Puma Biotechnology, Inc. (PBYI) Stock: A Strong Pick In The Biotech Sector?


Puma Biotechnology, Inc. (PBYI) is gaining in the market in today’s trading session. The stock, focused on the biotechnology sector, is currently priced at $8.88 after a move up of 18.16% so far today. As it relates to biotechnology stocks, there are a number of factors that have the potential to lead to movement in the market. News is one of the most common reasons for movement. Here are the most recent headlines surrounding PBYI:

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Nov-07-19 10:46AM Puma (PBYI) Q3 Earnings Beat, Nerlynx Sales Weak, Stock Down
02:53AM Edited Transcript of PBYI earnings conference call or presentation 6-Nov-19 9:30pm GMT
Nov-06-19 05:55PM Puma Biotech (PBYI) Reports Q3 Loss, Lags Revenue Estimates
04:07PM Puma Biotechnology Reports Third Quarter 2019 Financial Results
08:21AM The Daily Biotech Pulse: Sesen Rallies On Positive FDA Meeting, Supernus Flunks Late-Stage ADHD Trial, GW Pharma Earnings

Nonetheless, when making an investing decision, prospective investors should focus on much more than news, this is especially the case in the speculative biotech sector. Here’s what’s happening with Puma Biotechnology, Inc..

Recent Movement Out of PBYI

While a move toward the top in a single session, like what we’re seeing from Puma Biotechnology, Inc. might cause excitement in some investors, a single session gain alone should not be the reason for a decision to, or not to, buy a company’s stock. It is always smart to look into trends experienced by the stock just a single trading session. In the case of PBYI, below are the returns that we have seen:

  • Past Seven Days – In the past five trading sessions, PBYI has generated a change in value that amounts to 24.54%.
  • Past 30 Days – The monthly performance from Puma Biotechnology, Inc. works out to 22.48%.
  • Past Quarter – In the past 3 months, the company has produced a return that comes to -19.93%
  • Past 6 Months – Throughout the previous six months, investors have seen a performance that equates to -47.42% from the company.
  • Year To Date – Since the the first trading session of this year PBYI has generated a return of -56.36%.
  • Full Year – Lastly, over the past year, we’ve seen a change in the amount of -61.51% out of PBYI. Throughout this period of time, the stock has sold at a high of -79.77% and a low price of 41.85%.

Ratios To Pay Attention To

Looking at various key ratios associated with a company generally gives prospective traders an understanding of how risky and/or rewarding a stock pick may be. Below are some of the key ratios to think about when looking at PBYI.

Short Ratio – The short ratio is a tool that is used to measure the level of short interest. The higher this short ratio, the more investors have a belief that the stock is going to go down. Throughout the sector, biotech stocks tend to have 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 Puma Biotechnology, Inc., it’s short ratio amounts to 5.05.

Quick & Current Ratios – The quick and current ratios are tools that get an idea of the company’s liquidity. Essentially, they measure If a company is able to pay its debts as they mature using quick assets or current assets. Because many biotech many companies are heavily reliant on the continuation of support from investors, the current and quick ratios can be bad. Nonetheless, some gems in the biotech sector come with positive quick and current ratios. When it comes to PBYI, the quick and current ratios come to 1.70 and 1.70 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. when it comes to Puma Biotechnology, Inc., that ratio works out to 0.44.

Cash To Share Value – The cash to share value ratio compares the total amount of cash the company has on hand to the value of shares. Many early stage biotechnology companies have a hard time keeping cash on hand. So, when investing in the biotechnology sector, this is an important ratio to consider. As it relates to PBYI, the cash to share value ratio works out to 2.84.

What Analysts Say About Puma Biotechnology, Inc.

Although it’s not a smart idea to blindly follow the opinions of analysts, it is a good idea to consider their opinions to validate your own due diligence before making investment decisions in the biotech sector. Here are the most recent moves that we’ve seen from analysts when it comes to PBYI.

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Oct-08-19 Downgrade Goldman Neutral → Sell $24 → $8
May-10-19 Downgrade Citigroup Buy → Neutral $24
May-10-19 Downgrade Cantor Fitzgerald Overweight → Neutral $57 → $20
Jan-17-19 Initiated Leerink Partners Mkt Perform $21
Jan-03-19 Downgrade Guggenheim Buy → Neutral

Show Me The Big Money

An interesting fact I have come to understand so far in my brief period alive, or somewhat alive has been that smart money tends to follow big money. That is to say, investors that are looking to keep their investments relatively safe will follow investments made by institutional investors as well as insiders. So, where is the big money when it comes to PBYI? Here’s the data:

Institutions own 95.40% of the company. Institutional interest has moved by 1.31% over the past three months. When it comes to insiders, those who are close to the company currently own 11.30% percent of PBYI shares. Institutions have seen ownership changes of an accumulative -0.51% over the last three months.

What’s Going On With Share Counts?

Traders tend to have a heavy interest in the total numbers of shares both available and outstanding. In regard to Puma Biotechnology, Inc., there are currently 38.89M and there is a float of 34.52M. This means that out of the total of 38.89M shares of PBYI in existence today, 34.52M are available to be traded in the public space.

I also like to follow the short percent. Think about it, when a high percentage of the float available for trading is shorted, the overall opinion among traders is that the company is going to take a dive. In regard to PBYI, the short percentage of the float is currently 23.72%. In general, concerning short percent of the float would be anything over 40%. Through my work, I have found that anything over 26% is usually 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 $-1.42. In the current quarter, analysts see the company producing earnings in the amount of $-0.52. Over the last 5 years, PBYI has generated revenue in the amount of $0 with earnings coming in at -9.50%. On a quarter over quarter basis, earnings have seen movement of -16.30% and revenue has seen movement of -9.90%.

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