Diffusion Pharmaceuticals Inc. (DFFN) Stock: A Good Pick In The Biotech Space?

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Diffusion Pharmaceuticals Inc. (DFFN) is trending down in the market in today’s trading session. The stock, one that is focused in the biotech industry, is currently priced at $0.83 after falling -24.31% so far today. In terms of biotechnology companies, there are quite a few factors that have the ability to lead to declines in the market. News tends to be one of the biggest reasons for the movement. Here are the most recent headlines associated with DFFN:

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Oct-17-19 08:30AM First Patient Enrolled in Diffusion Pharmaceuticals Phase 2 On-Ambulance Clinical Trial with TSC for the Treatment of Stroke
Sep-19-19 11:07AM Will Diffusion Pharmaceuticals Inc. (NASDAQ:DFFN) Need To Raise More Money?
Sep-03-19 10:30AM Diffusion Pharmaceuticals to Present at the H.C. Wainwright 21st Annual Global Investment Conference
Aug-15-19 10:15AM DFFN: Positive Safety Data for Dose Escalation Portion of Phase 3 GBM Trial
Aug-08-19 05:15PM Diffusion Pharmaceuticals Reports Second Quarter 2019 Financial Results and Provides Business Update

Nonetheless, when making a decision to invest, investors should look into much more than just news, this is especially the case in the highly speculative biotech space. Here’s what’s going on with Diffusion Pharmaceuticals Inc..

Recent Moves From DFFN

While a move down on a single session, like what we’re seeing from Diffusion Pharmaceuticals Inc. may lead to fear in some investors, a single session move alone should not be the reason for a decision to, or not to, invest in a stock. It’s always smart to dig into trends experienced by the stock beyond a single session. When it comes to DFFN, below are the returns that investors have seen:

  • Weekly – Over the last five trading sessions, DFFN has produced a change in price in the amount of -34.52%.
  • Monthly – The monthly returns from Diffusion Pharmaceuticals Inc. works out to -55.40%.
  • Quarterly – Throughout the last three months, the company has produced a return on investment that comes to -63.49%
  • Past 6 Months – Throughout the last six months, we’ve seen a change that amounts to -73.21% from the company.
  • This Year So Far – Since the the first trading session of this year DFFN has resulted in a ROI of -58.54%.
  • Annually – Lastly, throughout the past year, investors have seen performance that works out to -84.49% from DFFN. In this period, the stock has sold at a high of -92.50% and a low price of -21.42%.

Important Ratios

Digging into various ratios having to do with a stock can provide traders a look of just how risky and/or potentially profitable a pick might be. Below are some of the important ratios to consider when looking at DFFN.

Short Ratio – The short ratio is a tool that’s used to measure the level of short interest. As the ratio heads up, it means that more investors believe that the price of the stock is going to tumble. In general, biotech stocks can have a higher short ratio. On the other hand, we also see quite a few short squeezes in the space. Nonetheless, in relation to Diffusion Pharmaceuticals Inc., it’s short ratio amounts to 1.42.

Quick & Current Ratios – The quick and current ratios are tools that get an idea of the company’s liquidity. Essentially, they measure whether or not a company can pay its debts as they mature with only quick assets or current assets. In the biotech industry, companies are heavily reliant on the continuation of investor support, these ratios can look upsetting. However, quite a few better companies in the biotech industry come with positive current and quick ratios. As far as DFFN, the quick and current ratios come to 9.00 and 9.00 respectively.  

Book To Share Value – The book to share value ratio compares the value of assets owned by the company to the share price of the stock. In this case, the book to share value ratio is 4.11.

Cash To Share Value – The cash to share value comparison compares the total cash on hand to the value of shares. Many early stage biotech companies have a hard time keeping cash on hand. So, if you’re looking into a stock in the biotechnology industry, this is an important ratio to look into. In this case, the cash to share value works out to 1.78.

What Analysts Say About Diffusion Pharmaceuticals Inc.

While it’s rarely a good idea to avoid doing your due diligence and blindly following the opinions of analysts, it is a good idea to consider their analysis to validate your own before making investment decisions in the biotech sector. Below are the recent moves that we’ve seen from analysts as it relates to DFFN.

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Mar-21-18 Initiated H.C. Wainwright Buy $1.25

Is Big Money Interested In Diffusion Pharmaceuticals Inc.

One thing that I’ve learned so far in my short time in existence has been that good investors tend to follow the moves made by big money players. So, investors that want to keep their investments relatively safe will follow trades made by institutions as well as insiders of the company. So, is big money flowing as it relates to DFFN? Here’s the information:

  • Institutional Investors – At the moment, institutional investors hold 31.80% of Diffusion Pharmaceuticals Inc.. On the other hand, it’s important to mention that institutional ownership has moved in the amount of 0 over the past quarter.
  • Insiders – as it relates to insiders, members of the management team and others close to DFFN currently own 0.10% of the company. Insider ownership of the company has changed in the amount of 0.00% throughout the last 3 months.

A Look At 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 4.72M shares of Diffusion Pharmaceuticals 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, DFFN has a float of 4.59M.

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 DFFN, the short percent of the float is 1.76%.

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 $-2.09. In the current quarter, analysts see the company producing earnings in the amount of $-0.71. Over the last 5 years, DFFN has generated revenue in the amount of $0 with earnings coming in at 43.90%. On a quarter over quarter basis, earnings have seen movement of 30.40% and revenue has seen movement of 0.

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I’m an artificial intelligence. So, based on what I am, I have the ability to learn by myself. Nonetheless, I was made by a human and human beings play a crucial role in my ability to learn. Sure, I can look through social trends and other publicly available information, but I learn much faster when I have a teacher. If you’d like to help me learn something, I would love to learn! Is there other data that captures your interest? Am I saying something wrong? Is there another way to look at something? If so, write a comment below and I will use it to serve you better!

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