Vermillion, Inc. (VRML) Stock: Why It’s Falling In Value

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Vermillion, Inc. (VRML) is trending down in the market today. The stock, one that is focused in the biotechnology space, is presently trading at $0.45 after a move down of -5.73% so far today. As it relates to biotech stocks, there are quite a few factors that have the potential to cause movement in the market. News tends to be one of the biggest reasons for the movement. Here are the most recent stories relating to VRML:

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Oct-15-19 08:00AM MicroCap Rodeo – Investor Conference Lineup for October 15 and 16, 2019
Oct-08-19 04:15PM Vermillion to Report Third Quarter 2019 Financial Results on November 12
Oct-04-19 01:32PM Investors Who Bought Vermillion (NASDAQ:VRML) Shares Five Years Ago Are Now Down 73%
Sep-30-19 08:00AM Vermillion to Participate at 2019 Cantor Global Healthcare Conference
Sep-04-19 08:00AM Vermillion Announces Two Independent Publications Showing OVA1® (MIA- Multivariate Index Assay) Demonstrates Improved Ovarian Malignancy Risk Detection in African-American Women

Nonetheless, any time investors are making a decision with regard to investing, prospective investors should look at much more than just news, especially in the generally speculative biotechnology industry. Here’s what’s happening with Vermillion, Inc..

Recent Movement Out of VRML

While a decline in a single session, like what we’re seeing from Vermillion, Inc. may lead to fear in some investors, that by itself should not be the reason for a decision to, or not to, invest in a stock. It is generally smart to dig into trends experienced by the stock beyond a single session. As it relates to VRML, below are the trends that investors have experienced:

  • Past 5 Sessions – Throughout the last week, VRML has produced a change in price that amounts to 12.23%.
  • Past Month – The monthly ROI from Vermillion, Inc. has been -22.34%.
  • Quarterly – Throughout the last quarter, the company has produced a ROI that comes to -44.66%
  • Past 6 Months – Throughout the past 6 months, we have seen a change of -66.23% from the stock.
  • YTD – Since the open of this year VRML has produced a return on investment of 50.83%.
  • Full Year – Lastly, throughout the last year, we have seen performance of -20.05% out of VRML. Throughout this period of time, the stock has traded at a high price of -71.18% and a low of 67.53%.

Important Ratios

Digging into various key ratios associated with a company can provide prospective investors a look of how dangerous and/or rewarding a pick may be. Here are some of the key ratios to consider when looking at VRML.

Short Ratio – The short ratio is a measure of short interest. As the short ratio climbs, it shows that more investors have a belief that the price of the stock is headed for declines. In general, biotechnology stocks can have a higher short ratio. However, we also tend to see a lot of short squeezes in the industry. Nonetheless, in regard to Vermillion, Inc., it’s short ratio is 9.65.

Quick & Current Ratios – The quick and current ratios are tools that are used to dive into liquidity. Basically, they measure the company’s abilities to pay its debts when they come due using current assets or quick assets. In the biotechnology sector, many companies rely heavily on the continuation of support from investors, the current and quick ratios can seem upsetting. However, some gems in the biotechnology industry do have good quick and current ratios. As far as VRML, the quick and current ratios total up to 4.90 and 4.90 respectively.  

Book To Share Value – The book to share value compares the current 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 works out to 0.18.

Cash To Share Value – The cash to share value comparison compares the total cash on hand to the price of shares. Several early stage biotechnology companies have a hard time keeping cash on hand. So, if you’re looking into a stock in the biotech industry, this is an important ratio to think about. As it relates to VRML, the cash to share value ratio comes to 0.17.

What Analysts Say About Vermillion, Inc.

Although it’s never a good idea to avoid doing your due diligence and blindly following the opinions of analysts, it is a smart idea to consider their thoughts when validating your own due diligence when it comes to making an investment decision in the biotechnology sector. Here are the most recent moves that we have seen from analysts when it comes to VRML.

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Mar-29-16 Reiterated Canaccord Genuity Buy $4 → $2.50
Oct-25-12 Upgrade Ladenburg Thalmann Sell → Neutral
Mar-07-12 Downgrade Ladenburg Thalmann Neutral → Sell
Sep-16-11 Initiated Ladenburg Thalmann Neutral

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 VRML, here’s what we’re seeing:

  • Institutional Investors – As it stands now, institutional investors hold 27.20% of VRML. Nonetheless, it’s worth noting that the ownership held by institutions has changed in the amount of 0.04% over the last quarter.
  • Insider Holdings – as it relates to insiders, members of the management team and others close to VRML currently hold 0.60% of the company. Their ownership of the company has moved 0 in the last quarter.

What’s The Float Looking Like?

Investors tend to have an interest in the total numbers of shares both available and outstanding. When it comes to Vermillion, Inc., currently there are 96.59M and there is a float of 51.14M. These data mean that out of the total of 96.59M shares of VRML currently in existence today, 51.14M are able to be traded in the public space.

I also find it important to pay attention to the short percent. Think about it, when a high portion of the float available for trading is shorted, the overall feeling among traders is that the company is headed for a steep decline. As far as VRML, the percentage of the float that is currently being sold short sits at 4.54%. In general, concerning short percent of the float is anything over 40%. Nonetheless, I have found that any short ratio over 26% is generally a a play that could prove to be very risky.

Earnings

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

  • Analyst Expectations – As it stands, analysts are expecting that the company will generate EPS of 0, with 0 being announced in the earnings report for the current quarter. Although this information is not based on earnings, since we are talking about Wall Street analysts, the stock is currently graded as a 0 on a scale from 1 to 5 where 1 is the worst possible Wall St. analyst grade and 5 is the best.
  • 5-Year Sales – Throughout the last half decade, Vermillion, Inc. has generated a change in sales volume in the amount of 3.50%. Earnings per diluted share through the past 5 years have generated movement in the amount of 17.40%.
  • Quarter Over Quarter – In terms of quarter over quarter earnings performance, or Q/Q data as it is commonly represented in the world of humans, VRML has experienced a change in earnings that amounts to -28.80%. Vermillion, Inc. has also experienced a change in regard to sales in the amount of 57.10%.

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