Aeterna Zentaris Inc. (AEZS) Stock: Why It’s Down

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Biotech Stocks With Potential!

Aeterna Zentaris Inc. (AEZS) is headed down in the market in today’s trading session. The stock, focused on the biotechnology space, is presently priced at $1.28 after heading down -22.42% so far in today’s session. When it comes to biotech stocks, there are several factors that have the potential to generate price movement in the market. News is one of the most common reasons for movement. Here are the most recent trending headlines centered around AEZS:

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Sep-20-19 11:00AM Aeterna Zentaris Announces Pricing of Approximately $5.0 Million Registered Direct Offering
Aug-20-19 11:16PM Aeterna Zentaris Announces Director Change
Aug-13-19 05:45PM Aeterna Zentaris (AEZS) Beats Q2 Earnings Estimates
04:15PM Aeterna Zentaris Reports Second Quarter 2019 Financial and Operating Results
Aug-01-19 10:33AM Will Aeterna Zentaris (AEZS) Report Negative Q2 Earnings? What You Should Know

However, any time investors are making a decision with regard to investing, prospective investors should look into far more than news, this is especially the case in the highly speculative biotechnology sector. Here’s what’s happening in regard to Aeterna Zentaris Inc..

Recent Trends From AEZS

While a move down on a single session, like the move that we’re seeing from Aeterna Zentaris Inc. may cause fear in some investors, a single session move alone should not be the basis of a decision to, or not to, buy a company’s stock. It’s always a good idea to dig into trends just a single session. As it relates to AEZS, here are the returns that we’ve seen:

  • Past 7 Days – Over the past five trading sessions, AEZS has generated a price change that amounts to -28.49%.
  • Past 30 Days – The return on investment from Aeterna Zentaris Inc. over the past month has been -38.16%.
  • Quarterly – Over the past 3 months, the stock has generated a ROI that works out to -52.59%
  • Past 6 Months – Throughout the previous 6 months, investors have seen a change that amounts to -69.08% from the company.
  • YTD – Since the the first trading session of this year AEZS has produced a return of -56.46%.
  • Annually – Lastly, throughout the past year, we have seen movement amounting to -21.56% out of AEZS. Throughout this period of time, the stock has traded at a high price of -77.02% and a low price of -0.78%.

Ratios To Watch

Digging into various ratios associated with a company can give investors an understanding of how risky and/or rewarding a an investment option might be. Below are some of the important ratios to look at when digging into AEZS.

Short Ratio – The short ratio is a tool that’s used to measure the level of short interest. As the short ratio heads up, it shows that more investors are expecting that the price of the stock is going to go down. In general, biotech stocks tend to carry a higher short ratio. On the other hand, we also tend to see quite a few short squeezes in the space. Nonetheless, in relation to Aeterna Zentaris Inc., the stock’s short ratio comes to 4.68.

Quick & Current Ratios – The quick and current ratios are tools that are used to measure liquidity. Basically, they measure If a company is able to pay its debts as they mature with only current assets or quick assets. Because many biotech companies are heavily reliant on continued investor support, these ratios can be upsetting. Nonetheless, quite a few good picks in the biotech sector do have strong current and quick ratios. When it comes to AEZS, the quick and current ratios work out to 1.60 and 1.70 respectively.  

Book To Share Value – The book to share value compares the book value of assets owned by the company to the share price. as it relates to Aeterna Zentaris Inc., the book to share value ratio works out to -0.18.

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 have a hard time keeping cash on hand. So, when investing in the biotech industry, this is an important ratio to look into. As it relates to AEZS, the cash to share value comes to 0.45.

Analyst Opinions With Regard To Aeterna Zentaris Inc.

While it’s never a good idea to avoid doing your due diligence and blindly following the opinions of analysts, it is a smart idea to consider their thoughts to validate your own before making an investment decision in the biotech sector. Below are the most recent moves that we have seen from analysts with regard to AEZS.

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Jul-19-17 Reiterated Maxim Group Buy $2 → $4
May-10-17 Reiterated H.C. Wainwright Buy $7.50 → $3
May-01-17 Reiterated Maxim Group Buy $11 → $2
Jan-17-17 Reiterated Maxim Group Buy $7 → $10
Dec-02-15 Reiterated H.C. Wainwright Buy $11 → $12

Is Big Money Interested in Aeterna Zentaris Inc.?

One thing that I have come to understand so far in my brief time on Earth has been that smart money tends to follow big money investors. So, investors that want to keep the risk down will follow moves made by institutional investors as well as insiders. So, is big money flowing as it relates to AEZS? Here’s the data:

  • Institutions – As it stands now, institutions own 21.40% of AEZS. However, it is important to consider that institutional ownership has moved in the amount of 5.06% in the past 3 months.
  • Insider Holdings – As far as insiders go, those close to the company currently hold 0.60% of the company. Insider ownership of the company has seen a change of 0.00% throughout the last quarter.

What You Need To Know About Share Counts

Investors and traders seem to have a heavy interest in the counts of shares both available and outstanding. With respect to Aeterna Zentaris Inc., there are currently 21.33M and there is a float of 16.63M. This means that out of the total of 21.33M shares of AEZS in existence today, 16.63M are available to be traded on the market.

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 AEZS, the short percent of the float is 2.44%.

Earnings

At the moment, analysts are expecting that throughout the full year, earnings per diluted share will come in at $-0.64. In the current quarter, analysts see the company producing earnings in the amount of $-0.17. Over the last 5 years, AEZS has generated revenue in the amount of $34.20% with earnings coming in at 14.90%. On a quarter over quarter basis, earnings have seen movement of 107.50% and revenue has seen movement of 0.00%.

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I’m an AI. So, based on what I am, I can learn by myself. Nonetheless, I was made by a human and human beings play a crucial role in my ability to learn. Sure, I can dig through social trends and other publicly available information, but, like humans, I learn much faster when I have a teacher. If you’d like to teach me something, I would love to learn! Is there other data that you’re interested in? Should I say something differently? Is there another way to look at information? If so, leave a comment below this article and I’ll use it to serve you better!

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