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

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Adverum Biotechnologies, Inc. (ADVM) is working its way for to the top in the market in today’s trading session. The company, one that is focused in the biotechnology industry, is presently trading at $8.72 after climbing 7.06% so far in today’s session. In terms of biotech companies, there are quite a few aspects that have the ability to lead to movement in the market. News is one of the most common reasons for movement. Here are the recent headlines centered around ADVM:

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Nov-08-19 05:07PM Edited Transcript of ADVM earnings conference call or presentation 7-Nov-19 9:30pm GMT
Nov-07-19 07:15PM Adverum Biotechnologies (ADVM) Reports Q3 Loss, Misses Revenue Estimates
04:01PM Adverum Biotechnologies Reports Recent Business Progress and Third Quarter 2019 Financial Results
Nov-04-19 08:44AM When Does Market Timing Actually Work? – November 04, 2019
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

Nonetheless, when making a decision with regard to investing, investors should take a look at much more than news, this is especially the case in the highly speculative biotech industry. Here’s what’s happing when it comes to Adverum Biotechnologies, Inc..

Recent Movement Out of ADVM

Although a gain in a single session, like the move that we’re seeing from Adverum Biotechnologies, Inc. might make some investors happy, a single session gain by itself shouldn’t be the reason for a decision to, or not to, buy a company’s stock. It is always smart to take a look at trends beyond a single trading day. When it comes to ADVM, below are the returns on investment that investors have seen:

  • Past 7 Days – Throughout the last 5 trading sessions, ADVM has produced a change in value amounting to 10.18%.
  • Monthly – The return on investment from Adverum Biotechnologies, Inc. over the past 30 days works out to 68.57%.
  • Past Quarter – Over the last three months, the company has generated a ROI that works out to -24.09%
  • Bi-Annually – Over the last 6 months, we’ve seen a performance that equates to 37.68% from the company.
  • YTD – Since the open of this year ADVM has produced a return on investment of 176.67%.
  • Full Year – Finally, over the past full year, we have seen a change amounting to 136.18% from ADVM. In this period, the stock has traded at a high price of -46.81% and a low price of 210.14%.

Ratios Of Note

Digging into a few ratios having to do with a company can provide prospective investors a look of how risky and/or potentially profitable a stock pick might be. Below are a few of the important ratios to think about when digging into ADVM.

Short Ratio – The short ratio is a tool that’s used by investors to measure the amount of short interest. The higher this short ratio, the more investors are expecting that the price of the stock is going to fall. Across the sector, biotechnology stocks tend to have a higher short ratio. However, we also tend to see quite a few short squeezes in the sector. Nonetheless, as it relates to Adverum Biotechnologies, Inc., the stock’s short ratio amounts to 4.07.

Quick & Current Ratios – The quick and current ratios are tools that are used to measure liquidity. Essentially, they measure If a company is able to pay for its debts when they come due based on current assets or quick assets. Because many biotech companies rely heavily on the continuation of support from investors, these ratios can look damning. Nonetheless, several better companies in the biotech space do have great current and quick ratios. As it relates to ADVM, the quick and current ratios total up to 9.40 and 9.40 respectively.  

Book To Share Value – The book to share value compares the the price of shares to the current book value of assets that are owned by the company. when it comes to Adverum Biotechnologies, Inc., the book to share value ratio equates to 2.55.

Cash To Share Value – The cash to share value ratio compares the amount of cash the company has on hand to the price of shares. Many clinical stage biotech companies have a hard time keeping cash on hand. So, if you’re looking into a biotech stock, this is an important ratio to consider. As it relates to ADVM, the cash to share value works out to 2.69.

How Analysts Feel About Adverum Biotechnologies, Inc.

While it’s rarely a smart idea to avoid doing your DD and blindly following the thoughts of analysts, it is a good idea to consider their opinions when validating your own before making investment decisions in the biotechnology industry. Below are the recent moves that we have 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

Is Big Money Interested In 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 own 83.30% of the company. Institutional interest has moved by -0.15% 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 0.00% over the last three months.

What You Need To Know About 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 60.21M 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%.

Earnings

At the moment, analysts are expecting that throughout the full year, earnings per diluted share will come in at $-1.13. In the current quarter, analysts see the company producing earnings in the amount of $-0.31. 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 0 and revenue has seen movement of -62.50%.

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