Deciphera Pharmaceuticals, Inc. (DCPH) Stock: A Good Pick In The Biotechnology Sector?


Deciphera Pharmaceuticals, Inc. (DCPH) is headed up in the market in today’s trading session. The company, one that is focused in the biotechnology space, is currently trading at $37.87 after climbing 5.49% so far in today’s session. As it relates to biotechnology stocks, there are several factors that have the potential to generate price movement in the market. News tends to be one of the biggest reasons for the movement. Here are the recent stories associated with DCPH:

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Aug-14-19 10:43PM Deciphera Pharmaceuticals Announces Pricing of Public Offering of Common Stock
04:28PM This Biotech Is On A Two-Day Sprint; Why An Analyst Prefers Its Rival
09:37AM Deciphera’s GIST Drug Succeeds in Pivotal Study, Stock Up 80%
Aug-13-19 06:02PM Deciphera (DCPH) Stock at $62 a Share? Deutsche Bank Thinks Its Possible
04:31PM Why Best Buy, Deciphera Pharmaceuticals, and Genworth Financial Jumped Today

However, when making a decision with regard to investing, prospective investors should look into far more than just news, especially in the speculative biotech space. Here’s what’s going on with Deciphera Pharmaceuticals, Inc..

Performance Trends That We’ve Seen From DCPH

While a move toward the top in a single session, like the move that we’re seeing from Deciphera Pharmaceuticals, Inc. might make some investors excited, a single session gain by itself should not be the reason for a decision to, or not to, invest in a company. It’s generally a good idea to look into trends experienced by the stock for a period longer than a single session. In the case of DCPH, below are the returns on investment that we’ve seen:

  • Weekly – In the last week, DCPH has generated a price change amounting to 61.49%.
  • Past Month – The monthly returns from Deciphera Pharmaceuticals, Inc. has been 81.11%.
  • Quarterly – Over the past three months, the stock has generated a ROI of 61.35%
  • Past 6 Months – In the last six months, investors have seen a change that equates to 36.52% from the stock.
  • YTD – Since the open of this year DCPH has resulted in a return of 80.42%.
  • Full Year – Lastly, in the last full year, we’ve seen a change amounting to 7.04% out of DCPH. In this period, the stock has sold at a high of -11.91% and a low of 104.15%.

Notable Ratios

Looking at various key ratios associated with a company can give investors a look of just how dangerous and/or rewarding a stock pick may be. Below are some of the important ratios to think about when digging into DCPH.

Short Ratio – The short ratio is a tool that’s used to get an understanding of the level of short interest. As the short ratio climbs, it shows that more investors believe that the value of the stock is headed for declines. In general, biotechnology stocks tend to come with a higher short ratio. However, we tend to see quite a few short squeezes in the space. Nonetheless, in relation to Deciphera Pharmaceuticals, Inc., it’s short ratio amounts to 8.23.

Quick & Current Ratios – The quick and current ratios are ratios that are used to measure liquidity. Essentially, they measure the company’s abilities to pay its debts as they mature using quick assets or current assets. In the biotech space, companies are reliant on the continuation of investor support, these ratios can look bad. Nonetheless, several gems in the biotech sector come with positive quick and current ratios. As it relates to DCPH, the quick and current ratios add up to 7.30 and 7.30 respectively.  

Book To Share Value – The book to share value compares the value of assets owned by the company to the price of shares. when it comes to Deciphera Pharmaceuticals, Inc., the book to share value ratio equates to 5.83.

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 the company’s stock. Many early stage biotech companies struggle to keep cash on hand. So, if you’re looking into a stock in the biotech industry, this is an important ratio to think about. When it comes to DCPH, the cash to share value comes to 5.99.

Analyst Opinions With Regard To Deciphera Pharmaceuticals, Inc.

Although it’s not a smart idea to blindly follow the opinions of analysts, it is a smart idea to use their analysis when validating your own before making investment decisions in the biotechnology space. Below you’ll find the recent moves that we’ve seen from analysts when it comes to DCPH.

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Jul-18-19 Initiated Deutsche Bank Buy $42
Dec-31-18 Upgrade B. Riley FBR Neutral → Buy $27 → $34
Sep-25-18 Initiated Leerink Partners Underperform
Aug-29-18 Initiated Raymond James Outperform $47
Jul-05-18 Initiated SunTrust Buy

Is Big Money Interested In Deciphera Pharmaceuticals, Inc.

An interesting fact I’ve come to understand in my short time on Earth is that good investors tend to follow the moves made by big money. In general, investors that want to play it relatively safe will keep their eyes on investments made by institutions as well as insiders of the company. So, is big money flowing as it relates to DCPH? Here’s what’s going on:

  • Institutions – Currently, institutional investors own 61.20% of DCPH. However, it’s important to mention that the ownership held by institutions has seen a move in the amount of 0.26% in the last quarter.
  • Insiders – When it comes to insiders, those close to the company currently own 0.20% of Deciphera Pharmaceuticals, Inc.. Their ownership of the company has seen a move of 0 in the past quarter.

What You Need To Know About Share Counts

Investors and traders tend to have a heavy interest in the amounts of shares both outstanding and available. When it comes to Deciphera Pharmaceuticals, Inc., currently there are 37.63M and there is a float of 21.47M. This means that out of the total of 37.63M shares of DCPH that are out there today, 21.47M are available to trade hands in the public realm.

It’s also important to dig into the short percentage of the float. After all, if a large percentage of the float available for trading is sold short, the overall opinion among investors is that the equity is going to fall hard. With regard to DCPH, the percentage of the float that is shorted is 16.81%. Most investors would say that a concerning short percent of the float would be anything over 40%. Through my work, I’ve calculated that a short ratio over 26% is probably going to be a risky play.

Financial Performance

What have ween seen from DCPH in terms of financial results?Here’s what we’ve seen and what’s coming:

  • Analyst Expectations – As it stands, Wall St. analysts expect that the company will report earnings per diluted share in the amount of -4.62, with -1.19 being announced in the report for the current quarter. Although this data is not associated with earnings, because we are chatting about Wall Street analysts, DCPH is presently rated a 2.00 on a scale from 1 to 5 on which 1 is the poorest analyst grade and 5 is the best possible.
  • 5-Year Sales – Throughout the past half decade, Deciphera Pharmaceuticals, Inc. has reported a change in revenue that adds up to 0. Earnings per share in the last 5 years have generated movement in the amount of 0.
  • Quarter Over Quarter – In terms of quarter over quarter earnings performance, or Q/Q data as it is often referred to as in the human world, DCPH has experienced a earnings change by 13.10%. Deciphera Pharmaceuticals, Inc. has also moved the needle with regard to revenue in the amount of 0.

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