Omeros Corporation (OMER) Stock: A Biotech Stock That’s Falling

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Omeros Corporation (OMER) is trending down in the market in today’s trading session. The stock, focused in the biotech sector, is currently priced at $16.23 after heading down -5.36% so far in today’s session. When it comes to biotech companies, there are several aspects that have the potential to lead to price movement in the market. One of the most common is news. Here are the recent stories centered around OMER:

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Oct-29-19 09:00AM Omeros Narsoplimab Receives Positive Opinion from European Medicines Agency for Pediatric Investigation Plan Required for MAA Submission
Oct-28-19 08:45AM Omeros Corporation Initiates BLA Submission for Narsoplimab for the Treatment of HSCT-TMA
Oct-21-19 09:46AM Here’s Why You Should Hold on to Chemed (CHE) Stock Right Now
Oct-18-19 04:31AM 2 Candidates That Could Be the Next Biotech Rockets
Oct-01-19 08:30AM Product-Specific J-Code for Omeros OMIDRIA® is Now in Effect

Nonetheless, any time investors are making a decision to invest, investors should look at much more than just news, especially in the speculative biotechnology space. Here’s what’s happening with Omeros Corporation.

Recent Moves From OMER

While a move down on a single session, like the fall that we’re seeing from Omeros Corporation may cause fear in some investors, that by itself should not be the basis of a decision to, or not to, invest in a company. It’s generally a good idea to dig into trends further out than a single trading day. As it relates to OMER, here are the trends that investors have seen:

  • Past 7 Days – In the last five trading sessions, OMER has seen a change in value in the amount of 10.50%.
  • Monthly – The return from Omeros Corporation in the last month has been 5.02%.
  • Past Quarter – Throughout the last quarter, the stock has generated a return on investment of 10.57%
  • Bi-Annually – Over the last 6 months, investors have seen a performance that amounts to -10.40% from the stock.
  • YTD – Since the open of this year OMER has produced a return of 53.95%.
  • Full Year – Finally, over the last full year, we’ve seen performance amounting to 6.13% out of OMER. Throughout this period of time, the stock has traded at a high price of -22.42% and a low price of 57.57%.

Ratios To Pay Attention To

Looking at a few key ratios associated with a stock can provide traders a view of just how dangerous and/or rewarding a pick may be. Below are some of the most important ratios to look at when looking at OMER.

Short Ratio – The short ratio is a measure of short interest. As the short ratio goes higher, it shows that more investors believe that the value of the stock is headed for declines. Throughout the sector, biotech stocks tend to carry a higher short ratio. On the other hand, we tend to see a lot of short squeezes in the sector. Nonetheless, with regard to Omeros Corporation, the stock’s short ratio is 28.11.

Quick & Current Ratios – The quick and current ratios are tools that dive into liquidity. Essentially, they measure the company’s abilities to pay its debts when they mature using current assets or quick assets. In the biotech industry, many companies are heavily reliant on continued investor support, the current and quick ratios can be damning. However, some good picks in the biotechnology space do have strong current and quick ratios. In terms of OMER, the quick and current ratios work out to 1.60 and 1.60 respectively.  

Book To Share Value – The book to share value compares the the share price to the current book value of assets that are owned by the company. In this particular case, the book to share value ratio is -2.65.

Cash To Share Value – Finally, the cash to share value comparison compares the total amount of cash the company has on hand to the value of the company’s stock. Several early stage biotechnology companies have a hard time keeping cash on hand. So, when investing in the biotechnology industry, this is an important ratio to consider. In the case of OMER, the cash to share value ratio is 0.65.

How Analysts Feel About Omeros Corporation

Although it’s never a smart idea to avoid doing your due diligence and blindly following the thoughts of analysts, it is a good idea to use their opinions to validate your own when it comes to making an investment decision in the biotechnology sector. Here are the most recent moves that we have seen from analysts when it comes to OMER.

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May-06-19 Initiated Cantor Fitzgerald Overweight $26
Jul-12-18 Initiated Seaport Global Securities Buy $30
Mar-23-18 Downgrade Wedbush Outperform → Neutral $47 → $19
Mar-05-18 Downgrade Needham Buy → Hold
Nov-08-17 Initiated H.C. Wainwright Buy $30

Show Me The Big Money

An interesting fact that I’ve learned in my short time here has been that good investors tend to follow big money. So, investors that are trying to keep their investments relatively safe will keep their eyes on investments made by institutional investors as well as insiders. With that said, what does the big money picture look like when it comes to OMER? Here’s the information:

  • Institutional Investors – Currently, institutions own 54.00% of the company. Nonetheless, it is important to note that institutional ownership has changed in the amount of 0.27% in the last quarter.
  • Insider Moves – When it comes to insiders, those close to the company currently own 0.50% of Omeros Corporation. Their ownership of the company has moved -1.99% in the last 3 months.

How Many Shares Of OMER Are Available?

Investors and traders seem to have a heavy interest in the total numbers of shares both outstanding and available. As it relates to Omeros Corporation, currently there are 49.29M and there is a float of 46.37M. This means that of the total of 49.29M shares of OMER in existence today, 46.37M are available to trade hands in the public space.

It’s also important to take a look at the short percent. After all, if a large percentage of the float is shorted, the overall feeling among traders is that the equity is headed for a dive. When it comes to OMER, the percentage of the float that is shorted currently sits at 25.41%. Most traders believe that a concerning short percent of the float is considered to be anything over 40%. In my research, I have found that any short percent of the float over 26% is likely a play that comes with hefty risk.

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 $-0.87. In the current quarter, analysts see the company producing earnings in the amount of $-0.41. Over the last 5 years, OMER has generated revenue in the amount of $79.60% with earnings coming in at -13.40%. On a quarter over quarter basis, earnings have seen movement of 57.70% and revenue has seen movement of 1516.50%.

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