Trevi Therapeutics, Inc. (TRVI) Stock: Is This Biotech Stock Worth Your Investment?

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Trevi Therapeutics, Inc. (TRVI) is headed down in the market today. The stock, one that is focused in the biotechnology space, is presently trading at $3.09 after falling -7.49% so far today. In terms of biotechnology companies, there are a number of aspects that have the ability to lead to declines in the market. One of the most common is news. Here are the most recent stories associated with TRVI:

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Sep-05-19 04:05PM Trevi Therapeutics to Participate in Panel Discussion at BTIG Pain / Pruritus Management Forum
Aug-12-19 04:05PM Trevi Therapeutics Announces Second Quarter 2019 Financial Results and Recent Business Developments
Aug-09-19 11:40AM Have Insiders Been Buying Trevi Therapeutics, Inc. (NASDAQ:TRVI) Shares?
Jun-13-19 04:09PM Trevi Therapeutics Announces First Quarter 2019 Financial Results and Recent Business Developments
Jun-03-19 02:35PM BMO Sees Compelling Valuation For Trevi Therapeutics At Current Levels

However, when making a decision to invest, prospective investors should take a look at much more than news, this is especially the case in the speculative biotech industry. Here’s what’s going on with Trevi Therapeutics, Inc..

The Performance That We’ve Seen From TRVI

While a move down on a single session, like the fall that we’re seeing from Trevi Therapeutics, Inc. may cause fear in some investors, a single session decline by itself shouldn’t be the basis of a decision to, or not to, invest in a stock. It is generally important to dig into trends beyond a single trading day. When it comes to TRVI, here are the trends that we have seen:

  • Past 5 Trading Sessions – In the last week, TRVI has produced a price change amounting to -16.49%.
  • Past Month – The return on investment from Trevi Therapeutics, Inc. over the past 30 days comes to -31.33%.
  • Past 3 Months – In the past three months, the stock has produced a return of -43.82%
  • Past Six Months – In the past 6 months, we have seen a change that amounts to 0 from the company.
  • Year To Date – Since the the last trading session of last year TRVI has generated a return of -60.84%.
  • Annually – Lastly, in the last year, we have seen performance in the amount of 0 from TRVI. Over this period, the stock has traded at a high of -70.90% and a low of -5.21%.

Key Ratios

Looking at various ratios having to do with a company can provide prospective investors a look of how dangerous and/or rewarding a an investment option might be. Here are some of the important ratios to look at when digging into TRVI.

Short Ratio – The short ratio is a tool that’s used to measure the amount of short interest. As the short ratio goes higher, it shows that more investors believe that the stock is headed for declines. In general, biotech stocks can carry a higher short ratio. On the other hand, we also see a lot of short squeezes in the industry. Nonetheless, in relation to Trevi Therapeutics, Inc., the stock’s short ratio is 1.53.

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 as they mature using quick assets or current assets. Because many biotech many companies are heavily reliant on the continuation of investor support, these ratios can be bad. Nonetheless, quite a few good picks in the biotechnology space come with good quick and current ratios. As it relates to TRVI, the quick and current ratios total up to 10.50 and 10.50 respectively.  

Book To Share Value – The book to share value ratio compares the the share price to the book value of assets owned by the company. In this particular case, that ratio comes in at 3.80.

Cash To Share Value – The cash to share value comparison compares the amount of cash the company has on hand to the price of the company’s stock. Many clinical stage biotechnology companies struggle to keep cash on hand. So, if you’re looking into a stock in the biotechnology space, this is an important ratio to look into. As it relates to TRVI, the cash to share value works out to 4.00.

What Analysts Say About Trevi Therapeutics, Inc.

While it’s never a smart idea to unknowingly follow the thoughts of analysts, it is a good idea to consider their thoughts to validate your own opinions when it comes to making an investment decision in the biotechnology space. Here are the recent moves that we have seen from analysts as it relates to TRVI.

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Jun-03-19 Initiated SVB Leerink Outperform $14
Jun-03-19 Initiated Stifel Buy $20
Jun-03-19 Initiated Needham Buy $18
Jun-03-19 Initiated BMO Capital Markets Outperform $15

Is Big Money Interested in Trevi Therapeutics, Inc.?

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 TRVI, here’s what we’re seeing:

  • Institutional Investors – As it stands now, institutional investors own 86.60% of TRVI. However, it is important to consider that institutional ownership has seen a move of 0.08% over the last 3 months.
  • Investors On The Inside – As far as insiders go, those close to the company currently hold 13.90% of the company. Their ownership of the company has changed in the amount of 0 over the past quarter.

How Many Shares Of TRVI Are Available?

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 17.85M shares of Trevi Therapeutics, 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, TRVI has a float of 16.50M.

It’s also important to pay attention to the short percent. After all, if a high portion of the float available for trading is sold short, the overall opinion in the market is that the stock is going to fall hard. When it comes to TRVI, the short percentage of the float totals up to 0.12%. Most investors would say that a concerning short percent of the float is anything over 40%. However, I’ve found that any short ratio over 26% is likely a play that comes with hefty risk.

What We’ve Seen In earnings results

What have ween seen from TRVI in terms of financial results?Here is the data:

  • Analyst Expectations – As it stands, Wall St. analysts expect that TRVI will come up with earnings per diluted share of -2.20, with -0.48 to be reported in the earnings report for the current quarter. Although this information is not associated with earnings, because we are talking on the topic of analysts, the stock is currently graded as a 1.50 on a scale from 1 to 5 on which 1 is the poorest Wall St. analyst grade and 5 is the best.
  • 5-Year Sales – Throughout the past half decade, Trevi Therapeutics, Inc. has created a movement in revenue that works out to 0. EPS over the period have generated movement in the amount of 0.
  • Quarter Over Quarter – In terms of quarter over quarter earnings data, or Q/Q data as it is generally represented in the world of humans, Trevi Therapeutics, Inc. has seen a earnings change by 3.30%. TRVI has also seen movement with regard to sales volume that comes to a total of 0.

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