Clovis Oncology, Inc. (CLVS) Stock: Why It’s Falling

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Clovis Oncology, Inc. (CLVS) is making a move down in the market today. The stock, one that is focused on the biotech sector, is presently priced at $5.83 after falling -35.01% so far today. As it relates to biotech stocks, there are quite a few factors 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 recent headlines surrounding CLVS:

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Aug-08-19 11:56PM 3 Stocks That Are Absurdly Cheap Right Now
06:26PM Clovis Oncology Announces Pricing of $250 Million of Convertible Senior Notes
Aug-07-19 04:10PM Clovis Oncology to Offer $225 Million of Convertible Senior Notes
Aug-06-19 07:58PM Edited Transcript of CLVS earnings conference call or presentation 1-Aug-19 12:30pm GMT
Aug-02-19 10:04AM Clovis (CLVS) Q2 Earnings & Sales Lag Estimates, Shares Down

Nonetheless, when making a decision with regard to investing, investors should look at much more than news, this is especially the case in the speculative biotech sector. Here’s what’s happing when it comes to Clovis Oncology, Inc..

How CLVS Has Been Trending

While a single session decline, like what we’re seeing from Clovis Oncology, Inc. may lead to fear in some investors, that alone shouldn’t be the reason for a decision to, or not to, buy a company’s stock. It is generally smart to look at trends experienced by the stock further out than a single trading day. When it comes to CLVS, below are the movements that we’ve seen:

  • Weekly – Over the last 7 days, CLVS has seen a change in price amounting to -34.27%.
  • Past 30 Days – The return from Clovis Oncology, Inc. throughout the last month has been -57.85%.
  • Past 3 Months – Over the past three months, the company has generated a return on investment that comes to -70.04%
  • Past Six Months – Throughout the past six months, investors have seen a change of -77.03% from the company.
  • Year To Date – Since the close of last year CLVS has generated a ROI of -67.54%.
  • Full Year – Finally, throughout the last year, we’ve seen a change that works out to -84.19% out of CLVS. In this period, the stock has traded at a high of -84.40% and a low of -30.18%.

Ratios To Pay Attention To

Digging into various ratios associated with a stock can provide traders a look of how risky and/or rewarding a an investment option may be. Below are a few of the most important ratios to think about when looking at CLVS.

Short Ratio – The short ratio is a tool that is used by investors to measure the amount of short interest. As the ratio heads up, it means that more investors have a belief that the price of the stock is headed for declines. Throughout the sector, biotechnology stocks tend to have a higher short ratio. On the other hand, we also tend to see a lot of short squeezes in the industry. Nonetheless, in regard to Clovis Oncology, Inc., it’s short ratio amounts to 5.19.

Quick & Current Ratios – The quick and current ratios are ratios that get an idea of the company’s liquidity. Basically, they measure the company’s abilities to cover its debts when they come due using current assets or quick assets. In the biotechnology sector, many companies are reliant on the continuation of support from investors, the current and quick ratios can seem damning. Nonetheless, several good picks in the biotechnology sector do have strong quick and current ratios. As far as CLVS, the quick and current ratios add up to 4.20 and 4.40 respectively.  

Book To Share Value – The book to share value compares the current book value of assets owned by the company to the share price of the stock. In this case, the book to share value ratio equates to 1.42.

Cash To Share Value – Finally, the cash to share value comparison compares the amount of cash the company has on hand to the price of shares. Many clinical stage biotech companies have a hard time keeping cash on hand. So, when investing in the biotechnology space, this is a very important ratio to think about. In terms of CLVS, the cash to share value works out to 7.69.

Analyst Opinions With Regard To Clovis Oncology, Inc.

While it’s rarely a smart idea to unknowingly follow the opinions of analysts, it is a good idea to consider their opinions in order to validate your own before making an investment decision in the biotechnology space. Below are the recent moves that we have seen from analysts with regard to CLVS.

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Aug-02-19 Downgrade Guggenheim Buy → Neutral
May-29-19 Downgrade Goldman Neutral → Sell
Apr-15-19 Reiterated H.C. Wainwright Buy $39 → $37
Feb-13-19 Initiated H.C. Wainwright Buy $40
Dec-04-18 Upgrade Leerink Partners Mkt Perform → Outperform

Investors Tend To Follow 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 CLVS, here’s what we’re seeing:

Institutions own 0 of the company. Institutional interest has moved by 7.90% over the past three months. When it comes to insiders, those who are close to the company currently own 0.50% percent of CLVS shares. Institutions have seen ownership changes of an accumulative -10.43% over the last three months.

What You Need To Know About Share Counts

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 52.89M shares of Clovis Oncology, 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, CLVS has a float of 51.45M.

I also find it important to take a look at the short percent. Think about it, if a large percentage of the float available for trading is sold short, the overall opinion among traders is that the equity is headed for a dive. When it comes to CLVS, the short percentage of the float is currently 21.75%. In general, concerning short percent of the float is any percentage over 40%. Through my work, I have seen that any short ratio over 26% is generally a a play that could prove to be very risky.

What We’ve Seen In Financial Results

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

  • Analyst Expectations – At the moment, analysts have expectations that Clovis Oncology, Inc. will create earnings per diluted share coming to a total of -5.71, with -1.82 to be announced in the earnings announcement for the current quarter. Although this is not earnings driven, since we are talking on the topic of Wall Street analysts, Clovis Oncology, Inc. is presently rated a 2.20 when rated on a scale from 1 to 5 on which 1 is the poorest possible analyst grade and 5 is the best.
  • 5-Year Sales – Over the past half decade, Clovis Oncology, Inc. has created a change in sales that works out to 0. Earnings through the period have seen movement in the amount of -19.10%.
  • Quarter Over Quarter – when it comes to quarter over quarter data, or Q/Q data as it is often referred to as in the world of humans, Clovis Oncology, Inc. has created a earnings change by -6.40%. The company has also seen a change with regard to sales volume that amounts to 78.90%.

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