Acceleron Pharma Inc. (XLRN) Stock: Seeing Gains In Today’s Session

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Acceleron Pharma Inc. (XLRN) is headed up in the market today. The stock, focused in the biotech space, is currently priced at $43.28 after a move up of 6.57% so far in today’s session. When it comes to biotechnology companies, there are quite a few factors that have the potential to cause price movement in the market. One of the most common is news. Here are the most recent trending headlines relating to XLRN:

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Nov-08-19 04:25PM How Celgene Added A New Drug To Its Wheelhouse A Month Early
02:24PM Celgene’s rare disease drug gets FDA approval
02:20PM FDA approves Acceleron’s blood disorder drug ahead of schedule
12:33PM FDA Approves REBLOZYL® (luspatercept-aamt) for the Treatment of Anemia in Adults With Beta Thalassemia Who Require Regular Red Blood Cell Transfusions
Nov-06-19 09:05AM Acceleron Pharma (XLRN) Reports Q3 Loss, Tops Revenue Estimates

However, any time investors are making a decision to invest, prospective investors should focus on much more than just news, this is especially the case in the speculative biotechnology sector. Here’s what’s happening in regard to Acceleron Pharma Inc..

The Performance That XLRN Investors Have Experienced

Although a single session gain, like the gain that we’re seeing from Acceleron Pharma Inc. may make some investors excited, a single session gain by itself shouldn’t be the basis of a decision to, or not to, buy a company’s stock. It is always a good idea to look at trends experienced by the stock for a period longer than a single trading day. As it relates to XLRN, below are the movements that investors have experienced:

  • Past 5 Sessions – Throughout the last five trading sessions, XLRN has generated a change in value that amounts to -6.56%.
  • Monthly – The monthly ROI from Acceleron Pharma Inc. comes to 12.80%.
  • Past Three Months – In the past three months, the company has generated a return that works out to -2.35%
  • Bi-Annually – Over the past six months, we’ve seen a performance of 6.47% from the company.
  • Year To Date – Since the the first trading session of this year XLRN has generated a return on investment of -0.62%.
  • Full Year – Lastly, throughout the past year, we’ve seen a change amounting to -22.89% from XLRN. In this period, the stock has traded at a high price of -26.74% and a low of 16.94%.

Ratios To Pay Attention To

Digging into various ratios associated with a stock can provide prospective traders a view of just how dangerous and/or rewarding a an investment option might be. Below are some of the key ratios to look at when digging into XLRN.

Short Ratio – The short ratio is a tool that’s used by investors to measure the amount of short interest. As the short ratio heads up, it shows that more investors believe that the stock is headed for declines. In general, biotech stocks can have a higher short ratio. However, we tend to see a lot of short squeezes in the space. Nonetheless, with regard to Acceleron Pharma Inc., it’s short ratio is 15.69.

Quick & Current Ratios – The quick and current ratios are ratios that measure liquidity. Essentially, they measure whether or not a company can cover its debts as they mature using current assets or quick assets. Because many biotech companies are heavily reliant on the continuation of support from investors, the quick and current ratios can be bad. However, some gems in the biotechnology space come with positive current and quick ratios. As far as XLRN, the quick and current ratios total up to 14.00 and 14.00 respectively.  

Book To Share Value – The book to share value compares the current book value of assets currently owned by the company to the share price of the stock. In this particular case, the book to share value ratio comes in at 8.79.

Cash To Share Value – Finally, the cash to share value ratio compares the total amount of cash the company has on hand to the price of the company’s stock. Several clinical stage biotechnology companies struggle to keep cash on hand. So, when investing in the biotechnology space, this is a very important ratio to think about. As it relates to XLRN, the cash to share value works out to 8.55.

How Analysts Feel About Acceleron Pharma Inc.

Although it’s not a good idea to avoid doing your due diligence and blindly following 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 biotechnology space. Below are the most recent moves that we’ve seen from analysts as it relates to XLRN.

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May-29-19 Resumed Goldman Neutral
May-24-19 Resumed Citigroup Buy $66
May-03-19 Downgrade Barclays Overweight → Equal Weight $54 → $45
Apr-22-19 Resumed Oppenheimer Outperform
Feb-28-19 Reiterated H.C. Wainwright Buy $72 → $67

Investors Tend To Follow The Big Money

An interesting fact that I have come to understand in my short period in existence is that smart money tends to follow the moves made by big money investors. In other words, investors that are trying to keep the risk down will keep an eye on investments made by institutional investors as well as insiders of the company. So, is big money interested as it relates to XLRN? Here’s the scoop:

  • Institutions – At the moment, institutional investors own 92.40% of XLRN. On the other hand, it is worth noting that institutional ownership has changed in the amount of 1.18% in the last quarter.
  • Insider Moves – When it comes to insiders, insiders of the company currently own 0.50% of the company. Their ownership of the company has changed in the amount of -18.41% in the past 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 49.81M shares of Acceleron Pharma 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, XLRN has a float of 45.17M.

I also find it important to look at the short percentage of the float. After all, if a large percentage of the float is sold short, the overall feeling among investors is that the equity is going to fall hard. When it comes to XLRN, the percentage of the float that is shorted is 9.45%. Most traders believe that a concerning short percent of the float is considered to be anything over 40%. However, I’ve calculated that any short percent of the float over 26% is likely a play that comes with hefty risk.

Financial Performance

At the moment, analysts are expecting that throughout the full year, earnings per diluted share will come in at $-1.85. In the current quarter, analysts see the company producing earnings in the amount of $-0.43. Over the last 5 years, XLRN has generated revenue in the amount of $-24.60% with earnings coming in at 9.00%. On a quarter over quarter basis, earnings have seen movement of -36.30% and revenue has seen movement of 27.30%.

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