Geron Corporation (GERN) Stock: Here’s Why It’s Tumbling

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Geron Corporation (GERN) is headed down in the market in today’s trading session. The stock, focused in the biotech space, is presently priced at $1.36 after a move down of -5.56% so far in today’s session. In terms of biotechnology stocks, there are several factors that have the potential to cause movement in the market. One of the most common is news. Here are the recent trending headlines centered around GERN:

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Aug-22-19 04:18PM Geron Reports Inducement Grants Under Nasdaq Listing Rule 5635(c)(4)
Aug-08-19 09:08AM A Spotlight On Geron Corporation’s (NASDAQ:GERN) Fundamentals
08:08AM Geron Starts Phase 3 Clinical Trial in Lower Risk Myelodysplastic Syndromes
Aug-07-19 03:33AM Edited Transcript of GERN earnings conference call or presentation 1-Aug-19 8:30pm GMT
Aug-06-19 01:49AM Geron Corporation (Delaware) (GERN) Q2 2019 Earnings Call Transcript

Nonetheless, when making a decision with regard to investing, prospective investors should focus on far more than just news, especially in the highly speculative biotech space. Here’s what’s going on with Geron Corporation.

The Performance That We’ve Seen From GERN

Although a move down on a single session, like what we’re seeing from Geron Corporation may cause fear in some investors, a single session move by itself shouldn’t be the basis of a decision to, or not to, invest in a company. It is generally important to look at trends further out than a single session. In the case of GERN, here are the returns on investment that we’ve seen:

  • Past 5 Sessions – Throughout the last 5 trading sessions, GERN has produced a change in price in the amount of -3.55%.
  • Past 30 Days – The return from Geron Corporation in the last month works out to 16.24%.
  • Past 3 Months – Throughout the past quarter, the stock has produced a return on investment that works out to -12.26%
  • Bi-Annually – Throughout the past six months, investors have seen a change that equates to -10.53% from the company.
  • This Year So Far – Since the the last trading session of last year GERN has produced a return of 36.00%.
  • Full Year – Finally, throughout the past full year, investors have seen a change in the amount of -67.39% from GERN. Over this period of time, the stock has traded at a high of -80.54% and a low price of 42.45%.

Ratios That Are Notable

Looking at a few ratios having to do with a company can give investors a view of just how risky and/or rewarding a stock pick might be. Below are some of the key ratios to look at when looking at GERN.

Short Ratio – The short ratio is a measure of short interest. As the ratio climbs, it shows that more investors are expecting that the value of the stock is headed for declines. Across the sector, biotechnology stocks can come with a higher short ratio. On the other hand, we also tend to see quite a few short squeezes in the industry. Nonetheless, in regard to Geron Corporation, it’s short ratio clocks in at 26.82.

Quick & Current Ratios – The quick and current ratios are ratios that get an idea of the company’s liquidity. Essentially, they measure whether or not a company can pay for its debts when they mature using quick assets or current assets. In the biotech industry, companies are heavily reliant on continued investor support, the quick and current ratios can be upsetting. Nonetheless, some gems in the biotechnology sector do have great current and quick ratios. When it comes to GERN, the quick and current ratios work out to 16.90 and 16.90 respectively.  

Book To Share Value – The book to share value ratio compares the current book value of assets owned by the company to the price of shares. In this particular case, that ratio works out to 0.84.

Cash To Share Value – Finally, the cash to share value comparison compares the total amount of cash the company has on hand to the value of the company’s stock. Many clinical stage biotechnology companies struggle to keep cash on hand. So, if you’re looking into a stock in the biotech sector, this is an important ratio to consider. In the case of GERN, the cash to share value ratio comes to 0.82.

How Analysts Feel About Geron Corporation

While it’s not a smart idea to blindly follow the thoughts of analysts, it is a smart idea to consider their thoughts when validating your own 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 as it relates to GERN.

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Aug-15-19 Initiated Cantor Fitzgerald Overweight $4
Apr-09-19 Upgrade Needham Hold → Buy $3
Jan-31-19 Upgrade B. Riley FBR Neutral → Buy $1.50 → $3.25
Oct-02-18 Downgrade B. Riley FBR Buy → Neutral $5.75 → $1.50
Jul-05-18 Initiated B. Riley FBR, Inc. Buy $5.75

Is Big Money Interested in Geron Corporation?

An interesting fact that I’ve learned in my short time here has been that smart investors tend to follow big money investors. In other words, investors that are trying to keep their investments relatively safe will keep an eye on trades made by institutions and insiders of the company. So, what does the big money picture look like when it comes to GERN? Here’s the scoop:

  • Institutions – At the moment, institutions own 31.80% of Geron Corporation. However, it’s worth considering that the ownership held by institutions has changed in the amount of 1.04% over the past quarter.
  • Insiders – As far as insiders go, members of the management team and others close to GERN currently hold 0.10% of Geron Corporation. Insider ownership of the company has changed by -39.37% over the last quarter.

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 185.74M shares of Geron Corporation 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, GERN has a float of 185.74M.

I also find it important to dig into the short percentage of the float. Think about it, when a high portion of the float available for trading is shorted, the overall opinion among traders is that the stock is headed for a dive. When it comes to GERN, the percentage of the float that is currently being sold short is 23.50%. Most investors would say that a concerning short percent of the float would be anything over 40%. However, I have seen that a short percent of the float over 26% is usually a a play that could prove to be very risky.

Earnings

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

  • Analyst Expectations – At the moment, analysts are expecting that GERN will generate EPS that comes to -0.34, with -0.16 being announced in the earnings announcement for the current quarter. Although this data isn’t associated with earnings, because we’re chatting on the topic of Wall St. analysts, the stock is currently rated a 1.70 when rated on a scale from 1 to 5 where 1 is the worst possible Wall Street analyst grade and 5 is the best rating.
  • 5-Year Sales – Over the last 5 years, Geron Corporation has created a change in sales volume that works out to -3.60%. Earnings per diluted share in the period have generated a change of 12.50%.
  • Q/Q – In terms of quarter over quarter data, or Q/Q data as it is generally referred to as in the human world, GERN has seen a change in earnings in the amount of -92.10%. GERN has also moved the needle with regard to sales that amounts to -50.00%.

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