bluebird bio Inc. (NASDAQ: BLUE) stock jumped 0.60% on Friday to $3.35 against a previous-day closing price of $3.33. With 10.27 million shares changed hands, the volume of the stock remained heavier than its average volume of 4.14 million shares. The 52-week range on BLUE shows that it touched its highest point at $8.58 and its lowest point at $2.78 during that stretch. It currently has a 1-year price target of $7.10. Beta for the stock currently stands at 0.91.
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 BLUE was down-trending over the past week, with a drop of -6.16%, but this was down by -6.16% over a month. Three-month performance dropped to -16.04% while six-month performance fell -27.33%. The stock lost -52.35% in the past year, while it has lost -51.59% so far this year. A look at the trailing 12-month EPS for BLUE yields -1.03 with Next year EPS estimates of -1.66. For the next quarter, that number is -0.67. This implies an EPS growth rate of 58.50% for this year and 15.30% for next year. EPS is expected to grow by 45.80% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 19.70%.
Float and Shares Shorts:
At present, 108.69 million BLUE shares are outstanding with a float of 106.04 million shares on hand for trading. On Aug 30, 2023, short shares totaled 26.04 million, which was 24.35% higher than short shares on Jul 30, 2023. In addition to Mr. Andrew Obenshain as the firm’s Pres, CEO & Director, Mr. Thomas J. Klima serves as its Chief Commercial Officer & COO.
Through their ownership of 94.72% of BLUE’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 6.50% of BLUE, in contrast to 46.30% held by mutual funds. Shares owned by individuals account for 40.50%. As the largest shareholder in BLUE with 15.30% of the stake, SSgA Funds Management, Inc. holds 16,358,130 shares worth 16,358,130. A second-largest stockholder of BLUE, BlackRock Fund Advisors, holds 7,742,289 shares, controlling over 7.24% of the firm’s shares. Tang Capital Management LLC is the third largest shareholder in BLUE, holding 7,382,827 shares or 6.90% stake. With a 13.30% stake in BLUE, the SPDR S&P Biotech ETF is the largest stakeholder. A total of 14,224,430 shares are owned by the mutual fund manager. The Vanguard Total Stock Market ETF, which owns about 3.17% of BLUE stock, is the second-largest Mutual Fund holder. It holds 3,387,541 shares valued at 12.77 million. iShares Russell 2000 ETF holds 2.28% of the stake in BLUE, owning 2,441,031 shares worth 9.2 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 Jun 29, 2023, BLUE reported revenue of $1.52M and operating income of -$100.76M. The EBITDA in the recently reported quarter was -$92.78M and diluted EPS was -$1.36.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for BLUE 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 BLUE analysts setting a high price target of $11.00 and a low target of $3.00, the average target price over the next 12 months is $7.10. Based on these targets, BLUE could surge 228.36% to reach the target high and fall by -10.45% to reach the target low. Reaching the average price target will result in a growth of 111.94% 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 BLUE stock several times over the past three months with 0 Buys and 1 Sells. In these transactions, 0 shares were bought while 16,929 shares were sold. The number of buy transactions has increased to 13 while that of sell transactions has risen to 11 over the past year. The total number of shares bought during that period was 377,003 while 36,402 shares were sold.