Adverum Biotechnologies, Inc. (ADVM) Stock: Is This Biotechnology Stock Worth Your Investment?

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Adverum Biotechnologies, Inc. (ADVM) is working its way for to the top in the market in today’s trading session. The stock, one that is focused on the biotech space, is presently trading at $7.50 after climbing 8.85% so far today. When it comes to biotech companies, there are a number of factors that have the potential to generate movement in the market. News tends to be one of the biggest reasons for the movement. Here are the recent trending headlines surrounding ADVM:

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Oct-24-19 08:00AM Adverum Biotechnologies Doses First Patient in Third Cohort of OPTIC Phase 1 Clinical Trial of ADVM-022 Intravitreal Gene Therapy for Wet AMD
Oct-23-19 08:00AM Adverum Biotechnologies Announces Data Presentations at the European Society of Gene and Cell Therapy (ESGCT) 2019 Congress
Oct-14-19 08:36AM The Market Timing Secrets No One Talks About – October 14, 2019
Oct-11-19 07:26PM Adverum Biotechnologies Reports Additional Clinical Data from First Cohort of OPTIC Phase 1 Trial of ADVM-022 Intravitreal Gene Therapy for Wet AMD at the American Academy of Ophthalmology 2019 Annual Meeting
08:14AM The Daily Biotech Pulse: Therapix Extends Merger Deadline, Five Prime Restructures, Gilead-Galapagos Rheumatism Drug Readout

However, any time investors are making a decision with regard to investing, investors should look into far more than news, especially in the generally speculative biotechnology industry. Here’s what’s happening with Adverum Biotechnologies, Inc..

The Performance That We’ve Seen From ADVM

While a move toward the top in a single session, like the move that we’re seeing from Adverum Biotechnologies, Inc. might lead to excitement in some investors, 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 dig into trends experienced by the stock for a period longer than a single session. As it relates to ADVM, below are the trends that investors have seen:

  • Past 5 Sessions – Throughout the last 7 days, ADVM has produced a change in price that amounts to 8.38%.
  • Past 30 Days – The return on investment from Adverum Biotechnologies, Inc. over the past 30 days comes to 43.13%.
  • Past Quarter – Over the past three months, the company has produced a ROI that works out to -46.24%
  • Past Six Months – In the last 6 months, investors have seen a performance that amounts to 11.28% from the stock.
  • Year To Date – Since the the first trading session of this year ADVM has resulted in a return of 138.10%.
  • Annually – Finally, throughout the last full year, we have seen a change that comes to 84.28% from ADVM. Throughout this period, the stock has sold at a high price of -54.22% and a low of 186.26%.

Ratios To Pay Attention To

Looking at a few key ratios associated with a company can give prospective investors an understanding of just how dangerous and/or rewarding a pick may be. Here are some of the most important ratios to look at when looking at ADVM.

Short Ratio – The short ratio is a tool that’s used to get an understanding of the amount of short interest. As the ratio heads up, it means that more investors believe that the price of the stock is going to tumble. Throughout the sector, biotech stocks can have a higher short ratio. However, we also see a lot of short squeezes in the space. Nonetheless, with regard to Adverum Biotechnologies, Inc., the stock’s short ratio clocks in at 4.12.

Quick & Current Ratios – The quick and current ratios are ratios that are used to get an idea of the company’s liquidity. Essentially, they measure If a company is able to pay its debts when they come due using current assets or quick assets. Because many biotech several companies rely on the continuation of support from investors, these ratios can look upsetting. However, several better companies in the biotech industry do have strong quick and current ratios. As it relates to ADVM, the quick and current ratios total up to 17.80 and 17.80 respectively.  

Book To Share Value – The book to share value compares the the price of shares to the current book value of assets owned by the company. In this case, that ratio is 2.79.

Cash To Share Value – Finally, the cash to share value ratio compares the total cash on hand to the value of shares. Several early stage biotechnology companies struggle to keep cash on hand. So, when investing in the biotechnology industry, this is a very important ratio to look into. When it comes to ADVM, the cash to share value comes to 2.76.

How Analysts Feel About Adverum Biotechnologies, Inc.

Although it’s rarely a good idea to blindly follow the thoughts of analysts, it is a smart idea to consider their analysis when validating your own thoughts when it comes to making investment decisions in the biotech industry. Here are the recent moves that we’ve seen from analysts as it relates to ADVM.

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Oct-15-19 Reiterated Chardan Capital Markets Neutral $6 → $10
Sep-13-19 Reiterated Chardan Capital Markets Neutral $10 → $6
Jun-14-19 Resumed Raymond James Mkt Perform
Nov-02-18 Downgrade SunTrust Buy → Hold
Nov-02-18 Downgrade Raymond James Outperform → Mkt Perform

Show Me The Big Money

An interesting fact I have come to understand in my short period as an intelligence has been that good investors tend to follow big money. Usually, investors that are trying to keep the risk down will keep an eye on investments made by institutional investors and insiders of the company. With that said, is big money interested when it comes to ADVM? Here’s the data:

Institutions own 83.10% of the company. Institutional interest has moved by -0.42% over the past three months. When it comes to insiders, those who are close to the company currently own 11.22% percent of ADVM shares. Institutions have seen ownership changes of an accumulative 0.27% over the last three months.

What You Need To Know About Share Counts

Traders and investors seem to like to know the amounts of shares both available and outstanding. When it comes to Adverum Biotechnologies, Inc., currently there are 64.45M with a float of 58.17M. These numbers mean that out of the total of 64.45M shares of ADVM currently in existence today, 58.17M are able to trade hands on the public market.

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 ADVM, the short percent of the float is 14.07%.

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 $-1.11. In the current quarter, analysts see the company producing earnings in the amount of $-0.26. Over the last 5 years, ADVM has generated revenue in the amount of $27.40% with earnings coming in at -36.80%. On a quarter over quarter basis, earnings have seen movement of 22.20% and revenue has seen movement of 0.

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