Nektar Therapeutics (NKTR) Stock: Why It’s Up

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Nektar Therapeutics (NKTR) is gaining in the market today. The company, focused on the biotechnology industry, is presently trading at $18.31 after gaining 6.92% so far in today’s session. As it relates to biotechnology stocks, there are a number of factors that have the potential to cause gains in the market. News is one of the most common reasons for movement. Here are the recent trending headlines relating to NKTR:

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Nov-01-19 09:00AM Nektar Therapeutics to Host Webcast Conference Call with Melanoma Specialist for Analysts & Investors During 2019 Society for Immunotherapy of Cancer 34th Annual Meeting
Oct-30-19 05:00PM Nektar to Announce Financial Results for the Third Quarter 2019 on Wednesday, November 6, 2019, After Close of U.S.-Based Financial Markets
10:34AM Nektar Therapeutics (NKTR) Expected to Beat Earnings Estimates: Can the Stock Move Higher?
Oct-28-19 07:46PM Is Nektar Therapeutics (NKTR) Going To Burn These Hedge Funds ?
Oct-25-19 06:00AM With Good Trial Results, Nektar Therapeutics Could "Turn on a Dime"

Nonetheless, any time investors are making a decision to invest, investors should focus on much more than just news, this is especially the case in the highly speculative biotechnology space. Here’s what’s happening with Nektar Therapeutics.

The Performance That We’ve Seen From NKTR

Although a single session gain, like what we’re seeing from Nektar Therapeutics may make some investors excited, a single session gain by itself should not be the basis of a decision to, or not to, invest in a company. It’s generally important to take a look at trends just a single trading session. In the case of NKTR, below are the returns on investment that investors have experienced:

  • Past 7 Days – Throughout the last five trading sessions, NKTR has seen a change in value that amounts to 9.77%.
  • Monthly – The monthly returns from Nektar Therapeutics has been 0.60%.
  • Quarterly – In the last 3 months, the stock has generated a ROI of -36.42%
  • Past Six Months – Throughout the previous six months, we have seen a performance of -43.99% from the stock.
  • YTD – Since the the last trading session of last year NKTR has produced a return of -44.30%.
  • Annually – Lastly, throughout the last year, we’ve seen a change that comes to -52.66% from NKTR. Throughout this period of time, the stock has sold at a high of -61.13% and a low price of 17.11%.

Ratios To Watch

Looking at various ratios having to do with a stock generally gives prospective investors an understanding of how dangerous and/or rewarding a an investment option might be. Below are a few of the key ratios to consider when looking at NKTR.

Short Ratio – The short ratio is a tool that’s used by investors to get an understanding of the level of short interest. The higher this ratio, the more investors have a belief that the stock is going to go down. Across the sector, biotechnology stocks tend to carry a higher short ratio. However, we also tend to see a lot of short squeezes in the industry. Nonetheless, when it comes to Nektar Therapeutics, it’s short ratio amounts to 8.60.

Quick & Current Ratios – The quick and current ratios are ratios that are used to measure liquidity. Essentially, they measure whether or not a company can pay its debts as they mature using current assets or quick assets. In the biotech industry, several companies are reliant on continued investor support, these ratios can look upsetting. Nonetheless, some good picks in the biotechnology sector do have strong current and quick ratios. When it comes to NKTR, the quick and current ratios add up to 14.00 and 14.10 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. as it relates to Nektar Therapeutics, the book to share value ratio is 8.92.

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 shares. Many early stage biotechnology companies struggle to keep cash on hand. So, if you’re looking into a stock in the biotech space, this is an important ratio to consider. In the case of NKTR, the cash to share value ratio is 8.65.

What Analysts Say About Nektar Therapeutics

Although it’s not a smart idea to blindly follow the thoughts of analysts, it is a smart idea to consider their analysis when validating your own due diligence before making investment decisions in the biotech sector. Here are the most recent moves that we have seen from analysts as it relates to NKTR.

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Oct-24-19 Initiated Oppenheimer Perform $18
Oct-08-19 Downgrade Goldman Buy → Sell $54 → $16
Aug-09-19 Downgrade Mizuho Buy → Neutral $79 → $21
Aug-09-19 Downgrade JP Morgan Overweight → Neutral $62 → $33
Aug-09-19 Downgrade Jefferies Buy → Hold $59 → $23

Is Big Money Interested in Nektar Therapeutics?

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 NKTR, here’s what we’re seeing:

Institutions own 96.20% of the company. Institutional interest has moved by 0.19% over the past three months. When it comes to insiders, those who are close to the company currently own 1.20% percent of NKTR shares. Institutions have seen ownership changes of an accumulative -18.81% over the last three months.

Looking At Share Counts

Investors and traders seem to like to know the counts of shares both available and outstanding. As far as Nektar Therapeutics, currently there are 175.28M with a float of 173.58M. These data mean that out of the total of 175.28M shares of NKTR that are out there today, 173.58M are able to be traded in the public realm.

I also find it important to dig into the short percentage of the float. Think about it, if a large percentage of the float available for trading is sold short, the overall opinion in the market is that the stock is headed for a deep dive. As far as NKTR, the percentage of the float that is sold short is 19.16%. Most investors would say that a concerning short percent of the float would be considered to be anything over 40%. Nonetheless, I have calculated that any short ratio over 26% is probably going to be a play that comes with hefty risk.

Earnings

At the moment, analysts are expecting that throughout the full year, earnings per diluted share will come in at $-2.48. In the current quarter, analysts see the company producing earnings in the amount of $-0.73. Over the last 5 years, NKTR has generated revenue in the amount of $51.60% with earnings coming in at 36.30%. On a quarter over quarter basis, earnings have seen movement of -111.80% and revenue has seen movement of -97.90%.

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