Adverum Biotechnologies, Inc. (ADVM) Stock: Here’s Why It’s Headed For The Top

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Adverum Biotechnologies, Inc. (ADVM) is headed up in the market today. The company, one that is focused in the biotech industry, is presently priced at $7.91 after heading up 8.80% so far in today’s session. In terms of biotechnology companies, there are several factors that have the ability to cause price movement in the market. News tends to be one of the biggest reasons for the movement. Here are the recent trending 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, when making an investing decision, prospective investors should look into much more than news, especially in the generally speculative biotechnology sector. Here’s what’s going on with Adverum Biotechnologies, Inc..

Recent Movement Out of ADVM

Although a single session gain, like the move that we’re seeing from Adverum Biotechnologies, Inc. may lead to excitement in some investors, a single session move alone should not be the basis of a decision to, or not to, invest in a stock. It is always a good idea to dig into trends just a single trading day. When it comes to ADVM, here are the returns on investment that investors have experienced:

  • Weekly – Over the past week, ADVM has seen a price change in the amount of 5.47%.
  • Past Month – The monthly performance from Adverum Biotechnologies, Inc. has been 42.78%.
  • Quarterly – Over the last 3 months, the company has generated a return on investment that works out to -29.56%
  • Bi-Annually – Throughout the past 6 months, we’ve seen a performance that amounts to 17.88% from the company.
  • YTD – Since the the first trading session of this year ADVM has resulted in a return on investment of 151.11%.
  • Annually – Lastly, over the last full year, we’ve seen a change that works out to 88.33% from ADVM. Throughout this period of time, the stock has sold at a high price of -51.72% and a low price of 201.91%.

Ratios Worth Watching

Looking at a few ratios associated with a company can provide prospective investors an understanding of how risky and/or rewarding a an investment option may be. Below are a few of the most important ratios to think about when looking at ADVM.

Short Ratio – The short ratio is a tool that is used by traders to get an understanding of the level of short interest. The higher this ratio, the more investors are expecting that the price of the stock is going to go down. Across the sector, biotech stocks tend to have a higher short ratio. However, we tend to see a lot of short squeezes in the space. Nonetheless, with regard to Adverum Biotechnologies, Inc., it’s short ratio amounts to 4.04.

Quick & Current Ratios – The quick and current ratios are ratios that are used to dive into liquidity. Essentially, they measure the company’s abilities to pay its debts when they mature based on current assets or quick assets. In the biotech sector, many companies rely heavily on the continuation of support from investors, the quick and current ratios can look bad. However, quite a few gems in the biotechnology sector come with great quick and current ratios. As it relates to ADVM, the quick and current ratios add up to 17.80 and 17.80 respectively.  

Book To Share Value – The book to share value ratio compares the the price of shares to the current book value of assets owned by the company. as it relates to Adverum Biotechnologies, Inc., the book to share value ratio comes in at 2.79.

Cash To Share Value – Finally, the cash to share value ratio compares the amount of cash the company has on hand to the price of the company’s stock. Several early stage biotech companies have a hard time keeping cash on hand. So, when investing in the biotech space, this is a very important ratio to look into. As it relates to ADVM, the cash to share value is 2.76.

How Analysts Feel About Adverum Biotechnologies, Inc.

While it’s not a good idea to avoid doing your due diligence and blindly following the opinions of analysts, it is a smart idea to use their opinions when validating your own opinions before making an investment decision in the biotechnology space. Here are the most recent moves that we’ve seen from analysts as it relates 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

Investors Tend To Follow The Big Money

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 own 83.10% of the company. Institutional interest has moved by -0.42% over the past three months. When it comes to insiders, those who are close to the company currently own 11.22% percent of ADVM shares. Institutions have seen ownership changes of an accumulative 0.28% over the last three months.

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 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.

It’s also important to pay attention to the short float. Think about it, if a large percentage of the float is sold short, the overall feeling among investors is that the stock is going to fall hard. With regard to ADVM, the percentage of the float that is shorted currently sits at 14.07%. Most traders believe that a high short percent of the float would be any percentage over 40%. Through my work, I’ve found that any short ratio over 26% is likely a risky play.

What We’ve Seen In earnings results

What have ween seen from ADVM in terms of financial results?Here’s the information:

  • Analyst Expectations – At the moment, Wall Street analysts expect that the company will report EPS of -1.11, with -0.26 being announced in the report for the current quarter. Although this isn’t associated with earnings, because we are talking on the topic of Wall St. analysts, the stock is currently graded as a 2.60 considering a scale that ranges from 1 to 5 where 1 is the worst average Wall St. analyst rating and 5 is the best possible.
  • 5-Year Sales – In the past half decade, Adverum Biotechnologies, Inc. has generated a movement in revenue that works out to 27.40%. Earnings through the period have seen a change of -36.80%.
  • Q/Q – In terms of quarter over quarter earnings performance, or Q/Q data as it is generally explained in today’s society, Adverum Biotechnologies, Inc. has seen a change in earnings that comes to a total of 22.20%. Adverum Biotechnologies, Inc. has also experienced movement when it comes to sales volume that amounts to 0.

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