Exact Sciences Corporation (EXAS) Stock: Why It’s Headed Down

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Exact Sciences Corporation (EXAS) is falling in the market in today’s trading session. The stock, one that is focused in the biotechnology sector, is presently trading at $84.28 after tumbling -6.99% so far in today’s session. When it comes to biotechnology companies, there are a number of factors 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 headlines relating to EXAS:

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Oct-30-19 11:56AM Edited Transcript of EXAS earnings conference call or presentation 29-Oct-19 9:00pm GMT
07:01AM The Daily Biotech Pulse: Novartis Program Placed On Partial Clinical Hold, Adcom Snub For Amag, Amgen Earnings
Oct-29-19 06:25PM Exact Sciences (EXAS) Reports Q3 Loss, Tops Revenue Estimates
05:57PM Genomic Health’s longtime leader is leaving after $3 billion merger
05:36PM Exact Sciences beats Wall Street expectations with $218M in sales for 3Q

Nonetheless, any time investors are making a decision with regard to investing, prospective investors should look into much more than just news, especially in the speculative biotech industry. Here’s what’s happening with Exact Sciences Corporation.

What We’ve Seen From EXAS

While a single session decline, like the fall that we’re seeing from Exact Sciences Corporation may lead to fear in some investors, that by itself shouldn’t be the basis of a decision to, or not to, buy a company’s stock. It is generally important to take a look at trends experienced by the stock beyond a single trading session. In the case of EXAS, here are the trends that we’ve seen:

  • Past Seven Days – Throughout the past five trading sessions, EXAS has seen a change in price that amounts to 1.98%.
  • Past Month – The performance from Exact Sciences Corporation throughout the last 30 days comes to 0.27%.
  • Past Quarter – Over the past quarter, the company has generated a return on investment that works out to -21.28%
  • Past Six Months – In the previous 6 months, investors have seen a performance that amounts to -6.80% from the stock.
  • This Year So Far – Since the the first trading session of this year EXAS has generated a return of 43.60%.
  • Annually – Finally, throughout the past year, investors have seen performance that comes to 39.98% out of EXAS. Throughout this period of time, the stock has sold at a high of -32.03% and a low price of 58.84%.

Ratios Worth Paying Attention To

Looking at various key ratios associated with a stock can provide investors a view of just how dangerous and/or rewarding a an investment option may be. Below are some of the key ratios to consider when digging into EXAS.

Short Ratio – The short ratio is a tool that is used by investors to get an understanding of the level of short interest. As the short ratio goes higher, it shows that more investors have a belief that the price of the stock is going to tumble. Throughout the sector, biotech stocks can have a higher short ratio. On the other hand, we also see quite a few short squeezes in the industry. Nonetheless, with regard to Exact Sciences Corporation, it’s short ratio clocks in at 7.64.

Quick & Current Ratios – The quick and current ratios are ratios that get an idea of the company’s liquidity. Basically, they measure If a company is able to pay its debts when they mature using quick assets or current assets. In the biotech industry, several companies are heavily reliant on the continuation of investor support, these ratios can seem bad. However, quite a few gems in the biotech industry do have positive current and quick ratios. As far as EXAS, the quick and current ratios come to 2.70 and 2.80 respectively.  

Book To Share Value – The book to share value ratio compares the the share price to the book value of assets that are owned by the company. In this particular case, that ratio comes in at 5.93.

Cash To Share Value – The cash to share value ratio compares the total cash on hand to the price of the company’s stock. Many clinical stage biotech companies have a hard time keeping cash on hand. So, if you’re looking into a biotech stock, this is a very important ratio to look into. In this case, the cash to share value comes to 9.57.

Analyst Opinions With Regard To Exact Sciences Corporation

Although it’s rarely a good idea to unknowingly follow the thoughts of analysts, it is a smart idea to consider their thoughts in order to validate your own before making an investment decision in the biotech sector. Below are the recent moves that we’ve seen from analysts as it relates to EXAS.

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Oct-17-19 Reiterated BofA/Merrill Buy $130 → $135
Oct-01-19 Resumed Craig Hallum Buy $127
Sep-26-19 Initiated Oppenheimer Outperform $130
Feb-26-19 Upgrade Goldman Neutral → Buy $85 → $120
Oct-09-18 Initiated UBS Buy

Moves From Big Money Players

An interesting fact I have come to understand in my short period in existence is that smart investors tend to follow big money investors. In general, investors that are looking to play it relatively safe will watch trades made by institutional investors as well as insiders. So, how does the big money flow when it comes to EXAS? Here’s what’s going on:

  • Institutions – At the moment, institutional investors own 88.30% of EXAS. However, it is important to consider that the ownership held by institutions has changed in the amount of -0.75% in the past quarter.
  • Investors On The Inside – as it relates to insiders, those close to the company currently hold 0.20% of the company. Insider ownership of the company has changed in the amount of -22.58% over the past 3 months.

Interested In How Many Shares Are Available?

Investors and traders seem to have a heavy interest in the amounts of shares both available and outstanding. As it relates to Exact Sciences Corporation, currently there are 129.48M with a float of 127.75M. These numbers mean that out of the total of 129.48M shares of EXAS in existence today, 127.75M are available to be traded in the public realm.

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 EXAS, the short percent of the float is 10.58%.

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 $-1.00. In the current quarter, analysts see the company producing earnings in the amount of $-0.41. Over the last 5 years, EXAS has generated revenue in the amount of $155.90% with earnings coming in at -15.80%. On a quarter over quarter basis, earnings have seen movement of 0.20% and revenue has seen movement of 94.30%.

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