Amarin Corporation plc (AMRN) Stock: A Biotechnology Stock That’s Headed Down

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Amarin Corporation plc (AMRN) is working its way for to the bottom in the market in today’s trading session. The stock, one that is focused on the biotechnology sector, is presently trading at $13.89 after falling -5.96% so far today. In terms of biotechnology stocks, there are several factors that have the ability to cause declines in the market. One of the most common is news. Here are the recent trending headlines centered around AMRN:

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Aug-12-19 06:05PM Dont Say Bye Bye to Amarin (AMRN) Stock, Say Buy Buy
Aug-09-19 03:13PM Pharma companies Amarin, Nektar Therapeutics nosedive on product concerns
03:04PM How the 10 Best Stocks From Last Year Hold Up Today
01:50PM Why Amarin Stock Is Tanking Today
01:33PM Drugmakers Put Bad Spin on a Bizarre Week

However, any time investors are making a decision with regard to investing, investors should focus on far more than just news, especially in the generally speculative biotech space. Here’s what’s going on with Amarin Corporation plc.

Recent Movement Out of AMRN

While a move down on a single session, like the move that we’re seeing from Amarin Corporation plc may lead to fear in some investors, that by itself shouldn’t be the reason for a decision to, or not to, invest in a stock. It is generally smart to dig into trends just a single session. In the case of AMRN, below are the movements that investors have experienced:

  • Weekly – In the last 5 trading sessions, AMRN has produced a price change amounting to -17.32%.
  • Past 30 Days – The performance from Amarin Corporation plc throughout the last 30 days has been -36.55%.
  • Quarterly – Throughout the past three months, the stock has produced a return of -14.63%
  • Past Six Months – In the previous six months, investors have seen a performance that equates to -17.81% from the company.
  • YTD – Since the the last trading session of last year AMRN has produced a return on investment of 2.06%.
  • Annually – Lastly, throughout the past year, we have seen a change of 383.97% from AMRN. Throughout this period, the stock has sold at a high price of -41.91% and a low price of 424.13%.

Ratios That Are Notable

Looking at various ratios having to do with a company can give prospective traders a look of just how risky and/or potentially profitable a stock pick may be. Below are a few of the most important ratios to consider when looking at AMRN.

Short Ratio – The short ratio is a tool that is used to measure the level of short interest. The higher this ratio, the more investors are expecting that the price of the stock is headed for declines. In general, biotechnology stocks can carry a higher short ratio. However, we also see a lot of short squeezes in the sector. Nonetheless, with regard to Amarin Corporation plc, it’s short ratio is 3.78.

Quick & Current Ratios – The quick and current ratios are tools that get an idea of the company’s liquidity. Essentially, they measure If a company is able to pay its debts when they mature based on current assets or quick assets. In the biotechnology industry, many companies are heavily reliant on continued support from investors, the quick and current ratios can seem upsetting. Nonetheless, some good picks in the biotechnology space come with strong current and quick ratios. As far as AMRN, the quick and current ratios add up to 1.80 and 2.00 respectively.  

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

Cash To Share Value – The cash to share value comparison compares the 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 looking into a stock in the biotech space, this is a very important ratio to look into. In this case, the cash to share value is 0.51.

What Analysts Say About Amarin Corporation plc

While it’s never a good idea to unknowingly follow the thoughts of analysts, it is a smart idea to consider their thoughts when validating your own when it comes to making investment decisions in the biotechnology sector. Below you’ll find the 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

Is Big Money Interested in 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 own 45.30% of the company. Institutional interest has moved by 0.65% over the past three months. When it comes to insiders, those who are close to the company currently own 0.80% percent of AMRN shares. Institutions have seen ownership changes of an accumulative 0.00% over the last three months.

A Look At 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 430.74M shares of Amarin Corporation plc 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, AMRN has a float of 175.42M.

I also like to dig into the short percentage of the float. Think about it, if a large portion of the float available for trading is sold short, the overall opinion among investors is that the company is going to fall hard. With regard to AMRN, the percentage of the float that is shorted currently sits at 18.23%. Most traders believe that a concerning short percent of the float is any percentage over 40%. However, I have found that anything over 26% is generally a a play that could prove to be very risky.

What We’ve Seen In earnings results

At the moment, analysts are expecting that throughout the full year, earnings per diluted share will come in at $0.11. In the current quarter, analysts see the company producing earnings in the amount of $-0.04. Over the last 5 years, AMRN has generated revenue in the amount of $54.10% with earnings coming in at 17.60%. On a quarter over quarter basis, earnings have seen movement of 95.30% and revenue has seen movement of 91.60%.

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