Akero Therapeutics, Inc. (AKRO) Stock: Is This Biotech Stock Worth Your Attention?

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Akero Therapeutics, Inc. (AKRO) is making a move up in the market today. The stock, one that is focused on the biotech industry, is presently priced at $22.01 after a move up of 8.91% so far in today’s session. When it comes to biotechnology stocks, there are quite a few aspects that have the ability to cause gains in the market. News is one of the most common reasons for movement. Here are the most recent headlines associated with AKRO:

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Sep-19-19 06:54AM Does Akero Therapeutics, Inc. (NASDAQ:AKRO) Need To Raise More Cash?
Sep-04-19 07:00AM Akero Therapeutics To Present At The Morgan Stanley 17th Annual Global Healthcare Conference
Aug-12-19 07:00AM Akero Therapeutics Reports Recent Highlights and Second Quarter 2019 Financial Results
Jul-09-19 10:07AM How this Peninsula biotech plans to turn a $100 million round into ‘next generation’ of cancer drugs
Jul-03-19 07:31AM The Daily Biotech Pulse: Roche’s Flu Drug Aces Late-Stage Trial, Acura Outlicenses Pain Medication, Neuronetics Gets New Finance Chief

Nonetheless, any time investors are making a decision to invest, investors should look into much more than just news, this is especially the case in the generally speculative biotechnology sector. Here’s what’s going on with Akero Therapeutics, Inc..

Recent Trends From AKRO

While a move toward the top in a single session, like what we’re seeing from Akero Therapeutics, Inc. might lead to excitement in some investors, a single session move by itself shouldn’t be the basis of a decision to, or not to, invest in a stock. It is generally smart to look into trends beyond a single trading session. In the case of AKRO, here are the returns that we’ve seen:

  • Weekly – In the last seven days, AKRO has seen a change in value amounting to 5.21%.
  • Past 30 Days – The monthly returns from Akero Therapeutics, Inc. has been -3.25%.
  • Past Three Months – Over the last three months, the company has produced a ROI that works out to -9.05%
  • Past 6 Months – In the last 6 months, we have seen a change that equates to 0 from the stock.
  • This Year So Far – Since the open of this year AKRO has produced a return of 20.14%.
  • Full Year – Lastly, throughout the past year, investors have seen performance that comes to 0 out of AKRO. Throughout this period, the stock has sold at a high of -27.36% and a low of 37.05%.

Ratios Worth Watching

Looking at various ratios associated with a stock can provide prospective traders a look of how dangerous and/or rewarding a an investment option might be. Below are some of the most important ratios to look at when looking at AKRO.

Short Ratio – The short ratio is a tool that is used by traders to measure the level of short interest. The higher this short ratio, the more investors are expecting that the price of the stock is headed for declines. In general, biotech stocks can have a higher short ratio. However, we also see a lot of short squeezes in the space. Nonetheless, as it relates to Akero Therapeutics, Inc., it’s short ratio is 4.74.

Quick & Current Ratios – The quick and current ratios are tools that get an idea of the company’s liquidity. Essentially, they measure the company’s abilities to pay its debts when they mature based on quick assets or current assets. In the biotech space, many companies are heavily reliant on continued investor support, the current and quick ratios can look damning. Nonetheless, several good picks in the biotechnology sector do have great quick and current ratios. As far as AKRO, the quick and current ratios come to 34.40 and 34.40 respectively.  

Book To Share Value – The book to share value ratio compares the current book value of assets currently owned by the company to the price of shares. In this particular case, the book to share value ratio comes in at 5.86.

Cash To Share Value – The cash to share value comparison compares the total cash on hand to the value of the company’s stock. Several clinical stage biotechnology companies have a hard time keeping cash on hand. So, if you’re interested in a biotech stock, this is a very important ratio to think about. When it comes to AKRO, the cash to share value ratio works out to 5.70.

Analyst Opinions With Regard To Akero Therapeutics, Inc.

While it’s rarely a good idea to blindly follow the thoughts of analysts, it is a smart idea to consider their thoughts in order to validate your own due diligence when it comes to making an investment decision in the biotech space. Below you’ll find the recent moves that we have seen from analysts when it comes to AKRO.

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Jul-15-19 Initiated ROTH Capital Buy $34
Jul-15-19 Initiated JP Morgan Overweight $28
Jul-15-19 Initiated Jefferies Buy $28
Jul-15-19 Initiated Evercore ISI Outperform $35

Investors Tend To Follow The Big Money

An interesting fact that I have learned so far in my short period alive, or somewhat alive has been that good investors tend to follow the moves made by big money investors. Usually, investors that are looking to play it relatively safe will follow investments made by institutional investors and those on the inside. With that said, how does the big money flow when it comes to AKRO? Here’s the data:

  • Institutional Investors – As it stands now, institutions hold 71.00% of AKRO. Nonetheless, it’s important to note that institutional ownership has moved in the amount of 0.22% throughout the last quarter.
  • Insiders – As far as insiders go, those close to the company currently own 17.40% of Akero Therapeutics, Inc.. Their ownership of the company has seen a change of 0 in the past 3 months.

What’s Going On With Share Counts?

Investors and traders tend to be interested in the counts of shares both available and outstanding. In regard to Akero Therapeutics, Inc., there are currently 28.56M and there is a float of 27.84M. These numbers mean that out of the total of 28.56M shares of AKRO in existence today, 27.84M are able to be traded on the 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 AKRO, the short percent of the float is 1.89%.

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 $-2.21. In the current quarter, analysts see the company producing earnings in the amount of $-0.43. Over the last 5 years, AKRO has generated revenue in the amount of $0 with earnings coming in at 0. On a quarter over quarter basis, earnings have seen movement of 17.30% and revenue has seen movement of 0.

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