ADMA Biologics Inc. (ADMA) Clearly Signals Buy-Into the Stock: Don’t ignore the signals

ADMA Biologics Inc. (NASDAQ: ADMA) stock fell -2.23% on Thursday to $3.94 against a previous-day closing price of $4.03. With 2.06 million shares changed hands, the volume of the stock remained lighter than its average volume of 2.42 million shares. During the session, the Biotechnology company that operates in wider Healthcare sector, reached to the highest price of $4.0100 whereas the lowest price it dropped to was $3.8500. The 52-week range on ADMA shows that it touched its highest point at $4.30 and its lowest point at $1.84 during that stretch. It currently has a 1-year price target of $5.12. Beta for the stock currently stands at 0.88.

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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 ADMA was down-trending over the past week, with a drop of -2.48%, but this was up by 19.39% over a month. Three-month performance surged to 15.20% while six-month performance rose 21.98%. The stock gained 114.13% in the past year, while it has gained 1.55% so far this year. A look at the trailing 12-month EPS for ADMA yields -0.24 with Next year EPS estimates of 0.07. For the next quarter, that number is -0.03. This implies an EPS growth rate of 35.10% for this year and 177.80% for next year.

Float and Shares Shorts:

At present, 221.92 million ADMA shares are outstanding with a float of 176.84 million shares on hand for trading. On Apr 27, 2023, short shares totaled 11.31 million, which was 5.09% higher than short shares on Mar 30, 2023. In addition to Mr. Adam S. Grossman as the firm’s Co-Founder, Pres, CEO & Director, Dr. Jerrold B. Grossman D.P.S., Ph.D. serves as its Co-Founder & Vice Chairman.

Institutional Ownership:

Through their ownership of 73.90% of ADMA’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 49.66% of ADMA, in contrast to 26.15% held by mutual funds. Shares owned by individuals account for 24.72%. As the largest shareholder in ADMA with 6.62% of the stake, BlackRock Fund Advisors holds 14,695,405 shares worth 14,695,405. A second-largest stockholder of ADMA, SSgA Funds Management, Inc., holds 12,988,589 shares, controlling over 5.85% of the firm’s shares. Perceptive Advisors LLC is the third largest shareholder in ADMA, holding 11,900,255 shares or 5.36% stake. With a 3.81% stake in ADMA, the SPDR S&P Biotech ETF is the largest stakeholder. A total of 8,461,411 shares are owned by the mutual fund manager. The Vanguard Total Stock Market ETF, which owns about 2.89% of ADMA stock, is the second-largest Mutual Fund holder. It holds 6,411,673 shares valued at 21.48 million. iShares Russell 2000 ETF holds 1.99% of the stake in ADMA, owning 4,419,983 shares worth 14.81 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 Mar 30, 2023, ADMA reported revenue of $33.91M and operating income of -$9.17M. The EBITDA in the recently reported quarter was -$7.47M and diluted EPS was -$0.07.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for ADMA since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With ADMA analysts setting a high price target of $6.00 and a low target of $4.50, the average target price over the next 12 months is $5.13. Based on these targets, ADMA could surge 52.28% to reach the target high and rise by 14.21% to reach the target low. Reaching the average price target will result in a growth of 30.2% 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.

Summary of Insider Activity:

Insiders traded ADMA stock several times over the past three months with 7 Buys and 6 Sells. In these transactions, 837,945 shares were bought while 86,401 shares were sold. The number of buy transactions has increased to 10 while that of sell transactions has risen to 14 over the past year. The total number of shares bought during that period was 874,903 while 570,399 shares were sold.

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