Gut Call On Fortress Biotech, Inc. (FBIO): Now It’s Really Down Too Much

Fortress Biotech, Inc. (NASDAQ:FBIO) is one of the hottest stocks trading today on the U.S. Markets as the company shares are 3.98% or 0.07 points lower from last closing price of $1.76, reaching $1.69 at last check. Any clue why there is so much of action in the FBIO stock? The share price has dropped in 3 of the last 5 days and is down -10.2% over the past week. It will be exciting to see whether the stock manages to continue decreasing or take a minor break for the next few days. The move came on weak volume too with far less shares changing hands than in a normal session. Trading activity as of this writing weakened by -193,312 shares, and in total 202188 shares valued at $341698 were seen changing hands compared with 395500 shares valued at $696080 recorded at the previous session. You should take into consideration that a falling volume on lower prices shows the bearish trend but this is an early indication which means that the FBIO stock is near its bottom.

Fortress Biotech, Inc. (FBIO) shares have notched a 3-month decline of about -10.2%, but has still advanced 104.65% year to date. By comparison, the stock sank -48.08% over the past 12 months, while it jumped 4.14% over the 1 month. The company’s market cap is around $120.49M, with its short interest ratio standing at 3.87%.

In the current trading session for FBIO, the stock witnessed two major price actions, it rose to a high of $1.78 and was down as much as $1.66 at one point. The high recorded is very low when compared to their 52-week high which is $0.49. The 52-week high is now at -51.01 distance from current price. Their recent low of $3.45 represents a 244.9% recovery. This data is quite important for investors who look to benefit from the recent rise of the company’s stock. The price target currently for FBIO is $11, this is above the recent high that the stock attained. Taking a look at the overall sentimental views of financial analysts, the trading pattern of this stock recently is very clear.

The stock of Fortress Biotech, Inc. earned $-1.21 per share in the trailing 12 months and has a P/E ratio of -1.4. You can compare it with that of similar companies in its industry to get a sense of whether the stock you’re looking to purchase is overvalued or undervalued. Its current price to earnings ratio is lower than the ones recorded by the industry which is 32.58 and lower compared to the sector’s average of 37.46. When the P/E ratio is low let’s say below 1.0, then the stock price is considered a good value. FBIO also has P/S multiple of 4.21. This is smaller versus the 12 month P/S ratios of other companies in the same indutry. The peer average price to sales ratio is 8.22x.

The company recorded an interesting insider sale transaction by the SVP on Dec 11, 2018. A Securities and Exchanges Commission filings show that George Avgerinos sold a total of 97,325 FBIO shares that day for a sum of around $102,191. The filings show that the insider now retains 255,170 shares, currently worth $431,237. Fortress Biotech, Inc. (FBIO) insiders have acquired no shares in the stock within the past three months. The total insider sales reported to the SEC in that time frame amounted to shares. In total, individual insiders traded no shares in the business, which makes up 0% of 2,194,563 shares that were traded over a year. In the past 12 months, insiders have purchased 2,076,868 shares while the seller parted with 117,695 shares.

FBIO‘s last price was up 10.25% as compared to the average trading price of 50 days recorded at $1.53 while enlarging the period to 200 trading days, the average closing price was $1.72. At present, there are 68.46 million in the total number of common shares owned by the public and among those 45.53 million shares have been available to trade. The percentage of shares being held by the company management was 31.7% while institutions stake was 13.6%. The company has generated negative returns on equity over the last 12 months (0%). It managed to keep its gross profit margin at 76.2% over the past 12 months.

When assessing the full upside of the FBIO stock, there is another set of technicals that should be looked into and considered. Its -5.4% decline from moving average of $1.79 has brought about a negative sentiment when calculated over the last 20 days. The market has allocated a beta of 2.73 to the stock. With the beta been greater than one, this implies that the company shares are theoretically more volatile than the market, something that the traders definitely are keeping an eye on.

Most of the analysts surveyed by Thomson/First Call think quite highly of Fortress Biotech, Inc. — 1 analysts rate the stock as a buy with another 0 rating it strong buy. There are 0 analysts who maintain a hold rating for the stock, with 0 giving it a sell rating. Analysts arrived at a 12-month price target of $11 on shares of Fortress Biotech, Inc. (NASDAQ:FBIO), which corresponds to 547.06% upside potential than its current market price of $1.69 and implies potential despite the recent drop in the price. However, their current target price has fallen from $11 a month ago and is down handily from the consensus target of $11 a quarter ago.

In the last five years, the EPS of the company has been roughly -6.6%. Though the percentage looks disappointing, extra tailwinds are emerging as looking out over a next 5-year period, with analysts estimating that their earnings will increase annually by 26.2%. The revenue of the company has retreated at an average annualized rate of about 0 over the last five years. The company recently recorded an increase of 10.2%, but this figure is rather attractive.

Let’s briefly check the hedge fund interest towards FBIO stock. Morgan Stanley added position in the company after it grew 183.2% or 9,859 shares of its common stock. The hedge fund now owns 27,922 shares worth $47,188, SEC documents show. Charles Schwab Investment Management Inc. shored up assets in the stock as 63096.75 shares have been purchased, increasing its stake by 19.9% to 75,653 shares which are currently valued at $127,854. In addition, Jacobs Levy Equity Management Inc. recently reported that it now owns 125,901 shares making a total of $212,773 based on the recent price. This refelects a change of 356% in their ownership.