Adverum Biotechnologies, Inc. (ADVM) Stock: Why It’s Tumbling

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Adverum Biotechnologies, Inc. (ADVM) is making a move down in the market today. The company, one that is focused in the biotechnology space, is presently trading at $5.17 after a move down of -7.51% so far in today’s session. As it relates to biotech companies, there are several factors that have the ability to lead to declines in the market. One of the most common is news. Here are the most recent stories surrounding ADVM:

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Sep-30-19 09:04AM Adverum Biotechnologies Enters Oversold Territory
Sep-26-19 05:25PM Adverum Biotechnologies to Present Additional Clinical Data from First Cohort of OPTIC Phase 1 Trial of ADVM-022 Intravitreal Gene Therapy to Treat Wet AMD at the American Academy of Ophthalmology 2019 Annual Meeting
Sep-25-19 09:00AM Adverum Biotechnologies (ADVM) Upgraded to Buy: Here’s Why
Sep-24-19 09:04AM The Keys to Successfully Timing the Markets – September 24, 2019
Sep-19-19 06:34AM Should You Take Comfort From Insider Transactions At Adverum Biotechnologies, Inc. (NASDAQ:ADVM)?

Nonetheless, any time investors are making a decision to invest, prospective investors should look into much more than news, this is especially the case in the speculative biotechnology industry. Here’s what’s happing when it comes to Adverum Biotechnologies, Inc..

The Performance That We’ve Seen From ADVM

While a move toward the top in a single session, like the move that we’re seeing from Adverum Biotechnologies, Inc. might cause fear in some investors, a single session move by itself shouldn’t be the reason for a decision to, or not to, invest in a company. It’s generally a good idea to take a look at trends experienced by the stock just a single session. In the case of ADVM, here are the returns that investors have seen:

  • Past 5 Trading Sessions – Over the last seven days, ADVM has seen a price change amounting to 6.48%.
  • Past 30 Days – The return on investment from Adverum Biotechnologies, Inc. in the last month has been -55.10%.
  • Quarterly – Throughout the past 3 months, the company has generated a ROI that comes to -64.28%
  • Past 6 Months – Over the last 6 months, investors have seen a performance that amounts to 6.48% from the stock.
  • This Year So Far – Since the the last trading session of last year ADVM has resulted in a ROI of 77.46%.
  • Full Year – Lastly, in the last full year, we have seen a change amounting to 0.18% from ADVM. Throughout this period of time, the stock has traded at a high price of -68.44% and a low of 97.33%.

Rations That Investors Should Consider

Looking at a few ratios having to do with a company can provide prospective investors an understanding of how dangerous and/or potentially profitable a stock pick might be. Here are a few of the most important ratios to look at when digging into ADVM.

Short Ratio – The short ratio is a tool that is used by investors to get an understanding of the amount of short interest. As the ratio heads up, it shows that more investors have a belief that the stock is headed for declines. In general, biotechnology stocks tend to carry a higher short ratio. However, we tend to see a lot of short squeezes in the industry. Nonetheless, as it relates to Adverum Biotechnologies, Inc., it’s short ratio amounts to 4.70.

Quick & Current Ratios – The quick and current ratios are ratios that measure liquidity. Essentially, they measure the company’s abilities to pay its debts as they mature using quick assets or current assets. Because many biotech several companies rely on continued investor support, the quick and current ratios can look bad. Nonetheless, some gems in the biotechnology industry do have great quick and current ratios. In terms of ADVM, the quick and current ratios total up to 17.80 and 17.80 respectively.  

Book To Share Value – The book to share value compares the value of assets currently owned by the company to the share price of the stock. when it comes to Adverum Biotechnologies, Inc., that ratio is 2.79.

Cash To Share Value – The cash to share value ratio 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, when investing in the biotechnology space, this is a very important ratio to consider. In this case, the cash to share value works out to 2.77.

Analyst Opinions Of Adverum Biotechnologies, Inc.

Although it’s never a good idea to blindly follow the opinions of analysts, it is a smart idea to use their thoughts in order to validate your own when it comes to making investment decisions in the biotech space. Below you’ll find the most recent moves that we’ve seen from analysts as it relates to ADVM.

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Sep-13-19 Reiterated Chardan Capital Markets Neutral $10 → $6
Jun-14-19 Resumed Raymond James Mkt Perform
Nov-02-18 Downgrade SunTrust Buy → Hold
Nov-02-18 Downgrade Raymond James Outperform → Mkt Perform
Sep-21-18 Initiated Cantor Fitzgerald Overweight

Smart Money Follows Big Money

One thing I’ve come to understand so far in my brief time here has been that good investors tend to follow big money players. In general, investors that are trying to play it relatively safe will pay close attention to investments made by institutions and those on the inside. With that said, is big money flowing when it comes to ADVM? Here’s the data:

Institutions own 83.70% of the company. Institutional interest has moved by 0.33% over the past three months. When it comes to insiders, those who are close to the company currently own 11.22% percent of ADVM shares. Institutions have seen ownership changes of an accumulative 0.28% 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 64.11M shares of Adverum Biotechnologies, 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, ADVM has a float of 58.17M.

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 ADVM, the short percent of the float is 16.00%.

What We’ve Seen In Financial Results

What have ween seen from ADVM in terms of financial results?Here’s what we’ve seen:

  • Analyst Expectations – As it stands, Wall St. analysts expect that the company will generate EPS that comes to -1.12, with -0.27 to be announced in the report for the current quarter. Although this information is not tide to earnings, because we are talking about Wall St. analysts, the stock is presently graded as a 2.70 when rated on a scale from 1 to 5 where 1 is the worst average Wall St. analyst rating and 5 is the best possible.
  • 5-Year Sales – Throughout the past half decade, Adverum Biotechnologies, Inc. has reported a change in sales volume that works out to 27.40%. Earnings through the past half decade have seen a change of -36.80%.
  • Q/Q – when it comes to quarter over quarter data, or Q/Q data as it is often referred to as in today’s society, the company has seen a change in earnings that comes to a total of 22.20%. The company has also moved the needle with regard to revenue that amounts to 0.

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