Veracyte, Inc. (VCYT) Stock: Why It’s Gaining In Value

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Veracyte, Inc. (VCYT) is trending up in the market in today’s trading session. The stock, focused in the biotechnology space, is currently trading at $26.70 after heading up 8.27% so far in today’s session. As it relates to biotechnology companies, there are quite a few factors that have the potential to generate movement in the market. News tends to be one of the biggest reasons for the movement. Here are the recent stories surrounding VCYT:

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Aug-02-19 06:51PM Edited Transcript of VCYT earnings conference call or presentation 30-Jul-19 9:00pm GMT
Jul-31-19 01:24AM Veracyte (VCYT) Q2 2019 Earnings Call Transcript
Jul-30-19 07:45PM Veracyte (VCYT) Reports Q2 Loss, Tops Revenue Estimates
04:15PM Veracyte Announces Second Quarter 2019 Financial Results
Jul-23-19 10:32AM Will Veracyte (VCYT) Report Negative Earnings Next Week? What You Should Know

Nonetheless, any time investors are making a decision with regard to investing, prospective investors should focus on far more than news, especially in the highly speculative biotechnology sector. Here’s what’s happening in regard to Veracyte, Inc..

Trends That We’ve Seen From VCYT

Although a single session gain, like the gain that we’re seeing from Veracyte, Inc. might cause excitement in some investors, a single session move alone should not be the basis of a decision to, or not to, buy a company’s stock. It’s generally important to look into trends beyond a single trading session. In the case of VCYT, below are the returns that investors have experienced:

  • Past 5 Trading Sessions – Throughout the past five trading sessions, VCYT has seen a price change in the amount of -1.11%.
  • Monthly – The monthly performance from Veracyte, Inc. works out to -6.28%.
  • Past Quarter – Throughout the past three months, the stock has produced a return that works out to 18.09%
  • Bi-Annually – Throughout the last six months, we have seen a change that works out to 46.14% from the stock.
  • YTD – Since the open of this year VCYT has generated a return on investment of 112.24%.
  • Annually – Finally, throughout the last full year, we have seen movement amounting to 135.04% out of VCYT. In this period, the stock has traded at a high of -14.37% and a low of 204.45%.

Important Ratios

Digging into various ratios having to do with a stock generally gives traders a look of how dangerous and/or rewarding a pick may be. Below are a few of the important ratios to look at when digging into VCYT.

Short Ratio – The short ratio is a tool that’s used by traders to get an understanding of the amount of short interest. The higher this short ratio, the more investors believe that the value of the stock is going to fall. In general, biotechnology stocks tend to have a higher short ratio. On the other hand, we also see quite a few short squeezes in the industry. Nonetheless, as it relates to Veracyte, Inc., the stock’s short ratio amounts to 3.88.

Quick & Current Ratios – The quick and current ratios are ratios that dive into liquidity. Basically, they measure whether or not a company can pay its debts as they mature with only quick assets or current assets. In the biotech space, many companies rely on the continuation of support from investors, these ratios can look bad. However, quite a few better companies in the biotech industry come with strong current and quick ratios. As it relates to VCYT, the quick and current ratios add up to 14.00 and 14.40 respectively.  

Book To Share Value – The book to share value ratio compares the the price of shares to the current book value of assets that are owned by the company. as it relates to Veracyte, Inc., that ratio works out to 4.92.

Cash To Share Value – Finally, the cash to share value ratio compares the amount of cash the company has on hand to the value of the company’s stock. Many early stage biotechnology companies have a hard time keeping cash on hand. So, if you’re looking into a stock in the biotechnology industry, this is an important ratio to look into. As it relates to VCYT, the cash to share value ratio works out to 3.70.

How Analysts Feel About Veracyte, Inc.

While it’s not a good idea to avoid doing your DD and blindly following the thoughts of analysts, it is a good idea to consider their opinions in order to validate your own when it comes to making an investment decision in the biotechnology sector. Below you’ll find the most recent moves that we’ve seen from analysts as it relates to VCYT.

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Jul-31-19 Initiated Lake Street Buy $35
Jul-02-19 Initiated Needham Buy $33
Nov-29-18 Downgrade Janney Buy → Neutral
Oct-31-18 Upgrade Janney Neutral → Buy
Nov-07-17 Downgrade Piper Jaffray Overweight → Neutral

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 VCYT, here’s what we’re seeing:

Institutions own 90.30% of the company. Institutional interest has moved by 7.32% over the past three months. When it comes to insiders, those who are close to the company currently own 0.80% percent of VCYT shares. Institutions have seen ownership changes of an accumulative -77.41% 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 51.99M shares of Veracyte, 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, VCYT has a float of 47.04M.

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 VCYT, the short percent of the float is 6.04%.

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 $-0.20. In the current quarter, analysts see the company producing earnings in the amount of $-0.07. Over the last 5 years, VCYT has generated revenue in the amount of $33.30% with earnings coming in at 12.70%. On a quarter over quarter basis, earnings have seen movement of 70.00% and revenue has seen movement of 32.00%.

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