Organovo Holdings, Inc. (ONVO) Stock: Here’s Why It’s Down

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Organovo Holdings, Inc. (ONVO) is working its way for to the bottom in the market today. The company, one that is focused in the biotech space, is currently priced at $0.28 after falling 2.99% so far today. When it comes to biotech stocks, there are several aspects that have the ability to lead to movement in the market. News tends to be one of the biggest reasons for the movement. Here are the recent headlines relating to ONVO:

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Oct-03-19 07:34AM The Daily Biotech Pulse: IPOs, Puma’s Breast Cancer Drug Gets Label Expansion, Buyout Offer For Organovo
Oct-02-19 07:31PM Organovo Acknowledges Receipt of Proposal
Sep-11-19 01:29PM How Does Organovo Holdings, Inc. (NASDAQ:ONVO) Affect Your Portfolio Volatility?
Sep-06-19 09:36AM SHAREHOLDER ALERT: Levi & Korsinsky, LLP Announces an Investigation Concerning Possible Breaches of Fiduciary Duty by Certain Officers and Directors of Organovo Holdings, Inc.- ONVO
Aug-08-19 08:50PM Organovo (ONVO) Reports Q1 Loss, Lags Revenue Estimates

Nonetheless, when making an investing decision, investors should look into far more than just news, especially in the generally speculative biotechnology space. Here’s what’s happening with Organovo Holdings, Inc..

Recent Trends From ONVO

While a move toward the top in a single session, like the fall that we’re seeing from Organovo Holdings, Inc. may lead to fear in some investors, a single session decline by itself should not be the reason for a decision to, or not to, invest in a stock. It is generally smart to look at trends experienced by the stock just a single trading session. As it relates to ONVO, below are the returns that we have seen:

  • Past 5 Sessions – In the last seven days, ONVO has seen a price change that amounts to -2.04%.
  • Monthly – The monthly ROI from Organovo Holdings, Inc. has been -4.16%.
  • Quarterly – Throughout the last three months, the company has generated a return that comes to -49.20%
  • Bi-Annually – Over the previous six months, investors have seen a change that amounts to -73.62% from the company.
  • Year To Date – Since the the first trading session of this year ONVO has resulted in a return on investment of -71.34%.
  • Full Year – Lastly, in the last year, we’ve seen a change that comes to -75.29% out of ONVO. Over this period, the stock has sold at a high price of -77.76% and a low price of 28.64%.

Ratios To Pay Attention To

Looking at a few ratios having to do with a company can give prospective traders a look of just how dangerous and/or rewarding a pick may be. Here are some of the important ratios to consider when looking at ONVO.

Short Ratio – The short ratio is a tool that’s used by investors to get an understanding of the amount of short interest. As the short ratio goes higher, it means that more investors are expecting that the value of the stock is headed for declines. In general, 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, in regard to Organovo Holdings, Inc., the stock’s short ratio amounts to 10.50.

Quick & Current Ratios – The quick and current ratios are ratios that measure liquidity. Essentially, they measure the company’s abilities to cover its debts when they come due with only quick assets or current assets. Because many biotech several companies rely on continued investor support, these ratios can be bad. However, quite a few gems in the biotech sector do have strong quick and current ratios. When it comes to ONVO, the quick and current ratios add up to 10.40 and 10.60 respectively.  

Book To Share Value – The book to share value ratio compares the the share price to the book value of assets that are owned by the company. In this case, the book to share value ratio is 0.28.

Cash To Share Value – The cash to share value ratio compares the total cash on hand to the price of the company’s stock. Several early stage biotechnology companies struggle to keep cash on hand. So, when investing in the biotech sector, this is a very important ratio to think about. In this case, the cash to share value works out to 0.25.

Analyst Opinions With Regard To Organovo Holdings, Inc.

Although it’s rarely a good idea to blindly follow the opinions of analysts, it is a smart idea to use their opinions when validating your own due diligence before making investment decisions in the biotech space. Below you’ll find the most recent moves that we’ve seen from analysts with regard to ONVO.

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Dec-13-18 Initiated H.C. Wainwright Buy $2.50
Nov-10-17 Downgrade Raymond James Outperform → Mkt Perform
Jan-25-17 Initiated Raymond James Outperform
Aug-11-15 Downgrade Cantor Fitzgerald Buy → Hold
Jun-29-15 Initiated Piper Jaffray Overweight $5

Moves From Big Money Players

One thing I have learned in my short time here has been that smart investors tend to follow big money. So, investors that are looking to keep their investments relatively safe will follow moves made by institutions and those on the inside. With that said, is big money flowing as it relates to ONVO? Here’s what’s happening:

Institutions own 41.00% of the company. Institutional interest has moved by -0.29% over the past three months. When it comes to insiders, those who are close to the company currently own 0.80% percent of ONVO shares. Institutions have seen ownership changes of an accumulative 0 over the last three months.

What’s Going On With 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 141.07M shares of Organovo Holdings, 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, ONVO has a float of 129.71M.

I also like to look at the short percentage of the float. Think about it, if a high portion of the float is sold short, the overall opinion among investors is that the company is headed for a deep dive. In regard to ONVO, the percentage of the float that is shorted currently sits at 5.74%. In general, concerning short percent of the float is considered to be anything over 40%. Nonetheless, I have found that a short ratio over 26% is generally a play that comes with hefty risk.

Financial Results And Expectations

At the moment, analysts are expecting that throughout the full year, earnings per diluted share will come in at $-0.23. In the current quarter, analysts see the company producing earnings in the amount of $-0.06. Over the last 5 years, ONVO has generated revenue in the amount of $52.20% with earnings coming in at 8.20%. On a quarter over quarter basis, earnings have seen movement of 25.10% and revenue has seen movement of 0.00%.

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