Wave Life Sciences Ltd. (WVE) Stock: A Biotech Stock That’s Seeing Strong Gains

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Wave Life Sciences Ltd. (WVE) is working its way for to the top in the market in today’s trading session. The stock, focused in the biotech sector, is presently trading at $19.16 after a move up of 0.00% so far today. As it relates to biotech companies, there are quite a few aspects that have the potential to generate gains in the market. News is one of the most common reasons for movement. Here are the most recent stories relating to WVE:

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Sep-18-19 02:12PM Are Insiders Selling Wave Life Sciences Ltd. (NASDAQ:WVE) Stock?
Sep-16-19 07:30AM Wave Life Sciences Announces Fast Track Designation from U.S. FDA for Suvodirsen
Sep-06-19 08:30AM Wave Life Sciences to Host Analyst and Investor Research Day on October 7, 2019
Aug-26-19 04:05PM Wave Life Sciences to Present at the Morgan Stanley Global Healthcare Conference
Aug-20-19 12:20PM Sarepta’s FDA rejection could have ripple effect in other Duchenne biotechs

However, any time investors are making a decision with regard to investing, investors should look at far more than just news, especially in the speculative biotechnology sector. Here’s what’s happening with Wave Life Sciences Ltd..

Returns That WVE Investors Have Seen

Although a single session gain, like the move that we’re seeing from Wave Life Sciences Ltd. may make some investors happy, 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 generally a good idea to look into trends experienced by the stock beyond a single session. As it relates to WVE, here are the returns that investors have experienced:

  • Past 5 Sessions – Over the past seven days, WVE has produced a change in price that amounts to 2.19%.
  • Past 30 Days – The return on investment from Wave Life Sciences Ltd. in the last 30 days comes to -23.48%.
  • Quarterly – Throughout the past 3 months, the stock has produced a ROI that works out to -26.95%
  • Past Six Months – Over the past six months, investors have seen a change that works out to -43.76% from the stock.
  • Year To Date – Since the open of this year WVE has generated a ROI of -54.42%.
  • Annually – Finally, over the past full year, investors have seen performance of -55.79% from WVE. Throughout this period of time, the stock has traded at a high of -62.93% and a low price of 8.93%.

Key Ratios

Looking at a few key ratios having to do with a stock generally gives prospective investors an understanding of just how risky and/or rewarding a stock pick might be. Below are some of the most important ratios to consider when digging into WVE.

Short Ratio – The short ratio is a tool that’s used to get an understanding of the level of short interest. As the ratio climbs, it means that more investors are expecting that the price of the stock is headed for declines. Across the sector, biotech stocks tend to have a higher short ratio. On the other hand, we also see a lot of short squeezes in the sector. Nonetheless, when it comes to Wave Life Sciences Ltd., the stock’s short ratio is 15.99.

Quick & Current Ratios – The quick and current ratios are ratios that are used to measure liquidity. Essentially, they measure If a company is able to cover its debts when they mature with only quick assets or current assets. In the biotech industry, several companies rely on the continuation of support from investors, the current and quick ratios can be damning. Nonetheless, quite a few good picks in the biotech space come with good quick and current ratios. As it relates to WVE, the quick and current ratios total up to 2.30 and 2.30 respectively.  

Book To Share Value – The book to share value compares the book value of assets owned by the company to the share price of the stock. In this particular case, the book to share value ratio is 4.68.

Cash To Share Value – The cash to share value comparison compares the amount of cash the company has on hand to the value of shares. Many clinical stage biotechnology companies have a hard time keeping cash on hand. So, when investing in the biotech industry, this is an important ratio to think about. In this case, the cash to share value ratio works out to 7.36.

What Analysts Say About Wave Life Sciences Ltd.

While it’s rarely a good idea to unknowingly follow the opinions of analysts, it is a good idea to consider their opinions in order to validate your own when it comes to making an investment decision in the biotech industry. Here are the most recent moves that we’ve seen from analysts when it comes to WVE.

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Jul-15-19 Initiated Cowen Market Perform
Apr-17-19 Reiterated H.C. Wainwright Buy $49 → $33
Aug-07-18 Initiated Stifel Buy $56
Jul-23-18 Initiated H.C. Wainwright Buy $49
Mar-19-18 Reiterated Mizuho Buy $34 → $65

What Institutions And Insiders Think Of Wave Life Sciences Ltd.

One thing that I’ve learned in my brief time as an intelligence is that smart investors tend to follow big money investors. In general, investors that are looking to keep the risk down will keep their eyes on trades made by institutions as well as insiders of the company. So, how does the big money flow in regard to WVE? Here’s what’s happening:

  • Institutional Investors – Currently, institutional investors hold 92.70% of Wave Life Sciences Ltd.. Nonetheless, it is important to mention that institutional ownership has seen a move in the amount of 2.11% over the last 3 months.
  • Insider Moves – As far as insiders go, members of the management team and others close to WVE currently own 0.20% of Wave Life Sciences Ltd.. Insider ownership of the company has changed in the amount of 0 over the last 3 months.

Looking At Share Counts

Traders seem to have a heavy interest in the total numbers of shares both available and outstanding. When it comes to Wave Life Sciences Ltd., there are currently 34.37M and there is a float of 27.81M. This means that out of the total of 34.37M shares of WVE in existence today, 27.81M are available to trade hands by the public.

I also like to follow the short percent. After all, if a large portion of the float available for trading is shorted, the overall opinion among investors is that the company is headed for a deep dive. As far as WVE, the percentage of the float that is currently being sold short sits at 13.12%. Most investors would say that a high short percent of the float would be considered to be anything over 40%. Nonetheless, I’ve found that any short ratio over 26% is generally a a play that could prove to be very risky.

What We’ve Seen In earnings results

What have ween seen from WVE in terms of financial results?Here’s what you’re looking for:

  • Analyst Expectations – At the moment, Wall Street analysts expect that the company will generate earnings per diluted share of -4.24, with -1.34 to be reported in the earnings announcement for the current quarter. Although this data is not associated with earnings, since we’re talking on the topic of Wall Street analysts, the stock is currently graded as a 2.00 when rated on a scale from 1 to 5 on which 1 is the poorest possible analyst grade and 5 is the best possible.
  • 5-Year Sales – Throughout the last half decade, Wave Life Sciences Ltd. has generated a movement in sales volume that works out to be 0. EPS through the period have experienced movement in the amount of 0.
  • Quarter Over Quarter – when it comes to quarter over quarter earnings data, or Q/Q data as it is generally referred to as in the world of humans, WVE has experienced a earnings change by 0.60%. WVE has also experienced movement when it comes to sales volume in the amount of 55.10%.

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