Avid Bioservices Inc. (NASDAQ: CDMO) stock fell -2.72% on Wednesday to $14.33 against a previous-day closing price of $14.73. With 0.42 million shares changed hands, the volume of the stock remained lighter than its average volume of 0.63 million shares. During the session, the Biotechnology company that operates in wider Healthcare sector, reached to the highest price of $14.68 whereas the lowest price it dropped to was $14.22. The 52-week range on CDMO shows that it touched its highest point at $32.51 and its lowest point at $11.30 during that stretch. It currently has a 1-year price target of $26.00. Beta for the stock currently stands at 1.79.
Price Performance and Earnings:
Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of CDMO was down-trending over the past week, with a drop of -1.92%, but this was down by -14.29% over a month. Three-month performance dropped to -24.70% while six-month performance rose 13.91%. The stock lost -55.22% in the past year, while it has lost -50.89% so far this year. A look at the trailing 12-month EPS for CDMO yields 1.39 with Next year EPS estimates of 0.24. For the next quarter, that number is -0.01. This implies an EPS growth rate of -66.70% for this year and 238.57% for next year. EPS is expected to grow by 15.00% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 86.70%.
Float and Shares Shorts:
At present, 61.91 million CDMO shares are outstanding with a float of 61.26 million shares on hand for trading. On Oct 13, 2022, short shares totaled 4.86 million, which was 7.82% higher than short shares on Sep 14, 2022. In addition to Mr. Nicholas Stewart Green B.Sc., MBA as the firm’s Pres, CEO & Director, Mr. Daniel R. Hart serves as its Chief Financial Officer.
Through their ownership of 105.58% of CDMO’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 53.93% of CDMO, in contrast to 49.73% held by mutual funds. Shares owned by individuals account for 0.79%. As the largest shareholder in CDMO with 14.39% of the stake, BlackRock Fund Advisors holds 8,948,387 shares worth 8,948,387. A second-largest stockholder of CDMO, The Vanguard Group, Inc., holds 4,066,616 shares, controlling over 6.54% of the firm’s shares. Fidelity Management & Research Co is the third largest shareholder in CDMO, holding 3,998,827 shares or 6.43% stake. With a 7.38% stake in CDMO, the iShares Core S&P Small Cap ETF is the largest stakeholder. A total of 4,586,004 shares are owned by the mutual fund manager. The SPDR S&P Biotech ETF, which owns about 3.31% of CDMO stock, is the second-largest Mutual Fund holder. It holds 2,055,604 shares valued at 34.82 million. Vanguard Total Stock Market Index holds 2.98% of the stake in CDMO, owning 1,849,524 shares worth 31.33 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for CDMO since 4 analysts follow the stock currently. There are 3 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 1 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With CDMO analysts setting a high price target of $30.00 and a low target of $22.00, the average target price over the next 12 months is $26.00. Based on these targets, CDMO could surge 109.35% to reach the target high and rise by 53.52% to reach the target low. Reaching the average price target will result in a growth of 81.44% from current levels.
EPS: Estimates vs Actual
It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. CDMO will report FY 2023 earnings on 06/28/2023. Analysts have provided yearly estimates in a range of $0.25 being high and $0.05 being low. For CDMO, this leads to a yearly average estimate of $0.12. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Avid Bioservices Inc. surprised analysts by $0.01 when it reported $0.05 EPS against a consensus estimate of $0.04. The surprise factor in the prior quarter was $0.05. Based on analyst estimates, the high estimate for the next quarter is $0.05 and the low estimate is -$0.01. The average estimate for the next quarter is thus $0.01.
Summary of Insider Activity:
Insiders traded CDMO stock several times over the past three months with 9 Buys and 6 Sells. In these transactions, 27,965 shares were bought while 17,076 shares were sold. The number of buy transactions has increased to 58 while that of sell transactions has risen to 39 over the past year. The total number of shares bought during that period was 281,610 while 171,037 shares were sold.