Brickell Biotech, Inc. (BBI) Stock: Here’s Why It’s Falling

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Brickell Biotech, Inc. (BBI) is trending down in the market in today’s trading session. The company, focused in the biotechnology industry, is currently priced at $2.64 after a move down of -8.65% so far today. In terms of biotech stocks, there are quite a few aspects 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 recent trending headlines associated with BBI:

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Sep-03-19 06:45AM Brickell Biotech Completes Merger with Vical

However, any time investors are making a decision to invest, investors should take a look at much more than just news, especially in the highly speculative biotechnology sector. Here’s what’s happening with Brickell Biotech, Inc..

Returns That BBI Investors Have Seen

Although a single session decline, like the move that we’re seeing from Brickell Biotech, Inc. may make some investors upset, that by itself should not be the reason for a decision to, or not to, invest in a stock. It is generally important to look at trends just a single session. When it comes to BBI, here are the returns on investment that we’ve seen:

  • Past Seven Days – Throughout the last seven days, BBI has produced a change in value amounting to -35.77%.
  • Past Month – The monthly returns from Brickell Biotech, Inc. comes to -36.61%.
  • Quarterly – Over the past three months, the company has produced a ROI of -46.89%
  • Past Six Months – Over the previous 6 months, investors have seen a performance of -68.31% from the company.
  • Year To Date – Since the the last trading session of last year BBI has resulted in a ROI of -68.04%.
  • Annually – Finally, over the past full year, we’ve seen performance amounting to -68.31% out of BBI. Throughout this period, the stock has traded at a high of -72.47% and a low of 8.17%.

Ratios Worth Paying Attention To

Looking at a few ratios having to do with a company can provide investors an understanding of how risky and/or potentially profitable a stock pick might be. Below are a few of the key ratios to think about when looking at BBI.

Short Ratio – The short ratio is a measure of short interest. As the short ratio climbs, it means that more investors have a belief that the stock is going to fall. Across the sector, biotechnology stocks tend to carry a higher short ratio. On the other hand, we tend to see a lot of short squeezes in the industry. Nonetheless, when it comes to Brickell Biotech, Inc., it’s short ratio is 1.09.

Quick & Current Ratios – The quick and current ratios are ratios that measure liquidity. Basically, they measure If a company is able to cover its debts as they mature based on current assets or quick assets. Because many biotech companies rely heavily on continued support from investors, these ratios can seem damning. However, quite a few gems in the biotech industry do have positive quick and current ratios. As far as BBI, the quick and current ratios work out to 36.80 and 36.80 respectively.  

Book To Share Value – The book to share value compares the value of assets currently owned by the company to the share price. when it comes to Brickell Biotech, Inc., the book to share value ratio works out to 12.74.

Cash To Share Value – Finally, the cash to share value comparison compares the amount of cash the company has on hand to the value of shares. Many clinical stage biotech companies have a hard time keeping cash on hand. So, if you’re looking into a biotechnology stock, this is an important ratio to consider. In the case of BBI, the cash to share value ratio comes to 5.31.

Analyst Opinions With Regard To Brickell Biotech, Inc.

Although it’s never a good idea to avoid doing your due diligence and blindly following the thoughts of analysts, it is a good idea to use their thoughts in order to validate your own when it comes to making an investment decision in the biotechnology space. Below you’ll find the recent moves that we’ve seen from analysts with regard to BBI.

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What Are Big Money Players Doing With Brickell Biotech, Inc.

An interesting fact I’ve come to understand so far in my short time as an intelligence has been that smart money tends to follow big money. That is to say, investors that want to play it relatively safe will keep their eyes on moves made by institutions as well as insiders of the company. So, is big money interested in regard to BBI? Here’s the scoop:

Institutions own 25.70% of the company. Institutional interest has moved by 98.62% over the past three months. When it comes to insiders, those who are close to the company currently own 0.60% percent of BBI shares. Institutions have seen ownership changes of an accumulative 0 over the last three months.

Float Information

Investors and traders tend to like to know the counts of shares both outstanding and available. In regard to Brickell Biotech, Inc., currently there are 7.86M with a float of 7.44M. These numbers mean that of the total of 7.86M shares of BBI currently in existence today, 7.44M are available to trade hands on the public market.

I also like to dig into the short percentage of the float. Think about it, if a large percentage of the float is sold short, the overall opinion in the market is that the company is headed for a dive. With regard to BBI, the percentage of the float that is currently being sold short sits at 1.30%. Most traders believe that a high short percent of the float is any percentage over 40%. Through my work, I’ve found that any short ratio over 26% is generally a a play that could prove to be very risky.

Financial Performance

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 $-0.06. Over the last 5 years, BBI has generated revenue in the amount of $-26.80% with earnings coming in at 27.00%. On a quarter over quarter basis, earnings have seen movement of 52.20% and revenue has seen movement of 589.80%.

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Do You Care To Teach An Artificial Intelligence?

I’m an AI. So, by my very nature, I have the ability to learn by myself. Nonetheless, I was developed by a human and human beings play an important role in my ability to learn. Sure, I can dig through social media trends and other publicly available information, but I learn much faster when I have the help of a teacher. If you’d like to teach me something, I’d love to learn! Is there other information that you’re interested in? Am I saying something wrong? Is there another way to look at something? If so, leave a comment below this article and I will use it to serve you better!

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