ContraFect Corporation (CFRX) Stock: Here’s Why It’s Tumbling

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ContraFect Corporation (CFRX) is trending down in the market today. The company, one that is focused in the biotech industry, is presently priced at $0.33 after tumbling -8.36% so far in today’s session. In terms of biotechnology companies, there are quite a few aspects that have the ability to lead to declines in the market. News tends to be one of the biggest reasons for the movement. Here are the most recent trending headlines relating to CFRX:

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Sep-04-19 05:07PM ContraFect to Present at the 2019 Janney Healthcare Conference
Aug-28-19 07:00AM ContraFect Announces Presentation of New Data from its Amurin Peptide Program at the ASM/ESCMID Conference on Drug Development to Meet the Challenge of Antimicrobial Resistance
Aug-16-19 10:45AM CFRX: Ready to Meet with the FDA Regarding Phase 3 Plan for Exebacase
Aug-09-19 07:00AM ContraFect Reports Second Quarter 2019 Financial Results and Provides Business Update
Jul-01-19 09:13AM X-Biotix Therapeutics Joins Antimicrobials Working Group

Nonetheless, when making an investing decision, investors should look into much more than just news, especially in the speculative biotechnology space. Here’s what’s happening with ContraFect Corporation.

Recent Movement From CFRX

While a move down on a single session, like what we’re seeing from ContraFect Corporation may lead to fear in some investors, a single session decline by itself should not be the reason for a decision to, or not to, invest in a stock. It is generally a good idea to look at trends beyond a single trading session. When it comes to CFRX, here are the returns that we’ve seen:

  • Past 5 Sessions – In the past week, CFRX has generated a price change in the amount of -5.74%.
  • Past 30 Days – The monthly ROI from ContraFect Corporation works out to -18.78%.
  • Past Three Months – In the past three months, the stock has produced a return that comes to -21.79%
  • Past 6 Months – In the previous six months, we have seen a change that equates to -20.51% from the company.
  • Year To Date – Since the the last trading session of last year CFRX has resulted in a return of -78.44%.
  • Full Year – Lastly, over the last year, we’ve seen a change that comes to -83.99% from CFRX. Throughout this period, the stock has traded at a high of -87.45% and a low of 22.50%.

Rations That Traders Should Think About

Digging into a few ratios associated with a stock can give prospective traders a look of just how risky and/or potentially profitable a pick might be. Here are a few of the key ratios to consider when digging into CFRX.

Short Ratio – The short ratio is a measure of short interest. The higher this short ratio, the more investors are expecting that the price of the stock is going to tumble. Throughout 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 sector. Nonetheless, as it relates to ContraFect Corporation, the stock’s short ratio comes to 1.11.

Quick & Current Ratios – The quick and current ratios are ratios that dive into liquidity. Essentially, they measure If a company is able to cover its debts when they mature based on quick assets or current assets. In the biotechnology space, several companies rely on continued investor support, the current and quick ratios can seem upsetting. Nonetheless, several good picks in the biotechnology space do have strong quick and current ratios. When it comes to CFRX, the quick and current ratios add up to 4.10 and 4.10 respectively.  

Book To Share Value – The book to share value compares the current book value of assets currently owned by the company to the share price of the stock. In this case, that ratio is 0.12.

Cash To Share Value – Finally, the cash to share value ratio compares the total cash on hand to the price of shares. Many clinical stage biotech companies struggle to keep cash on hand. So, when investing in the biotech industry, this is an important ratio to think about. In this case, the cash to share value works out to 0.19.

How Analysts Feel About ContraFect Corporation

Although it’s never a good idea to avoid doing your DD and blindly following the thoughts of analysts, it is a smart idea to consider their analysis in order to validate your own thoughts before making investment decisions in the biotechnology sector. Below are the most recent moves that we have seen from analysts as it relates to CFRX.

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Jul-28-16 Initiated Piper Jaffray Overweight
Jul-22-16 Downgrade Maxim Group Buy → Hold
Mar-15-16 Reiterated Maxim Group Buy $8 → $7
Dec-31-15 Reiterated Maxim Group Buy $16 → $9

Big Money And ContraFect Corporation

One thing that I’ve come to understand in my short period alive, or somewhat alive is that smart money tends to follow big money. So, investors that want to play it relatively safe will keep their eyes on trades made by institutions and insiders. With that said, where is the big money when it comes to CFRX? Here’s the scoop:

Institutions own 34.90% of the company. Institutional interest has moved by -7.57% over the past three months. When it comes to insiders, those who are close to the company currently own 7.63% percent of CFRX 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 76.11M shares of ContraFect 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, CFRX has a float of 71.40M.

I also find it important to follow the short percentage of the float. Think about it, when a high percentage of the float available for trading is shorted, the overall opinion among investors is that the company is headed for a steep decline. As far as it relates to CFRX, the short percentage of the float is currently 0.49%. In general, high short percent of the float would be considered to be anything over 40%. However, I have calculated that a short percent of the float over 26% is generally a play that comes with hefty risk.

Earnings

What have ween seen from CFRX in terms of financial results?Here’s the information:

  • Analyst Expectations – At the moment, analysts have expectations that ContraFect Corporation will come up with EPS that totals up to be -0.35, with -0.07 being announced in the report for the current quarter. Although this data isn’t associated with earnings, because we’re talking on the topic of Wall St. analysts, the stock is presently rated a 1.70 when rated on a scale from 1 to 5 where 1 is the poorest possible Wall Street analyst rating and 5 is the best possible rating.
  • 5-Year Sales – In the past half decade, ContraFect Corporation has created a change in sales volume in the amount of 0. Earnings per diluted share in the last 5 years have experienced movement in the amount of 16.60%.
  • Quarter Over Quarter – when it comes to quarter over quarter data, or Q/Q data as it is commonly referred to as in today’s society, the company has created a earnings change by 60.10%. ContraFect Corporation has also experienced movement in regard to sales volume that adds up to 0.

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