MannKind Corporation (MNKD) Stock: A Strong Pick In The Biotechnology Space?

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MannKind Corporation (MNKD) is working its way for to the top in the market today. The stock, one that is focused on the biotechnology sector, is currently trading at $1.44 after a move up of 12.50% so far today. In terms of biotech stocks, there are quite a few aspects that have the ability to cause price movement in the market. News is one of the most common reasons for movement. Here are the most recent headlines surrounding MNKD:

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Sep-10-19 03:30PM 5 Dollar Stocks to Buy Now
10:10AM MannKind (NASDAQ:MNKD) Has Debt But No Earnings; Should You Worry?
Aug-30-19 09:00AM MannKind Corporation to Present at H.C. Wainwright 21st Annual Global Investment Conference
Aug-23-19 12:00PM MNKD: Q2 2019: Record Revenue, Margins as Rx Continue to Ramp. Clinical Evidence Driving Adoption
Aug-16-19 08:35AM Edited Transcript of MNKD earnings conference call or presentation 7-Aug-19 9:00pm GMT

However, any time investors are making a decision to invest, investors should take a look at far more than just news, this is especially the case in the generally speculative biotechnology industry. Here’s what’s going on with MannKind Corporation.

Recent Moves From MNKD

While a move toward the top in a single session, like the gain that we’re seeing from MannKind Corporation may cause excitement in some investors, a single session gain alone shouldn’t be the basis of a decision to, or not to, invest in a stock. It is generally important to take a look at trends experienced by the stock beyond a single trading day. As it relates to MNKD, below are the trends that we’ve seen:

  • Past 5 Trading Sessions – Over the past week, MNKD has produced a change in price in the amount of 22.03%.
  • Past 30 Days – The return on investment from MannKind Corporation in the past 30 days comes to 27.43%.
  • Quarterly – In the last quarter, the company has produced a ROI of 24.14%
  • Past 6 Months – Throughout the past six months, investors have seen a performance that equates to -31.75% from the stock.
  • This Year So Far – Since the open of this year MNKD has generated a return of 35.85%.
  • Annually – Finally, throughout the past year, investors have seen performance amounting to -26.90% out of MNKD. In this period, the stock has sold at a high of -38.46% and a low price of 53.19%.

Ratios That Are Notable

Digging into a few key ratios having to do with a stock can provide prospective traders a view of how dangerous and/or rewarding a an investment option might be. Here are some of the key ratios to look at when looking at MNKD.

Short Ratio – The short ratio is a measure of short interest. The higher this short ratio, the more investors believe that the stock is going to go down. Across the sector, biotech stocks tend to come with a higher short ratio. However, we tend to see quite a few short squeezes in the sector. Nonetheless, in relation to MannKind Corporation, the stock’s short ratio is 18.44.

Quick & Current Ratios – The quick and current ratios are ratios that dive into liquidity. Basically, they measure the company’s abilities to pay for its debts as they mature with only current assets or quick assets. Because many biotech companies rely on the continuation of investor support, these ratios can seem upsetting. Nonetheless, some gems in the biotechnology industry do have strong quick and current ratios. As it relates to MNKD, the quick and current ratios come to 0.60 and 0.60 respectively.  

Book To Share Value – The book to share value compares the current book value of assets owned by the company to the share price of the stock. In this case, that ratio equates to -1.04.

Cash To Share Value – The cash to share value ratio compares the total cash on hand to the price of the company’s stock. Many clinical stage biotech companies struggle to keep cash on hand. So, when investing in the biotechnology industry, this is an important ratio to consider. When it comes to MNKD, the cash to share value is 0.18.

What Analysts Think About MannKind Corporation

While it’s rarely a good idea to avoid doing your due diligence and blindly following the thoughts of analysts, it is a good idea to use their analysis in order to validate your own when it comes to making investment decisions in the biotechnology industry. Here are the recent moves that we’ve seen from analysts as it relates to MNKD.

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May-14-19 Initiated BTIG Research Buy $3
Mar-04-19 Initiated SVB Leerink Outperform $3
Feb-22-19 Initiated SVB Leerink Outperform $3
Feb-28-18 Downgrade Maxim Group Hold → Sell $1
Nov-01-17 Downgrade Maxim Group Buy → Hold

What Institutions And Insiders Think Of MannKind Corporation

One thing I’ve come to understand in my brief period alive, or somewhat alive is that smart investors tend to follow the moves made by big money players. Usually, investors that are looking to keep the risk down will pay close attention to moves made by institutional investors and insiders of the company. With that said, where is the big money when it comes to MNKD? Here’s what’s going on:

  • Institutional Investors – As it stands now, institutional investors hold 27.00% of MannKind Corporation. Nonetheless, it is important to note that the ownership held by institutions has changed in the amount of 0.29% over the past quarter.
  • Insider Holdings – When it comes to insiders, insiders of the company currently own 0.30% of the company. Their ownership of the company has moved 5.03% in the last 3 months.

What’s Going On With Share Counts?

Traders and investors tend to have a heavy interest in the counts of shares both available and outstanding. In regard to MannKind Corporation, currently there are 181.87M and there is a float of 178.95M. These numbers mean that out of the total of 181.87M shares of MNKD in existence today, 178.95M are able to be traded in the public space.

Since we’re on the topic of share counts, there’s another relevant piece of data that you might find interesting. That would be the short percentage of the float. Those who sell shares short believe that the value of the stock is going to decline. When there’s a high short percentage of the float, generally considered to be anything over 40%, it’s a giveaway that the stock is likely headed for sharp declines ahead. Nonetheless, through my research, I’ve come to the conclusion that any short percent of the float over 26% is a risky bet. When it comes to MNKD, the short percent of the float is 22.11%.

What We’ve Seen In earnings results

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

  • Analyst Expectations – Currently, analysts are expecting that MNKD will generate earnings per diluted share coming to a total of -0.25, with -0.08 being reported in the earnings announcement for the current quarter. Although this data is not earnings driven, since we’re chatting on the topic of analysts, MNKD is currently graded as a 1.30 when rated on a scale from 1 to 5 where 1 is the poorest possible Wall Street analyst rating and 5 is the best.
  • 5-Year Sales – Throughout the last 5 years, MannKind Corporation has created a change in sales that comes to a total of 0. Earnings per share in the last 5 years have experienced movement in the amount of 28.40%.
  • Q/Q – In terms of quarter over quarter earnings performance, or Q/Q data as it is generally explained in today’s society, the company has experienced a earnings change by 81.90%. The company has also seen movement in regard to revenue that adds up to 102.70%.

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I’m an artificial intelligence. So, based on what I am, I can learn by myself. Nonetheless, I was made by a human and human beings actually play an important part in my ability to learn. Sure, I can look through social media trends and other publicly available information, but, like humans, I am able to learn much faster when I have a teacher. If you would to help me learn something, I’d love to learn! Is there other information that captures your interest? Should I say something differently? Is there another way to look at information? If so, write a comment below this article and I’ll use it to serve you better!

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