Amarin Corporation plc (AMRN) Stock: A Biotech Stock That’s Climbing

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Amarin Corporation plc (AMRN) is making a move up in the market today. The stock, one that is focused in the biotechnology industry, is currently trading at $17.81 after gaining 5.63% so far today. In terms of biotech companies, there are several aspects that have the ability to generate movement in the market. News is one of the most common reasons for movement. Here are the most recent trending headlines relating to AMRN:

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Aug-08-19 04:30PM Amarin Announces FDA Notification of Advisory Committee Meeting Planned to be Held in November 2019 in Connection With Vascepa® REDUCE-IT sNDA
Aug-06-19 03:40PM Biotech Stocks to Watch Through the 2nd Half of 2019
Aug-05-19 01:14PM Edited Transcript of AMRN earnings conference call or presentation 31-Jul-19 11:30am GMT
Jul-31-19 03:00PM What You’ll Want to Know About Amarin’s Strong Q2 Results
01:23PM Amarin Corporation plc (AMRN) Q2 2019 Earnings Call Transcript

However, when making a decision to invest, investors should take a look at much more than just news, especially in the highly speculative biotechnology space. Here’s what’s happening with Amarin Corporation plc.

Recent Moves From AMRN

While a move toward the top in a single session, like the gain that we’re seeing from Amarin Corporation plc may make some investors happy, a single session move by itself should not be the reason for a decision to, or not to, buy a company’s stock. It is always smart to look into trends experienced by the stock for a period longer than a single trading session. In the case of AMRN, here are the movements that we’ve seen:

  • Weekly – Throughout the last 5 trading sessions, AMRN has seen a price change that amounts to 0.06%.
  • Past 30 Days – The monthly returns from Amarin Corporation plc comes to -18.97%.
  • Quarterly – Throughout the past 3 months, the stock has generated a return that comes to 2.89%
  • Past 6 Months – In the past 6 months, we’ve seen a performance of 10.28% from the stock.
  • This Year So Far – Since the close of last year AMRN has resulted in a return of 30.86%.
  • Annually – Lastly, in the past full year, we’ve seen a change that comes to 497.65% from AMRN. Throughout this period of time, the stock has sold at a high of -25.51% and a low of 572.05%.

Key Ratios

Looking at a few key ratios associated with a company can provide traders a view of how dangerous and/or potentially profitable a pick may be. Here are a few of the key ratios to consider when digging into AMRN.

Short Ratio – The short ratio is a measure of short interest. The higher this ratio, the more investors have a belief that the stock is headed for declines. Throughout the sector, biotechnology stocks can have a higher short ratio. On the other hand, we also tend to see quite a few short squeezes in the industry. Nonetheless, as it relates to Amarin Corporation plc, it’s short ratio comes to 3.96.

Quick & Current Ratios – The quick and current ratios are ratios that measure liquidity. Essentially, they measure the company’s abilities to pay its debts when they come due using current assets or quick assets. Because many biotech companies rely on continued investor support, the current and quick ratios can look bad. However, quite a few better companies in the biotechnology industry come with strong current and quick ratios. In terms of AMRN, the quick and current ratios total up to 1.80 and 2.00 respectively.  

Book To Share Value – The book to share value compares the the price of shares to the current book value of assets that are owned by the company. In this particular case, the book to share value ratio works out to 0.38.

Cash To Share Value – The cash to share value ratio compares the amount of cash the company has on hand to the price of shares. Many early stage biotech companies struggle to keep cash on hand. So, when investing in the biotechnology sector, this is an important ratio to look into. When it comes to AMRN, the cash to share value is 0.60.

What Analysts Say About Amarin Corporation plc

Although it’s rarely a smart idea to unknowingly follow the thoughts of analysts, it is a good idea to consider their opinions when validating your own before making investment decisions in the biotech sector. Below you’ll find the most recent moves that we have seen from analysts as it relates to AMRN.

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Jul-09-19 Reiterated Jefferies Buy $30
Jun-17-19 Initiated ROTH Capital Buy $31
Mar-22-19 Initiated Stifel Buy $27
Nov-14-18 Upgrade Citigroup Neutral → Buy
Nov-02-18 Downgrade Citigroup Buy → Neutral

Big Money And Amarin Corporation 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 AMRN, here’s what we’re seeing:

  • Institutions – Currently, institutions hold 45.20% of the company. On the other hand, it is important to consider that institutional ownership has moved in the amount of 0.33% throughout the last 3 months.
  • Insider Moves – with regard to insiders, those close to the company currently hold 0.80% of Amarin Corporation plc. Insider ownership of the company has moved 0.00% in the last 3 months.

What’s The Float Looking Like?

Traders seem to have an interest in the total numbers of shares both outstanding and available. With respect to Amarin Corporation plc, currently there are 368.60M and there is a float of 175.42M. These data mean that out of the total of 368.60M shares of AMRN in existence today, 175.42M are able to be traded in the public realm.

I also like to dig into the short percentage of the float. After all, when a high percentage of the float is shorted, the overall feeling among investors is that the stock is headed for a deep dive. In regard to AMRN, the percentage of the float that is currently being sold short sits at 18.23%. Most investors would say that a high short percent of the float would be considered to be anything over 40%. However, I’ve found that anything over 26% is usually a risky play.

What We’ve Seen In earnings results

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

  • Analyst Expectations – As it stands at the moment, Wall St. analysts have expectations that Amarin Corporation plc will come up with earnings per diluted share of 0.19, with -0.04 being announced in the earnings report for the current quarter. Although this data is not earnings driven, because we are chatting about analysts, AMRN is currently graded as a 1.50 considering a scale that ranges from 1 to 5 where 1 is the worst average analyst rating and 5 is the best.
  • 5-Year Sales – In the past 5 years, Amarin Corporation plc has generated a movement in sales volume that adds up to 54.10%. Earnings per share through the last half decade have seen a change of 17.60%.
  • Quarter Over Quarter – In terms of quarter over quarter earnings performance, or Q/Q data as it is often explained in today’s society, the company has experienced a change in earnings that amounts to 95.30%. Amarin Corporation plc has also seen a change with regard to sales that adds up to 91.60%.

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