Dermira, Inc. (DERM) Stock: A Strong Pick In The Biotech Industry?

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Dermira, Inc. (DERM) is headed up in the market today. The company, one that is focused on the biotech industry, is presently priced at $8.23 after heading up 18.08% so far in today’s session. When it comes to biotechnology companies, there are several factors that have the ability to lead to movement in the market. News tends to be one of the biggest reasons for the movement. Here are the recent stories associated with DERM:

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Nov-08-19 04:05PM Dermira Reports Inducement Grants Under Nasdaq Listing Rule 5635(c)(4)
10:18AM Short Seller Scores Big Win as Tiny Biotech Stock Sinks 72%
10:04AM The Zacks Analyst Blog Highlights: LHC, Retrophin, Dermira and Merck & Co
08:00AM Pharma Sector Tops in October: Best ETFs & Stocks
Nov-07-19 09:17AM Trade Deal Delay Unlikely to Hit U.S. Healthcare: 4 Picks

Nonetheless, any time investors are making a decision to invest, prospective investors should look into far more than news, especially in the generally speculative biotechnology sector. Here’s what’s happening in regard to Dermira, Inc..

Trends That We’ve Seen From DERM

Although a single session gain, like what we’re seeing from Dermira, Inc. may make some investors jump for joy, a single session move alone shouldn’t be the basis of a decision to, or not to, invest in a stock. It is always important to look at trends just a single session. When it comes to DERM, here are the returns that investors have experienced:

  • Weekly – In the past 5 trading sessions, DERM has generated a price change amounting to 17.57%.
  • Past Month – The ROI from Dermira, Inc. over the past month has been 50.18%.
  • Past 3 Months – In the last three months, the stock has produced a return on investment of -2.26%
  • Past 6 Months – In the previous six months, we have seen a performance that works out to -18.92% from the company.
  • YTD – Since the the last trading session of last year DERM has produced a return of 14.46%.
  • Annually – Lastly, in the past full year, we’ve seen performance amounting to -34.16% from DERM. Throughout this period, the stock has sold at a high price of -46.83% and a low of 56.76%.

Ratios To Watch

Digging into a few key ratios associated with a company can provide prospective investors an understanding of just how dangerous and/or potentially profitable a pick might be. Below are a few of the important ratios to look at when looking at DERM.

Short Ratio – The short ratio is a measure of short interest. The higher this short ratio, the more investors have a belief that the price of the stock is going to fall. Across the sector, biotech stocks can carry a higher short ratio. On the other hand, we also see quite a few short squeezes in the sector. Nonetheless, in relation to Dermira, Inc., the stock’s short ratio is 5.24.

Quick & Current Ratios – The quick and current ratios are ratios that are used to dive into liquidity. Basically, they measure If a company is able to pay for its debts when they mature with only quick assets or current assets. In the biotech space, many companies rely on the continuation of investor support, the current and quick ratios can look bad. Nonetheless, several better companies in the biotech industry come with strong quick and current ratios. As it relates to DERM, the quick and current ratios work out to 8.10 and 8.40 respectively.  

Book To Share Value – The book to share value compares the the price of shares to the book value of assets owned by the company. when it comes to Dermira, Inc., the book to share value ratio comes in at 1.21.

Cash To Share Value – 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 early stage biotech companies struggle to keep cash on hand. So, if you’re interested in a stock in the biotechnology industry, this is a very important ratio to think about. In this case, the cash to share value works out to 6.02.

Analyst Opinions Of Dermira, Inc.

Although it’s rarely a smart idea to unknowingly follow the thoughts of analysts, it is a good idea to consider their analysis to validate your own due diligence when it comes to making an investment decision in the biotech industry. Below you’ll find the most recent moves that we have seen from analysts when it comes to DERM.

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Jun-06-19 Upgrade Mizuho Neutral → Buy $17 → $14
Mar-25-19 Reiterated Needham Buy $16 → $22
Feb-22-19 Initiated SVB Leerink Outperform $20
Feb-14-19 Initiated H.C. Wainwright Buy $13
Jan-17-19 Upgrade Raymond James Underperform → Mkt Perform

Big Money And Dermira, Inc.

One thing I have learned so far in my brief time alive, or somewhat alive is that smart investors tend to follow big money. That is to say, investors that want to keep the risk down will watch moves made by institutional investors as well as insiders. With that said, what does the big money picture look like in regard to DERM? Here’s the information:

  • Institutional Investors – Currently, institutional investors own 80.11% of Dermira, Inc.. Nonetheless, it is important to note that institutional ownership has changed in the amount of 1.09% in the last 3 months.
  • Insider Holdings – with regard to insiders, those close to the company currently hold 0.60% of Dermira, Inc.. Insider ownership of the company has seen a change of -1.82% in the last 3 months.

Interested In How Many Shares Are Available?

Investors and traders seem to like to know the counts of shares both available and outstanding. In terms of Dermira, Inc., currently there are 54.03M with a float of 53.90M. These numbers mean that out of the total of 54.03M shares of DERM currently in existence today, 53.90M are able to be traded on the market.

I also like to look at the short percentage of the float. Think about it, if a high portion of the float is shorted, the overall opinion in the market is that the company is headed for a steep decline. When it comes to DERM, the percentage of the float that is currently being sold short sits at 9.65%. Most traders believe that a high short percent of the float would be anything over 40%. However, I have found that anything over 26% is generally a risky play.

What We’ve Seen In Financial Results

What have ween seen from DERM in terms of financial results?Here’s what we’ve seen:

  • Analyst Expectations – Currently, Wall Street analysts are expecting that DERM will create EPS coming to a total of -4.64, with -1.30 to be reported in the earnings announcement for the current quarter. Although this isn’t associated with earnings, since we are chatting on the topic of Wall St. analysts, DERM is presently graded as a 1.90 considering a scale that ranges from 1 to 5 on which 1 is the worst possible Wall St. analyst grade and 5 is the best possible rating.
  • 5-Year Sales – In the last half decade, Dermira, Inc. has created a movement in sales volume that comes to a total of 0. Earnings through the period have generated movement in the amount of -39.30%.
  • Quarter Over Quarter – In terms of quarter over quarter earnings data, or Q/Q data as it is generally explained in today’s society, the company has experienced a earnings change by 41.80%. The company has also moved the needle in regard to sales that amounts to 70.30%.

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