Deciphera Pharmaceuticals, Inc. (DCPH) Stock: A Biotech Stock That’s Climbing

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Deciphera Pharmaceuticals, Inc. (DCPH) is making a move up in the market today. The company, focused on the biotech space, is presently priced at $43.85 after climbing 8.19% so far today. As it relates to biotechnology companies, there are several aspects that have the potential to cause gains in the market. One of the most common is news. Here are the recent trending headlines centered around DCPH:

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Oct-30-19 10:15AM What’s in Store for GW Pharmaceuticals (GWPH) in Q3 Earnings?
Oct-29-19 12:30PM Deciphera Pharmaceuticals Presents Updated Data from Ripretinib and DCC-3014 Programs at the AACR-NCI-EORTC International Conference on Molecular Targets and Cancer Therapeutics
07:32AM The Daily Biotech Pulse: Mirati Tastes Success With KRAS Inhibitor, Roche-Spark Deal Delayed Further, Morphosys Halts Study
Oct-28-19 06:06PM Did Hedge Funds Drop The Ball On Deciphera Pharmaceuticals, Inc. (DCPH) ?
12:30PM Deciphera Pharmaceuticals Presents Data from Rebastinib and DCC-3116 Programs at the AACR-NCI-EORTC International Conference on Molecular Targets and Cancer Therapeutics

However, any time investors are making a decision with regard to investing, prospective investors should take a look at much more than news, especially in the generally speculative biotechnology industry. Here’s what’s happing when it comes to Deciphera Pharmaceuticals, Inc..

Returns That DCPH Investors Have Seen

While a single session gain, like what we’re seeing from Deciphera Pharmaceuticals, Inc. might lead to excitement in some investors, a single session move alone shouldn’t be the reason for a decision to, or not to, invest in a stock. It’s always a good idea to take a look at trends experienced by the stock for a period longer than a single trading session. As it relates to DCPH, below are the returns that investors have experienced:

  • Weekly – In the last 7 days, DCPH has produced a price change amounting to 26.77%.
  • Monthly – The monthly performance from Deciphera Pharmaceuticals, Inc. works out to 32.72%.
  • Past 3 Months – Throughout the past three months, the company has produced a return of 95.06%
  • Past 6 Months – Throughout the past six months, we’ve seen a performance that equates to 91.32% from the stock.
  • This Year So Far – Since the close of last year DCPH has produced a return of 108.91%.
  • Annually – Lastly, in the past year, we’ve seen a change in the amount of 129.82% out of DCPH. Throughout this period of time, the stock has sold at a high of 2.00% and a low price of 133.24%.

Ratios That Are Notable

Looking at a few ratios having to do with a stock can give traders a view of just how risky and/or rewarding a stock pick might be. Below are some of the key ratios to look at when digging into DCPH.

Short Ratio – The short ratio is a measure of short interest. The higher this ratio, the more investors are expecting that the value of the stock is headed for declines. Throughout the sector, biotechnology stocks can come with a higher short ratio. However, we also tend to see a lot of short squeezes in the industry. Nonetheless, when it comes to Deciphera Pharmaceuticals, Inc., the stock’s short ratio is 3.80.

Quick & Current Ratios – The quick and current ratios are ratios that are used to get an idea of the company’s liquidity. Essentially, they measure If a company is able to cover its debts when they mature with only current assets or quick assets. Because many biotech several companies are heavily reliant on continued support from investors, the quick and current ratios can seem bad. However, some good picks in the biotechnology space come with strong current and quick ratios. As far as DCPH, the quick and current ratios add up to 7.30 and 7.30 respectively.  

Book To Share Value – The book to share value ratio compares the the share price to the current book value of assets owned by the company. In this particular case, the book to share value ratio comes in at 5.83.

Cash To Share Value – The cash to share value comparison compares the total amount of cash the company has on hand to the value of shares. Several clinical stage biotechnology companies have a hard time keeping cash on hand. So, if you’re interested in a stock in the biotechnology industry, this is a very important ratio to think about. In the case of DCPH, the cash to share value ratio works out to 4.45.

How Analysts Feel About Deciphera Pharmaceuticals, Inc.

Although it’s never a good idea to blindly follow the thoughts of analysts, it is a smart idea to use their analysis when validating your own due diligence when it comes to making an investment decision in the biotechnology space. Below are the recent moves that we’ve seen from analysts as it relates to DCPH.

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Oct-29-19 Upgrade SVB Leerink Underperform → Mkt Perform $29 → $34
Oct-22-19 Initiated JMP Securities Mkt Outperform
Oct-03-19 Initiated H.C. Wainwright Buy $60
Sep-30-19 Initiated Jefferies Buy $47
Jul-18-19 Initiated Deutsche Bank Buy $42

Smart Money Follows Big Money

One thing 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. Usually, investors that are trying to play it relatively safe will keep their eyes on trades made by institutions as well as those on the inside. With that said, is big money interested as it relates to DCPH? Here’s what’s happening:

  • Institutional Investors – As it stands now, institutions own 50.70% of the company. However, it’s important to consider that institutional ownership has changed in the amount of 7.93% throughout the past 3 months.
  • Insider Moves – with regard to insiders, those close to the company currently own 0.20% of Deciphera Pharmaceuticals, Inc.. Insider ownership of the company has seen a change of 0 throughout the last quarter.

Looking 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 50.65M shares of Deciphera 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, DCPH has a float of 33.87M.

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 DCPH, the short percent of the float is 9.10%.

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 $-4.71. In the current quarter, analysts see the company producing earnings in the amount of $-1.18. Over the last 5 years, DCPH 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 13.10% and revenue has seen movement of 0.

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