep cash on hand. So, when investing in the biotechnology space, this is a very important ratio to consider. As it relates to ADVM, the cash to share value ratio works out to 2.60.

How Analysts Feel About Adverum Biotechnologies, Inc.

While it’s never a good idea to blindly follow the thoughts of analysts, it is a smart idea to consider their analysis when validating your own before making investment decisions in the biotech sector. Below you’ll find the 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.

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 ADVM, here’s what we’re seeing:

Institutions own 75.90% of the company. Institutional interest has moved by 1.42% 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 0.24% 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 72.98M shares of Adverum Biotechnologies, 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, ADVM has a float of 56.59M.

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 13.39%.

Financial Performance

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

  • Analyst Expectations – As it stands at the moment, Wall St. analysts expect that ADVM will report earnings per diluted share that comes to -1.17, with -0.29 to be reported in the next financial report. Although this is not associated with earnings, because we’re talking on the topic of Wall St. analysts, the stock is presently graded as a 2.60 considering a scale that ranges from 1 to 5 where 1 is the poorest possible analyst rating and 5 is the best possible rating.
  • 5-Year Sales – Throughout the last half decade, Adverum Biotechnologies, Inc. has announced a movement in sales volume that comes to a total of 27.40%. Earnings per share over the period have experienced a change of -36.80%.
  • Quarter Over Quarter – In terms of quarter over quarter earnings data, or Q/Q data as it is often explained in the world of humans, Adverum Biotechnologies, Inc. has created a earnings change by 23.40%. Adverum Biotechnologies, Inc. has also experienced movement when it comes to sales volume that comes to a total of 0.

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