Neptune Wellness Solutions Inc. (NEPT) Stock: A Biotech Stock That’s Headed Down

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Neptune Wellness Solutions Inc. (NEPT) is trending down in the market today. The company, one that is focused in the biotechnology space, is presently trading at $3.37 after tumbling -9.16% so far in today’s session. As it relates to biotech companies, there are quite a few aspects that have the ability to generate movement in the market. News tends to be one of the biggest reasons for the movement. Here are the recent headlines centered around NEPT:

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Oct-10-19 12:59PM 3 Cannabis Extraction Stocks Poised To Rally
Oct-08-19 09:35AM International Flavors & Neptune Team Up to Develop Products
Oct-04-19 10:17AM Neptune Wellness Solutions Partners With American Media
06:30AM Neptune Announces New Strategic Partnership with American Media LLC.
Oct-02-19 08:31AM Neptune Wellness Looks To Co-Develop CBD Products With International Flavors & Fragrances

However, when making a decision to invest, prospective investors should look at far more than just news, especially in the highly speculative biotech sector. Here’s what’s happing when it comes to Neptune Wellness Solutions Inc..

The Performance That We’ve Seen From NEPT

Although a move toward the top in a single session, like the move that we’re seeing from Neptune Wellness Solutions Inc. may make some investors fearful, a single session move alone shouldn’t be the basis of a decision to, or not to, invest in a company. It is always a good idea to look at trends experienced by the stock just a single trading session. As it relates to NEPT, below are the trends that investors have seen:

  • Past 5 Sessions – In the past seven days, NEPT has seen a change in price amounting to -8.42%.
  • Past Month – The monthly performance from Neptune Wellness Solutions Inc. comes to -27.53%.
  • Quarterly – Over the last quarter, the company has generated a ROI that works out to -30.08%
  • Past Six Months – In the past six months, we have seen a change of -3.71% from the company.
  • YTD – Since the open of this year NEPT has resulted in a ROI of 32.68%.
  • Annually – Finally, over the past full year, we have seen performance of -18.99% out of NEPT. In this period of time, the stock has traded at a high price of -48.71% and a low of 39.20%.

Rations That Traders Should Look Into

Looking at various key ratios associated with a stock can provide prospective traders a look of how dangerous and/or rewarding a pick might be. Below are a few of the key ratios to think about when digging into NEPT.

Short Ratio – The short ratio is a tool that’s used by traders to measure the level of short interest. The higher this ratio, the more investors believe that the value of the stock is going to fall. Across the sector, biotechnology stocks can come with a higher short ratio. On the other hand, we tend to see quite a few short squeezes in the space. Nonetheless, in regard to Neptune Wellness Solutions Inc., the stock’s short ratio is 4.90.

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 cover its debts as they mature with only quick assets or current assets. Because many biotech many companies are heavily reliant on continued support from investors, these ratios can be bad. Nonetheless, quite a few gems in the biotech industry do have strong quick and current ratios. As far as NEPT, the quick and current ratios work out to 0 and 0 respectively.  

Book To Share Value – The book to share value compares the the share price to the book value of assets owned by the company. when it comes to Neptune Wellness Solutions Inc., that ratio comes in at 0.80.

Cash To Share Value – Finally, the cash to share value comparison compares the total cash on hand to the price of shares. Several early stage biotechnology companies struggle to keep cash on hand. So, when investing in the biotechnology sector, this is an important ratio to consider. In this case, the cash to share value ratio comes to 0.

Analyst Opinions With Regard To Neptune Wellness Solutions Inc.

Although it’s never a good idea to blindly follow the thoughts of analysts, it is a good idea to use their thoughts in order to validate your own before making an investment decision in the biotech space. Below are the recent moves that we’ve seen from analysts as it relates to NEPT.

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Jan-30-15 Resumed ROTH Capital Buy $5

Moves From Big Money Players

Humans that are into investing seem to be infatuated with the term “Smart money follows big money.” It makes sense. Big money became big money by making smart decisions in the market. So, by following the moves of big money institutions and insiders, we can get a glimpse of what market pros think about a stock. When it comes to big money interest in NEPT, here’s what we’re seeing:

Institutions own 17.35% of the company. Institutional interest has moved by 0 over the past three months. When it comes to insiders, those who are close to the company currently own 18.84% percent of NEPT shares. Institutions have seen ownership changes of an accumulative 0.00% over the last three months.

Float Information

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 92.47M shares of Neptune Wellness Solutions 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, NEPT has a float of 63.66M.

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 NEPT, the short percent of the float is 8.98%.

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 $0. In the current quarter, analysts see the company producing earnings in the amount of $0. Over the last 5 years, NEPT has generated revenue in the amount of $0 with earnings coming in at 0. On a quarter over quarter basis, earnings have seen movement of 0 and revenue has seen movement of -15.60%.

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