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

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Adverum Biotechnologies, Inc. (ADVM) is gaining in the market today. The company, one that is focused on the biotech industry, is presently trading at $7.91 after heading up 8.80% so far in today’s session. As it relates to biotechnology stocks, there are several aspects that have the ability to cause gains in the market. News tends to be one of the biggest reasons for the movement. Here are the recent trending headlines centered around 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, investors should take a look at far more than just news, this is especially the case in the speculative biotechnology sector. Here’s what’s happening in regard to Adverum Biotechnologies, Inc..

The Performance That We’ve Seen From ADVM

While a move up on a single session, like the gain that we’re seeing from Adverum Biotechnologies, Inc. might lead to excitement in some investors, a single session gain by itself should not be the basis of a decision to, or not to, buy a company’s stock. It’s always important to dig into trends beyond a single session. In the case of ADVM, below are the movements that investors have experienced:

  • Weekly – Over the last five trading sessions, ADVM has seen a change in price in the amount of 5.47%.
  • Monthly – The performance from Adverum Biotechnologies, Inc. in the last month has been 42.78%.
  • Past Quarter – In the past three months, the company has produced a return on investment that works out to -29.56%
  • Past 6 Months – Over the previous six months, we have seen a performance that equates to 17.88% from the company.
  • Year To Date – Since the close of last year ADVM has resulted in a ROI of 151.11%.
  • Annually – Finally, in the past year, we’ve seen a change that comes to 88.33% out of ADVM. Throughout this period of time, the stock has sold at a high of -51.72% and a low price of 201.91%.

Ratios To Watch

Digging into a few key ratios having to do with a stock generally gives prospective traders a look of just how dangerous and/or rewarding a stock pick may be. Here are a few of the important ratios to think about when looking at ADVM.

Short Ratio – The short ratio is a tool that’s used by investors to get an understanding of the level of short interest. As the ratio goes higher, it means that more investors believe that the stock is headed for declines. Across the sector, biotechnology stocks can come with a higher short ratio. On the other hand, we also tend to see a lot of short squeezes in the space. Nonetheless, in relation to Adverum Biotechnologies, Inc., the stock’s short ratio is 4.04.

Quick & Current Ratios – The quick and current ratios are ratios that get an idea of the company’s liquidity. Basically, they measure If a company is able to pay for its debts when they mature based on quick assets or current assets. In the biotech space, many companies are reliant on continued support from investors, the current and quick ratios can look damning. However, some good picks in the biotechnology sector do have good quick and current ratios. As it relates to 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 book value of assets currently owned by the company to the share price. when it comes to Adverum Biotechnologies, Inc., that ratio equates to 2.79.

Cash To Share Value – Finally, the cash to share value comparison 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 sector, this is a very important ratio to consider. In this case, the cash to share value ratio works out to 3.00.

Analyst Opinions Of Adverum Biotechnologies, Inc.

Although it’s never a smart idea to blindly follow the opinions of analysts, it is a good idea to consider their analysis when validating your own due diligence when it comes to making an investment decision in the biotechnology space. Here are the recent moves that we’ve seen from analysts with regard 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

Smart Money Follows 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 -0.41% 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.

What You Need To Know About Share Counts

Traders tend to have a heavy interest in the counts of shares both outstanding and available. In terms of Adverum Biotechnologies, Inc., there are currently 59.24M with a float of 58.17M. This means that out of the total of 59.24M shares of ADVM currently in existence today, 58.17M are able to be traded on the market.

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%.

Earnings

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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