Stemline Therapeutics, Inc. (STML) Stock: Here’s Why It’s Falling


Stemline Therapeutics, Inc. (STML) is working its way for to the bottom in the market today. The company, focused in the biotechnology space, is presently trading at $9.25 after tumbling -11.40% so far in today’s session. When it comes to biotechnology companies, there are several factors that have the ability to generate movement in the market. One of the most common is news. Here are the most recent headlines associated with STML:

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Nov-08-19 08:14AM The Daily Biotech Pulse: Therapix Calls Off Merger, Alimera’s Reverse Split, 2 Biotechs To Debut
Nov-07-19 04:57PM Stemline Therapeutics Reports Third Quarter 2019 Financial Results
Nov-06-19 09:15AM Stemline Therapeutics Announces Three ELZONRIS Presentations, Including an Oral Presentation in Myelofibrosis, at Upcoming ASH Meeting
Nov-05-19 04:22PM Stemline Therapeutics to Host Conference Call on Third Quarter 2019 Financial Results on November 8, 2019
Oct-30-19 11:20AM Stemline Therapeutics Inc (STML) Is Burning These Hedge Funds

Nonetheless, any time investors are making a decision with regard to investing, investors should look at far more than news, especially in the speculative biotech space. Here’s what’s going on with Stemline Therapeutics, Inc..

Recent Movement From STML

Although a move toward the top in a single session, like what we’re seeing from Stemline Therapeutics, Inc. may lead to fear in some investors, a single session decline by itself should not be the reason for a decision to, or not to, invest in a stock. It is always a good idea to take a look at trends experienced by the stock further out than a single trading day. In the case of STML, here are the returns on investment that we have seen:

  • Past 5 Trading Sessions – In the last 5 trading sessions, STML has produced a price change in the amount of -13.55%.
  • Past 30 Days – The monthly ROI from Stemline Therapeutics, Inc. has been 7.56%.
  • Quarterly – Throughout the past quarter, the stock has produced a return of -40.51%
  • Bi-Annually – In the past 6 months, we have seen a change that equates to -35.92% from the company.
  • YTD – Since the open of this year STML has produced a ROI of -2.63%.
  • Full Year – Finally, throughout the past full year, we’ve seen a change amounting to -38.09% from STML. Throughout this period of time, the stock has sold at a high price of -49.23% and a low of 18.29%.

Ratios Worth Watching

Digging into various ratios having to do with a company can provide investors a view of how dangerous and/or potentially profitable a pick might be. Here are some of the most important ratios to look at when looking at STML.

Short Ratio – The short ratio is a measure of short interest. As the ratio goes higher, it shows that more investors are expecting that the value of the stock is headed for declines. Across the sector, biotechnology stocks can come with a higher short ratio. However, we tend to see quite a few short squeezes in the industry. Nonetheless, in relation to Stemline Therapeutics, Inc., it’s short ratio amounts to 8.94.

Quick & Current Ratios – The quick and current ratios are tools that are used to get an idea of the company’s liquidity. Essentially, they measure the company’s abilities to cover its debts when they come due using quick assets or current assets. Because many biotech many companies are heavily reliant on the continuation of investor support, the current and quick ratios can seem upsetting. However, some good picks in the biotech space do have good quick and current ratios. When it comes to STML, the quick and current ratios come to 4.60 and 4.70 respectively.  

Book To Share Value – The book to share value compares the the share price to the book value of assets owned by the company. In this case, the book to share value ratio works out to 2.51.

Cash To Share Value – Finally, the cash to share value comparison compares the total amount of cash the company has on hand to the price of the company’s stock. Many clinical stage biotech companies have a hard time keeping cash on hand. So, when investing in the biotechnology sector, this is a very important ratio to look into. In this case, the cash to share value ratio is 1.89.

Analyst Opinions Of Stemline Therapeutics, Inc.

While it’s not a smart idea to avoid doing your due diligence and blindly following the opinions of analysts, it is a good idea to use their opinions to validate your own when it comes to making an investment decision in the biotech industry. Here are the most recent moves that we’ve seen from analysts when it comes to STML.

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Aug-02-19 Upgrade Wedbush Neutral → Outperform
May-13-19 Downgrade Wedbush Outperform → Neutral $18
Dec-11-18 Initiated JP Morgan Overweight $17
Nov-26-18 Initiated Piper Jaffray Overweight $20
Jun-12-18 Initiated ROTH Capital Buy $30

What Institutions And Insiders Think Of Stemline Therapeutics, Inc.

An interesting fact I have come to understand in my short time as an intelligence is that smart money tends to follow big money players. That is to say, investors that are looking to keep their investments relatively safe will pay close attention to moves made by institutions as well as insiders. With that said, what does the big money picture look like when it comes to STML? Here’s the scoop:

  • Institutions – As it stands now, institutions own 77.30% of STML. On the other hand, it’s worth mentioning that the ownership held by institutions has changed in the amount of 1.79% in the past 3 months.
  • Investors On The Inside – with regard to insiders, those close to the company currently hold 7.30% of the company. Their ownership of the company has changed in the amount of -3.92% over the past 3 months.

A Look At 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 55.17M shares of Stemline Therapeutics, 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, STML has a float of 44.30M.

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 STML, the short percent of the float is 13.70%.

Financial Results And Expectations

At the moment, analysts are expecting that throughout the full year, earnings per diluted share will come in at $-0.34. In the current quarter, analysts see the company producing earnings in the amount of $-0.43. Over the last 5 years, STML has generated revenue in the amount of $47.80% with earnings coming in at -5.00%. On a quarter over quarter basis, earnings have seen movement of 36.60% and revenue has seen movement of 2501.30%.

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