Arrowhead Pharmaceuticals, Inc. (ARWR) Stock: Is This Biotech Stock Worth Your Time?

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Arrowhead Pharmaceuticals, Inc. (ARWR) is making a move down in the market today. The company, focused on the biotech industry, is presently priced at $28.70 after heading down -8.92% so far today. When it comes to biotechnology companies, there are several 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 associated with ARWR:

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Sep-09-19 06:51AM Should First Trust Small Cap Growth AlphaDEX Fund (FYC) Be on Your Investing Radar?
Sep-08-19 07:28PM Here’s Why Arrowhead Pharmaceuticals Rose 17.6% in August
Aug-30-19 04:00PM Arrowhead Pharmaceuticals to Participate in Upcoming September 2019 Conferences
Aug-29-19 04:21PM Why This Newly Profitable Biotech Stock Is Flirting With A Breakout
11:02AM Arrowhead Pharmaceuticals and three other stocks to watch

However, any time investors are making a decision with regard to investing, prospective investors should take a look at far more than just news, especially in the highly speculative biotech industry. Here’s what’s happing when it comes to Arrowhead Pharmaceuticals, Inc..

Recent Movement Out of ARWR

While a decline in a single session, like what we’re seeing from Arrowhead Pharmaceuticals, Inc. may make some investors tremble, 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 a good idea to look at trends experienced by the stock for a period longer than a single trading day. When it comes to ARWR, here are the trends that we have seen:

  • Past 5 Sessions – In the last five trading sessions, ARWR has produced a change in value that amounts to -16.01%.
  • Monthly – The monthly returns from Arrowhead Pharmaceuticals, Inc. has been -1.51%.
  • Past 3 Months – In the last three months, the company has produced a return that works out to 8.14%
  • Past 6 Months – Over the previous six months, we’ve seen a change that equates to 50.58% from the stock.
  • Year To Date – Since the the first trading session of this year ARWR has produced a return on investment of 131.08%.
  • Annually – Lastly, throughout the last year, we have seen performance that comes to 48.01% out of ARWR. In this period, the stock has sold at a high price of -22.01% and a low price of 175.70%.

Important Ratios

Digging into various ratios associated with a stock generally gives prospective investors an understanding of just how risky and/or potentially profitable a an investment option might be. Here are a few of the important ratios to think about when looking at ARWR.

Short Ratio – The short ratio is a measure of short interest. The higher this short ratio, the more investors have a belief that the value of the stock is going to fall. Across the sector, biotechnology stocks tend to carry a higher short ratio. On the other hand, we tend to see quite a few short squeezes in the sector. Nonetheless, in regard to Arrowhead Pharmaceuticals, Inc., the stock’s short ratio amounts to 11.36.

Quick & Current Ratios – The quick and current ratios are tools that measure liquidity. Basically, they measure the company’s abilities to pay its debts when they mature with only current assets or quick assets. In the biotechnology sector, several companies are heavily reliant on the continuation of investor support, the current and quick ratios can seem upsetting. However, some gems in the biotechnology space come with strong quick and current ratios. When it comes to ARWR, the quick and current ratios work out to 2.80 and 2.80 respectively.  

Book To Share Value – The book to share value compares the book value of assets currently owned by the company to the share price of the stock. In this case, that ratio works out to 2.38.

Cash To Share Value – Finally, the cash to share value comparison compares the amount of cash the company has on hand to the value of shares. Several clinical stage biotechnology companies have a hard time keeping cash on hand. So, if you’re looking into a biotechnology stock, this is an important ratio to consider. As it relates to ARWR, the cash to share value comes to 2.46.

How Analysts Feel About Arrowhead Pharmaceuticals, Inc.

While it’s not a good idea to blindly follow the thoughts of analysts, it is a good idea to use their opinions when validating your own opinions when it comes to making investment decisions in the biotechnology space. Here are the recent moves that we have seen from analysts as it relates to ARWR.

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Sep-07-18 Upgrade B. Riley FBR Neutral → Buy $18 → $19
Sep-06-18 Reiterated Chardan Capital Markets Buy $17.50 → $24.50
Aug-08-18 Reiterated Cantor Fitzgerald Overweight $13 → $18
Jul-02-18 Reiterated Chardan Capital Markets Buy $9.50 → $16
May-09-18 Upgrade Cantor Fitzgerald Neutral → Overweight $13

Is Big Money Interested In Arrowhead Pharmaceuticals, Inc.

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 ARWR, here’s what we’re seeing:

  • Institutional Investors – Currently, institutions own 80.90% of Arrowhead Pharmaceuticals, Inc.. However, it’s important to note that the ownership held by institutions has seen a move of 27.61% over the last quarter.
  • Investors On The Inside – When it comes to insiders, those close to the situation currently hold 2.80% of the company. Insider ownership of the company has moved -4.42% over the last quarter.

What’s Going On With 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 96.30M shares of Arrowhead Pharmaceuticals, 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, ARWR has a float of 86.99M.

I also like to follow the short float. Think about it, when a large percentage of the float available for trading is sold short, the overall feeling among traders is that the stock is going to take a dive. As far as ARWR, the percentage of the float that is sold short comes to a total of 18.14%. Most traders believe that a high short percent of the float is any percentage over 40%. In my research, I have calculated that any short ratio over 26% is probably going to be a play that comes with hefty risk.

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 $-0.19. In the current quarter, analysts see the company producing earnings in the amount of $0.10. Over the last 5 years, ARWR has generated revenue in the amount of $123.40% with earnings coming in at 12.90%. On a quarter over quarter basis, earnings have seen movement of 215.50% and revenue has seen movement of 5770.00%.

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