Adverum Biotechnologies, Inc. (ADVM) Stock: Why It’s Gaining

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Adverum Biotechnologies, Inc. (ADVM) is making a move up in the market in today’s trading session. The company, focused on the biotechnology sector, is currently priced at $7.91 after climbing 8.80% so far in today’s session. When it comes to biotech stocks, there are quite a few aspects that have the ability to lead to gains in the market. One of the most common is news. Here are the most recent headlines associated with ADVM:

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Oct-31-19 04:01PM Adverum Biotechnologies to Host a Conference Call and Webcast to Report Third Quarter 2019 Financial Results and Provide Corporate Updates
Oct-30-19 04:01PM Adverum Biotechnologies Expands Leadership Team with the Appointment of Peter Soparkar as Chief Legal Officer
Oct-29-19 12:37PM Adverum Biotechnologies, Inc. (ADVM): Hedge Funds Getting Back In?
Oct-24-19 08:00AM Adverum Biotechnologies Doses First Patient in Third Cohort of OPTIC Phase 1 Clinical Trial of ADVM-022 Intravitreal Gene Therapy for Wet AMD
Oct-23-19 08:00AM Adverum Biotechnologies Announces Data Presentations at the European Society of Gene and Cell Therapy (ESGCT) 2019 Congress

Nonetheless, any time investors are making a decision to invest, prospective investors should look into far more than just news, especially in the speculative biotech space. Here’s what’s happening with Adverum Biotechnologies, Inc..

Recent Movement From ADVM

Although a move toward the top in a single session, like what we’re seeing from Adverum Biotechnologies, Inc. may lead to excitement in some investors, a single session move alone should not be the reason for a decision to, or not to, buy a company’s stock. It’s generally smart to dig into trends beyond a single trading session. In the case of ADVM, below are the trends that investors have experienced:

  • Past Seven Days – Throughout the last seven days, ADVM has produced a change in price that amounts to 5.52%.
  • Past Month – The monthly performance from Adverum Biotechnologies, Inc. comes to 29.24%.
  • Past 3 Months – In the last 3 months, the stock has produced a return on investment that works out to -34.86%
  • Past Six Months – In the previous six months, investors have seen a change that works out to 9.65% from the company.
  • This Year So Far – Since the close of last year ADVM has generated a ROI of 130.79%.
  • Annually – Finally, throughout the past full year, investors have seen a change that works out to 79.51% out of ADVM. In this period, the stock has sold at a high of -51.72% and a low price of 201.91%.

Ratios That Are Notable

Digging into a few ratios associated with a company can provide prospective traders a view of how risky and/or potentially profitable a pick might be. Below are some of the most important ratios to look at when looking at ADVM.

Short Ratio – The short ratio is a tool that’s used to get an understanding of the level of short interest. The higher this short ratio, the more investors have a belief that the value of the stock is going to fall. In general, biotech stocks can carry a higher short ratio. However, we also tend to see a lot of short squeezes in the industry. Nonetheless, in regard to Adverum Biotechnologies, Inc., the stock’s short ratio comes to 4.04.

Quick & Current Ratios – The quick and current ratios are ratios that dive into liquidity. Basically, they measure the company’s abilities to pay for its debts when they mature using quick assets or current assets. Because many biotech companies rely on the continuation of support from investors, these ratios can seem upsetting. However, several good picks in the biotechnology industry do have strong current and quick ratios. As far as ADVM, the quick and current ratios work out to 17.80 and 17.80 respectively.  

Book To Share Value – The book to share value compares the the price of shares to the current book value of assets owned by the company. In this case, the book to share value ratio comes in at 2.79.

Cash To Share Value – Finally, the cash to share value comparison compares the total amount of cash the company has 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 interested in a biotechnology stock, this is a very important ratio to consider. When it comes to ADVM, the cash to share value is 2.76.

How Analysts Feel About Adverum Biotechnologies, Inc.

Although it’s rarely a smart idea to blindly follow the thoughts of analysts, it is a smart idea to consider their opinions to validate your own thoughts when it comes to making investment decisions in the biotechnology space. Below are the most recent moves that we’ve seen from analysts when it comes to ADVM.

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Oct-15-19 Reiterated Chardan Capital Markets Neutral $6 → $10
Sep-13-19 Reiterated Chardan Capital Markets Neutral $10 → $6
Jun-14-19 Resumed Raymond James Mkt Perform
Nov-02-18 Downgrade SunTrust Buy → Hold
Nov-02-18 Downgrade Raymond James Outperform → Mkt Perform

What Institutions And Insiders Think Of Adverum Biotechnologies, 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 ADVM, here’s what we’re seeing:

  • Institutions – At the moment, institutions own 83.10% of Adverum Biotechnologies, Inc.. On the other hand, it’s worth considering that the ownership held by institutions has seen a move of -0.42% over the past 3 months.
  • Investors On The Inside – As far as insiders go, those close to the company currently hold 11.22% of the company. Their ownership of the company has changed by 0.28% in the last 3 months.

Interested In How Many Shares 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 64.45M shares of Adverum Biotechnologies, 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, ADVM has a float of 58.17M.

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 ADVM, the short percent of the float is 14.07%.

Financial Results And Expectations

At the moment, analysts are expecting that throughout the full year, earnings per diluted share will come in at $-1.11. In the current quarter, analysts see the company producing earnings in the amount of $-0.26. Over the last 5 years, ADVM has generated revenue in the amount of $27.40% with earnings coming in at -36.80%. On a quarter over quarter basis, earnings have seen movement of 22.20% and revenue has seen movement of 0.

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