Diffusion Pharmaceuticals Inc. (DFFN) Stock: Why It’s Headed For The Bottom

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Diffusion Pharmaceuticals Inc. (DFFN) is headed down in the market in today’s trading session. The company, one that is focused in the biotech industry, is presently trading at $0.60 after tumbling -27.34% so far in today’s session. When it comes to biotechnology stocks, there are quite a few aspects that have the potential to cause price movement in the market. One of the most common is news. Here are the most recent headlines surrounding 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 with regard to investing, prospective investors should take a look at much more than news, especially in the highly speculative biotechnology sector. Here’s what’s going on with Diffusion Pharmaceuticals Inc..

Recent Movement Out of DFFN

Although a move down on a single session, like what we’re seeing from Diffusion Pharmaceuticals Inc. may make some investors fearful, a single session decline by itself shouldn’t be the reason for a decision to, or not to, buy a company’s stock. It’s generally a good idea to look at trends experienced by the stock further out than a single trading day. In the case of DFFN, here are the movements that investors have experienced:

  • Past 7 Days – In the past week, DFFN has generated a change in price amounting to -34.52%.
  • Past Month – The return from Diffusion Pharmaceuticals Inc. over the last month comes to -55.40%.
  • Past Quarter – Over the past quarter, the stock has produced a return that works out to -63.49%
  • Bi-Annually – In the last six months, we’ve seen a performance that works out to -73.21% from the stock.
  • Year To Date – Since the the last trading session of last year DFFN has produced a ROI of -58.54%.
  • Annually – Finally, in the last year, we have seen movement that comes to -84.49% from DFFN. Throughout this period of time, the stock has sold at a high price of -94.55% and a low price of -0.07%.

Key Ratios

Looking at various key ratios having to do with a company generally gives investors a view of how risky and/or potentially profitable a pick may be. Here are some of the key ratios to look at when digging into DFFN.

Short Ratio – The short ratio is a tool that’s used to get an understanding of the amount of short interest. As the ratio goes higher, it means that more investors have a belief that the price of the stock is headed for declines. Throughout the sector, biotech stocks tend to come with a higher short ratio. However, we tend to see quite a few short squeezes in the space. Nonetheless, as it relates to Diffusion Pharmaceuticals Inc., it’s short ratio clocks in at 1.19.

Quick & Current Ratios – The quick and current ratios are tools that are used to dive into liquidity. Essentially, they measure If a company is able to pay its debts when they mature with only quick assets or current assets. Because many biotech several companies are reliant on continued investor support, the current and quick ratios can look bad. Nonetheless, some gems in the biotech sector do have positive current and quick ratios. When it comes to DFFN, the quick and current ratios work out to 9.00 and 9.00 respectively.  

Book To Share Value – The book to share value ratio compares the current book value of assets owned by the company to the share price. In the case of Diffusion Pharmaceuticals Inc., that ratio equates to 4.11.

Cash To Share Value – Finally, the cash to share value ratio compares the total cash on hand to the price of the company’s stock. Several early stage biotech companies have a hard time keeping cash on hand. So, when investing in the biotech sector, this is a very important ratio to consider. In this case, the cash to share value comes to 1.78.

Analyst Opinions With Regard To Diffusion Pharmaceuticals Inc.

Although it’s not a smart idea to blindly follow the opinions of analysts, it is a smart idea to consider their thoughts when validating your own opinions before making investment decisions in the biotechnology industry. Below are the most recent moves that we’ve seen from analysts when it comes to DFFN.

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

Investors Tend To Follow The Big Money

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 DFFN, here’s what we’re seeing:

Institutions own 31.80% of the company. Institutional interest has moved by 0 over the past three months. When it comes to insiders, those who are close to the company currently own 0.10% percent of DFFN shares. Institutions have seen ownership changes of an accumulative 0.00% over the last three months.

Float Information

Investors and traders tend to be interested in the total numbers of shares both outstanding and available. In regard to Diffusion Pharmaceuticals Inc., there are currently 4.72M with a float of 4.59M. This means that out of the total of 4.72M shares of DFFN that are out there today, 4.59M are able to trade hands 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 DFFN, the short percent of the float is 1.76%.

Earnings

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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