An analyst sees good growth prospects for AbCellera Biologics Inc. (ABCL)

AbCellera Biologics Inc. (NASDAQ: ABCL) stock fell -2.24% on Tuesday to $10.05 against a previous-day closing price of $10.28. With 1.26 million shares changed hands, the volume of the stock remained lighter than its average volume of 2.04 million shares. During the session, the Biotechnology company that operates in wider Healthcare sector, reached to the highest price of $10.20 whereas the lowest price it dropped to was $9.85. The 52-week range on ABCL shows that it touched its highest point at $14.97 and its lowest point at $5.42 during that stretch. It currently has a 1-year price target of $29.20.

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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 ABCL was down-trending over the past week, with a drop of -4.65%, but this was down by -5.19% over a month. Three-month performance dropped to -2.52% while six-month performance fell -0.50%. The stock gained 16.32% in the past year, while it has lost -0.79% so far this year. A look at the trailing 12-month EPS for ABCL yields 0.80 with Next year EPS estimates of -0.45. For the next quarter, that number is -0.01. This implies an EPS growth rate of 9.30% for this year and -170.30% for next year.

Float and Shares Shorts:

At present, 285.32 million ABCL shares are outstanding with a float of 203.83 million shares on hand for trading. On Oct 13, 2022, short shares totaled 19.53 million, which was 6.85% higher than short shares on Sep 14, 2022. In addition to Dr. Carl L.G. Hansen Ph.D. as the firm’s CEO, Pres & Chairperson, Mr. Andrew Booth M.B.A. serves as its Chief Financial Officer.

Institutional Ownership:

Through their ownership of 45.30% of ABCL’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 35.27% of ABCL, in contrast to 21.33% held by mutual funds. Shares owned by individuals account for 20.38%. As the largest shareholder in ABCL with 6.89% of the stake, Baillie Gifford & Co. holds 19,696,735 shares worth 19,696,735. A second-largest stockholder of ABCL, Voya Investment Management Co. LL, holds 10,777,597 shares, controlling over 3.77% of the firm’s shares. Baker Bros. Advisors LP is the third largest shareholder in ABCL, holding 10,450,180 shares or 3.65% stake. With a 2.09% stake in ABCL, the Allianz Global Investors Fund – A is the largest stakeholder. A total of 5,974,050 shares are owned by the mutual fund manager. The American Funds Small Cap World Fu, which owns about 1.92% of ABCL stock, is the second-largest Mutual Fund holder. It holds 5,480,000 shares valued at 55.51 million. SMDAM Global AI Equity Mother Fun holds 1.70% of the stake in ABCL, owning 4,848,480 shares worth 49.12 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for ABCL since 10 analysts follow the stock currently. There are 10 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 0 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 ABCL analysts setting a high price target of $43.00 and a low target of $18.00, the average target price over the next 12 months is $29.20. Based on these targets, ABCL could surge 327.86% to reach the target high and rise by 79.1% to reach the target low. Reaching the average price target will result in a growth of 190.55% 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. ABCL will report FY 2022 earnings on 02/23/2024. Analysts have provided yearly estimates in a range of $0.94 being high and $0.53 being low. For ABCL, this leads to a yearly average estimate of $0.67. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. AbCellera Biologics Inc. surprised analysts by $0.02 when it reported $0.08 EPS against a consensus estimate of $0.06. The surprise factor in the prior quarter was -$0.02. Based on analyst estimates, the high estimate for the next quarter is $0.09 and the low estimate is -$0.06. The average estimate for the next quarter is thus $0.01.

Summary of Insider Activity:

Insiders traded ABCL stock several times over the past three months with 3 Buys and 2 Sells. In these transactions, 191,227 shares were bought while 120,000 shares were sold. The number of buy transactions has increased to 17 while that of sell transactions has risen to 2 over the past year. The total number of shares bought during that period was 2,942,492 while 120,000 shares were sold.

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