Aerie Pharmaceuticals, Inc. (AERI) Stock: Here’s What’s Happening

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Aerie Pharmaceuticals, Inc. (AERI) is working its way for to the top in the market in today’s trading session. The company, focused in the biotechnology sector, is currently trading at $22.92 after a move up of 6.65% so far today. As it relates to biotechnology companies, there are several factors that have the potential to lead to movement in the market. One of the most common is news. Here are the recent headlines associated with AERI:

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Aug-08-19 04:08PM This Biotech Crashed On ‘Erroneous’ Report Plus 2 Stocks That Diverged
09:25AM Aerie (AERI) Beats on Q2 Earnings & Sales, Lowers Guidance
09:02AM Aerie Pharmaceuticals, Inc.’s (NASDAQ:AERI) Path To Profitability
04:05AM Edited Transcript of AERI earnings conference call or presentation 7-Aug-19 9:00pm GMT
01:50AM Aerie Pharmaceuticals, Inc. (AERI) Q2 2019 Earnings Call Transcript

However, any time investors are making a decision to invest, investors should focus on much more than just news, especially in the speculative biotechnology industry. Here’s what’s happing when it comes to Aerie Pharmaceuticals, Inc..

Recent Movement From AERI

While a move toward the top in a single session, like what we’re seeing from Aerie Pharmaceuticals, Inc. may lead to excitement in some investors, 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 experienced by the stock just a single session. As it relates to AERI, below are the returns that investors have seen:

  • Past 5 Sessions – Over the last seven days, AERI has produced a price change that amounts to 6.90%.
  • Past Month – The monthly returns from Aerie Pharmaceuticals, Inc. works out to -11.40%.
  • Past 3 Months – Throughout the past quarter, the stock has produced a return that comes to -47.30%
  • Past Six Months – In the past 6 months, we have seen a change of -46.78% from the stock.
  • YTD – Since the close of last year AERI has produced a return on investment of -36.51%.
  • Full Year – Finally, in the last full year, we’ve seen a change amounting to -65.01% from AERI. Over this period of time, the stock has sold at a high price of -65.25% and a low price of 10.25%.

Ratios Worth Watching

Digging into a few ratios having to do with a stock generally gives investors a view of how risky and/or rewarding a an investment option might be. Below are a few of the most important ratios to consider when looking at AERI.

Short Ratio – The short ratio is a measure of short interest. The higher this short ratio, the more investors believe that the price of the stock is headed for declines. Throughout the sector, biotechnology 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, in relation to Aerie Pharmaceuticals, Inc., the stock’s short ratio amounts to 7.60.

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 the company’s abilities to cover its debts when they mature with only quick assets or current assets. Because many biotech companies rely on continued support from investors, the current and quick ratios can look bad. However, quite a few better companies in the biotech sector come with strong current and quick ratios. As far as AERI, the quick and current ratios total up to 3.30 and 3.50 respectively.  

Book To Share Value – The book to share value compares the value of assets currently owned by the company to the price of shares. as it relates to Aerie Pharmaceuticals, Inc., the book to share value ratio equates to 4.24.

Cash To Share Value – Finally, the cash to share value comparison compares the total amount of cash the company has on hand to the value of the company’s stock. Several early stage biotech companies struggle to keep cash on hand. So, if you’re considering an investment in a biotech stock, this is an important ratio to consider. In the case of AERI, the cash to share value ratio works out to 0.

What Analysts Think About Aerie Pharmaceuticals, Inc.

Although it’s never a smart idea to unknowingly follow the thoughts of analysts, it is a smart idea to use their analysis in order to validate your own opinions before making an investment decision in the biotech industry. Here are the most recent moves that we have seen from analysts as it relates to AERI.

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Aug-08-19 Reiterated Needham Buy $74 → $54
Aug-08-19 Reiterated Cantor Fitzgerald Overweight $85 → $62
Mar-21-19 Initiated Piper Jaffray Overweight $80
Jul-13-18 Reiterated Needham Buy $76 → $86
Feb-16-18 Resumed H.C. Wainwright Buy $78

Show Me The Big Money

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 AERI, here’s what we’re seeing:

Institutions own 0 of the company. Institutional interest has moved by 3.03% over the past three months. When it comes to insiders, those who are close to the company currently own 1.70% percent of AERI shares. Institutions have seen ownership changes of an accumulative 0.00% over the last three months.

Interested In How Many Shares Are Available?

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 45.60M shares of Aerie Pharmaceuticals, 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, AERI has a float of 41.15M.

I also like to follow the short float. After all, when a high portion of the float available for trading is sold short, the overall feeling among investors is that the stock is headed for a dive. As far as it relates to AERI, the short percentage of the float is currently 13.84%. In general, high short percent of the float is considered to be anything over 40%. Nonetheless, I have found that a short percent of the float over 26% is generally a risky play.

What We’ve Seen In Financial Results

What have ween seen from AERI in terms of financial results?Here is the data:

  • Analyst Expectations – Currently, analysts have expectations that AERI will generate EPS in the amount of -0.12, with -0.86 being announced in the earnings report for the current quarter. Although this information isn’t tide to earnings, because we are chatting on the topic of Wall Street analysts, AERI is presently graded as a 1.90 considering a scale that ranges from 1 to 5 on which 1 is the poorest analyst grade and 5 is the best possible.
  • 5-Year Sales – Throughout the last half decade, Aerie Pharmaceuticals, Inc. has created a movement in sales volume in the amount of 0. EPS in the period have seen movement in the amount of 2.60%.
  • Q/Q – In terms of quarter over quarter earnings data, or Q/Q data as it is generally explained in today’s society, the company has experienced a change in earnings that comes to a total of -0.50%. Aerie Pharmaceuticals, Inc. has also seen movement with regard to revenue that amounts to 0.

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