Puma Biotechnology, Inc. (PBYI) Stock: Is This Biotechnology Stock Worth Your Investment?


Puma Biotechnology, Inc. (PBYI) is headed up in the market in today’s trading session. The stock, focused in the biotechnology sector, is presently trading at $11.91 after a move up of 10.07% so far in today’s session. When it comes to biotechnology stocks, there are a number of factors that have the potential to lead to gains in the market. News is one of the most common reasons for movement. Here are the most recent trending headlines surrounding PBYI:

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Sep-16-19 10:03AM Do Options Traders Know Something About Puma Biotech (PBYI) Stock We Don’t?
Sep-13-19 05:27PM Roche’s New Perjeta Combo Meets Goal in Breast Cancer Study
Sep-12-19 10:13AM Puma Biotech’s sNDA for Nerlynx Combo Gets FDA Acceptance
Sep-11-19 08:05AM Puma Biotechnology Announces U.S. FDA Acceptance of Supplemental New Drug Application for Neratinib to Treat HER2-Positive Metastatic Breast Cancer
Sep-10-19 11:41AM Puma Biotechnology (NASDAQ:PBYI) Has Debt But No Earnings; Should You Worry?

However, any time investors are making an investing decision, investors should focus on far more than just news, this is especially the case in the highly speculative biotechnology sector. Here’s what’s going on with Puma Biotechnology, Inc..

Recent Moves From PBYI

While a gain in a single session, like what we’re seeing from Puma Biotechnology, Inc. may make some investors jump for joy, a single session move by itself should not be the basis of a decision to, or not to, buy a company’s stock. It’s always important to dig into trends experienced by the stock further out than a single session. In the case of PBYI, below are the trends that investors have experienced:

  • Past Seven Days – In the last week, PBYI has produced a change in value that amounts to 1.19%.
  • Past 30 Days – The monthly ROI from Puma Biotechnology, Inc. works out to 6.43%.
  • Past Quarter – Throughout the last three months, the stock has generated a ROI of -9.84%
  • Past Six Months – Over the last 6 months, we’ve seen a performance that equates to -69.82% from the stock.
  • YTD – Since the open of this year PBYI has generated a ROI of -41.47%.
  • Full Year – Finally, in the last year, investors have seen a change amounting to -74.95% from PBYI. Over this period of time, the stock has sold at a high price of -75.19% and a low price of 40.95%.

Ratios To Watch

Looking at various ratios having to do with a stock generally gives prospective investors a view of how risky and/or potentially profitable a pick may be. Below are some of the key ratios to think about when looking at PBYI.

Short Ratio – The short ratio is a measure of short interest. The higher this ratio, the more investors have a belief that the stock is going to tumble. Across the sector, biotechnology stocks tend to come with a higher short ratio. On the other hand, we also see quite a few short squeezes in the space. Nonetheless, when it comes to Puma Biotechnology, Inc., it’s short ratio comes to 5.83.

Quick & Current Ratios – The quick and current ratios are tools that get an idea of the company’s liquidity. Essentially, they measure the company’s abilities to pay its debts as they mature with only quick assets or current assets. Because many biotech several companies rely heavily on the continuation of investor support, the current and quick ratios can be upsetting. However, quite a few gems in the biotechnology industry come with positive current and quick ratios. As far as PBYI, the quick and current ratios come to 1.70 and 1.70 respectively.  

Book To Share Value – The book to share value ratio compares the the share price to the current book value of assets that are owned by the company. In this case, that ratio equates to 0.56.

Cash To Share Value – Finally, the cash to share value ratio compares the total amount of cash the company has on hand to the price of the company’s stock. Many early stage biotechnology companies struggle to keep cash on hand. So, if you’re looking into a stock in the biotech space, this is an important ratio to consider. As it relates to PBYI, the cash to share value works out to 2.93.

Analyst Opinions With Regard To Puma Biotechnology, Inc.

While it’s not a smart idea to blindly follow the opinions of analysts, it is a smart idea to use their analysis to validate your own thoughts when it comes to making an investment decision in the biotech sector. Here are the recent moves that we have seen from analysts with regard to PBYI.

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May-10-19 Downgrade Citigroup Buy → Neutral $24
May-10-19 Downgrade Cantor Fitzgerald Overweight → Neutral $57 → $20
Jan-17-19 Initiated Leerink Partners Mkt Perform $21
Jan-03-19 Downgrade Guggenheim Buy → Neutral
Nov-19-18 Upgrade Goldman Sell → Neutral

Show Me The Big Money

An interesting fact that I have come to understand so far in my brief time alive, or somewhat alive is that good investors tend to follow big money investors. So, investors that are trying to play it relatively safe will keep their eyes on trades made by institutions as well as insiders of the company. With that said, is big money flowing in regard to PBYI? Here’s what’s going on:

  • Institutions – As it stands now, institutions own 91.50% of the company. On the other hand, it’s important to consider that institutional ownership has seen a move in the amount of 1.56% throughout the last quarter.
  • Investors On The Inside – with regard to insiders, insiders of the company currently hold 11.20% of the company. Insider ownership of the company has seen a move of -0.44% in the past quarter.

Interested In How Many Shares Are Available?

Investors seem to be interested in the counts of shares both available and outstanding. As it relates to Puma Biotechnology, Inc., currently there are 40.16M with a float of 34.52M. These data mean that of the total of 40.16M shares of PBYI in existence today, 34.52M are able to trade hands 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 PBYI, the short percent of the float is 25.66%.

What We’ve Seen In Financial Results

At the moment, analysts are expecting that throughout the full year, earnings per diluted share will come in at $-1.52. In the current quarter, analysts see the company producing earnings in the amount of $-0.69. Over the last 5 years, PBYI has generated revenue in the amount of $0 with earnings coming in at -9.50%. On a quarter over quarter basis, earnings have seen movement of 17.40% and revenue has seen movement of 6.10%.

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