Take off with Axcella Health Inc. (AXLA): Get ready for trading

Axcella Health Inc. (NASDAQ: AXLA) stock jumped 2.41% on Monday to $0.43 against a previous-day closing price of $0.42. With 3.16 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.78 million shares. During the session, the Biotechnology company that operates in wider Healthcare sector, reached to the highest price of $0.4650 whereas the lowest price it dropped to was $0.4000. The 52-week range on AXLA shows that it touched its highest point at $2.89 and its lowest point at $0.16 during that stretch. It currently has a 1-year price target of $7.17. Beta for the stock currently stands at 1.23.

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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 AXLA was down-trending over the past week, with a drop of -8.18%, but this was up by 30.70% over a month. Three-month performance dropped to -71.90% while six-month performance fell -78.28%. The stock lost -75.84% in the past year, while it has gained 31.30% so far this year. A look at the trailing 12-month EPS for AXLA yields -1.66 with Next year EPS estimates of -1.03. For the next quarter, that number is -0.30. This implies an EPS growth rate of 4.80% for this year and 30.90% for next year.

Float and Shares Shorts:

At present, 73.55 million AXLA shares are outstanding with a float of 61.31 million shares on hand for trading. On Dec 29, 2022, short shares totaled 0.34 million, which was 0.46% higher than short shares on Nov 29, 2022. In addition to Mr. William R. Hinshaw Jr. as the firm’s Pres, CEO & Director, Dr. Alison D. Schecter M.D. serves as its Pres of Strategy & Operations.

Institutional Ownership:

Through their ownership of 60.65% of AXLA’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 38.70% of AXLA, in contrast to 3.55% held by mutual funds. Shares owned by individuals account for 11.26%. As the largest shareholder in AXLA with 10.74% of the stake, Fidelity Management & Research Co holds 7,896,496 shares worth 7,896,496. A second-largest stockholder of AXLA, The Vanguard Group, Inc., holds 760,683 shares, controlling over 1.03% of the firm’s shares. Invus Public Equities Advisors LL is the third largest shareholder in AXLA, holding 712,500 shares or 0.97% stake. With a 4.40% stake in AXLA, the Fidelity Growth Company Fund is the largest stakeholder. A total of 3,238,455 shares are owned by the mutual fund manager. The Fidelity Select Port. – Biotechno, which owns about 2.26% of AXLA stock, is the second-largest Mutual Fund holder. It holds 1,661,354 shares valued at 0.54 million. Fidelity Growth Company K6 Fund holds 1.36% of the stake in AXLA, owning 1,000,478 shares worth 0.33 million.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Sep 29, 2022, AXLA reported revenue of $0.00 and operating income of -$20.62M. The EBITDA in the recently reported quarter was -$20.47M and diluted EPS was -$0.40.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for AXLA 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 AXLA analysts setting a high price target of $8.00 and a low target of $1.50, the average target price over the next 12 months is $5.13. Based on these targets, AXLA could surge 1760.47% to reach the target high and rise by 248.84% to reach the target low. Reaching the average price target will result in a growth of 1093.02% 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. AXLA will report FY 2022 earnings on 03/27/2024. Analysts have provided yearly estimates in a range of -$1.21 being high and -$1.68 being low. For AXLA, this leads to a yearly average estimate of -$1.46. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Axcella Health Inc. surprised analysts by $0.03 when it reported -$0.34 EPS against a consensus estimate of -$0.37. The surprise factor in the prior quarter was -$0.03. Based on analyst estimates, the high estimate for the next quarter is -$0.22 and the low estimate is -$0.40. The average estimate for the next quarter is thus -$0.31.

Summary of Insider Activity:

Insiders traded AXLA stock several times over the past three months with 0 Buys and 0 Sells. In these transactions, 0 shares were bought while 0 shares were sold. The number of buy transactions has increased to 19 while that of sell transactions has risen to 5 over the past year. The total number of shares bought during that period was 23,742,161 while 34,280 shares were sold.

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