resTORbio, Inc. (TORC) Stock: Is This Biotechnology Stock Worth Your Attention?

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resTORbio, Inc. (TORC) is trending down in the market today. The stock, focused on the biotech space, is currently priced at $8.35 after heading down -9.92% so far today. When it comes to biotechnology stocks, there are several aspects that have the potential to generate movement in the market. News is one of the most common reasons for movement. Here are the recent stories centered around TORC:

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Nov-05-19 07:00AM resTORbio Reports Third Quarter 2019 Financial Results and Corporate Update
Oct-08-19 08:00AM AMAG Pharmaceuticals Announces Settlement Agreement with Caligan Partners LP
Oct-02-19 06:00AM resTORbio Presents New Findings on RTB101 During Late-Breaking Session at IDWeek 2019
Sep-25-19 08:00AM resTORbio to Present at the 2019 Cantor Fitzgerald Global Healthcare Conference
Sep-23-19 08:09AM resTORbio to Present Findings on Investigational TORC1 Inhibitor RTB101 in Late-Breaking Session at IDWeek 2019

Nonetheless, any time investors are making a decision to invest, investors should look at much more than just news, especially in the generally speculative biotech industry. Here’s what’s happing when it comes to resTORbio, Inc..

Returns That TORC Investors Have Seen

While a move toward the top in a single session, like the fall that we’re seeing from resTORbio, Inc. might cause fear in some investors, a single session decline by itself should not be the basis of a decision to, or not to, invest in a stock. It is generally smart to look into trends just a single trading day. In the case of TORC, here are the trends that we’ve seen:

  • Weekly – Over the past week, TORC has seen a price change in the amount of 22.46%.
  • Past Month – The return from resTORbio, Inc. in the last 30 days comes to 32.43%.
  • Past Quarter – Over the last quarter, the company has generated a return on investment that works out to -0.75%
  • Bi-Annually – In the previous 6 months, investors have seen a change that works out to 16.90% from the company.
  • YTD – Since the the last trading session of last year TORC has resulted in a ROI of 7.54%.
  • Full Year – Finally, in the last full year, investors have seen movement that comes to -18.40% from TORC. Over this period of time, the stock has traded at a high of -40.57% and a low price of 34.46%.

Ratios Worth Watching

Looking at various key ratios having to do with a company generally gives investors an understanding of how dangerous and/or rewarding a stock pick may be. Here are some of the key ratios to consider when looking at TORC.

Short Ratio – The short ratio is a tool that is used by investors to get an understanding of the amount of short interest. As the short ratio heads up, it shows that more investors believe that the value of the stock is going to tumble. In general, biotechnology stocks can carry a higher short ratio. However, we tend to see quite a few short squeezes in the industry. Nonetheless, as it relates to resTORbio, Inc., the stock’s short ratio clocks in at 20.39.

Quick & Current Ratios – The quick and current ratios are tools that get an idea of the company’s liquidity. Basically, they measure the company’s abilities to pay its debts when they come due based on current assets or quick assets. Because many biotech many companies rely heavily on continued investor support, the current and quick ratios can look upsetting. Nonetheless, several better companies in the biotech space come with strong quick and current ratios. When it comes to TORC, the quick and current ratios add up to 9.90 and 9.90 respectively.  

Book To Share Value – The book to share value ratio compares the book value of assets currently owned by the company to the share price of the stock. as it relates to resTORbio, Inc., the book to share value ratio is 3.03.

Cash To Share Value – Finally, the cash to share value comparison compares the total cash on hand to the price of the company’s stock. Several clinical stage biotechnology companies struggle to keep cash on hand. So, if you’re looking into a stock in the biotech sector, this is a very important ratio to think about. In this case, the cash to share value ratio is 3.41.

How Analysts Feel About resTORbio, Inc.

Although it’s not a smart idea to avoid doing your DD and blindly following the opinions of analysts, it is a good idea to consider their analysis when validating your own opinions before making an investment decision in the biotech space. Below you’ll find the most recent moves that we’ve seen from analysts when it comes to TORC.

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Sep-09-19 Initiated Cantor Fitzgerald Overweight $23
Jun-05-19 Initiated Guggenheim Buy
Aug-01-18 Downgrade Evercore ISI Outperform → In-line

Is Big Money Interested In resTORbio, Inc.

An interesting fact that I’ve come to understand so far in my short period here has been that good investors tend to follow big money. In general, investors that are looking to play it relatively safe will keep an eye on moves made by institutions and those on the inside. With that said, what does the big money picture look like as it relates to TORC? Here’s what’s happening:

Institutions own 54.50% of the company. Institutional interest has moved by -0.04% over the past three months. When it comes to insiders, those who are close to the company currently own 38.10% percent of TORC shares. Institutions have seen ownership changes of an accumulative 0.00% over the last three months.

A Look At Share Counts

Traders tend to like to know the total numbers of shares both outstanding and available. In regard to resTORbio, Inc., currently there are 34.34M and there is a float of 20.84M. These data mean that out of the total of 34.34M shares of TORC currently in existence today, 20.84M are able to trade hands in the public realm.

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 TORC, the short percent of the float is 15.21%.

What We’ve Seen In Financial Results

At the moment, analysts are expecting that throughout the full year, earnings per diluted share will come in at $-2.35. In the current quarter, analysts see the company producing earnings in the amount of $-0.76. Over the last 5 years, TORC has generated revenue in the amount of $0 with earnings coming in at 0. On a quarter over quarter basis, earnings have seen movement of -125.20% and revenue has seen movement of 0.

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