Athersys, Inc. (ATHX) Stock: Why It’s Headed Down

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Athersys, Inc. (ATHX) is working its way for to the bottom in the market today. The stock, one that is focused on the biotechnology sector, is currently trading at $1.27 after a move down of -5.93% so far in today’s session. As it relates to biotech stocks, there are quite a few factors that have the potential to generate movement in the market. News is one of the most common reasons for movement. Here are the most recent stories centered around ATHX:

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Aug-08-19 11:23AM Athersys (ATHX) Q2 2019 Earnings Call Transcript
Aug-07-19 04:05PM Athersys Reports Second Quarter 2019 Results
Jul-31-19 02:32PM Do Institutions Own Shares In Athersys, Inc. (NASDAQ:ATHX)?
Jul-08-19 11:00AM Athersys to Host Second Quarter Financial Results Call
Jun-20-19 09:58AM Aggie Square executive helps foster university startups

However, any time investors are making a decision with regard to investing, prospective investors should focus on far more than news, especially in the generally speculative biotechnology space. Here’s what’s going on with Athersys, Inc..

The Performance That ATHX Investors Have Experienced

While a decline in a single session, like what we’re seeing from Athersys, Inc. may lead to fear in some investors, a single session move alone shouldn’t be the basis of a decision to, or not to, invest in a stock. It is generally a good idea to dig into trends just a single trading day. In the case of ATHX, here are the returns that investors have seen:

  • Past 7 Days – In the past week, ATHX has produced a change in price in the amount of -8.63%.
  • Past Month – The monthly returns from Athersys, Inc. works out to -19.62%.
  • Quarterly – Throughout the past quarter, the company has generated a return on investment that works out to -20.63%
  • Past 6 Months – In the past six months, investors have seen a change that works out to -17.53% from the company.
  • This Year So Far – Since the the last trading session of last year ATHX has resulted in a return of -11.81%.
  • Full Year – Finally, in the past full year, we have seen movement that comes to -33.85% out of ATHX. Over this period, the stock has traded at a high price of -43.05% and a low of -0.78%.

Rations That You Should Look Into

Looking at a few ratios associated with a stock can give traders an understanding of just how risky and/or potentially profitable a pick might be. Here are a few of the most important ratios to consider when looking at ATHX.

Short Ratio – The short ratio is a tool that’s used to measure the amount of short interest. The higher this short ratio, the more investors have a belief that the stock is going to tumble. In general, biotech stocks tend to come with a higher short ratio. On the other hand, we also see quite a few short squeezes in the space. Nonetheless, when it comes to Athersys, Inc., it’s short ratio comes to 15.71.

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 when they come due with only current assets or quick assets. Because many biotech companies are heavily reliant on continued investor support, these ratios can be upsetting. However, several good picks in the biotech space do have strong current and quick ratios. As far as ATHX, the quick and current ratios come to 3.10 and 3.10 respectively.  

Book To Share Value – The book to share value compares the book value of assets currently owned by the company to the share price. In this particular case, that ratio works out to 0.25.

Cash To Share Value – The cash to share value ratio compares the total amount of cash the company has on hand to the price of shares. Several early stage biotech companies struggle to keep cash on hand. So, when investing in the biotech space, this is an important ratio to think about. In the case of ATHX, the cash to share value is 0.33.

Analyst Opinions With Regard To Athersys, Inc.

While it’s never a good idea to unknowingly follow the opinions of analysts, it is a smart idea to consider their thoughts to validate your own due diligence when it comes to making an investment decision in the biotechnology sector. Below you’ll find the most recent moves that we have seen from analysts when it comes to ATHX.

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Feb-13-18 Reiterated Maxim Group Buy $12 → $6
Aug-10-17 Reiterated Maxim Group Buy $9 → $12
Feb-07-17 Initiated Needham Buy $7
Mar-11-16 Reiterated Maxim Group Buy $5 → $10
Jul-09-15 Downgrade Piper Jaffray Overweight → Neutral

Big Money And Athersys, Inc.

An interesting fact I’ve learned in my short time in existence is that smart investors tend to follow the moves made by big money. In general, investors that are looking to keep their investments relatively safe will keep their eyes on trades made by institutions and those on the inside. With that said, is big money interested in regard to ATHX? Here’s what’s happening:

  • Institutional Investors – As it stands now, institutions own 19.90% of Athersys, Inc.. On the other hand, it is worth noting that the ownership held by institutions has seen a move of 0.17% over the past 3 months.
  • Insiders – When it comes to insiders, those close to the company currently own 2.30% of the company. Insider ownership of the company has seen a move of -1.40% over the past 3 months.

A Look At Share Counts

Investors seem to like to know the amounts of shares both outstanding and available. In regard to Athersys, Inc., there are currently 153.09M with a float of 131.10M. These numbers mean that out of the total of 153.09M shares of ATHX in existence today, 131.10M are available to be traded on the market.

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 ATHX, the short percent of the float is 8.43%.

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 $-0.38. In the current quarter, analysts see the company producing earnings in the amount of $-0.09. Over the last 5 years, ATHX has generated revenue in the amount of $58.40% with earnings coming in at 19.70%. On a quarter over quarter basis, earnings have seen movement of -10.90% and revenue has seen movement of 27.30%.

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