How Bearish Are People Regarding Axovant Sciences Ltd. (AXGT)?

In the period that ended February 15, 2019, short interest in Axovant Sciences Ltd. (NASDAQ:AXGT) stock is on the rise. The 23.32% advance could be an indication that investors and traders expect a deterioration in the stock price, often as a result of a deterioration in the business’ fundamentals. The average analyst recommendations at 2.1 suggests buying these shares. Between January 31 and February 15, the total number of shorted shares amounted to 5.17 million shares. That was 976,791 more shares than the total of 4.19 million shares in the space of prior two weeks, which means more traders or funds betting that the stock will go down. Average daily volume for AXGT at the February 15th settlement jumped to 1,969,804, as compared to 1,081,989 at the January 31st report. That brought days to cover to 2.622404, a 32.26% decrease from the 3.871416 days to cover recorded at the prior short interest data release.

Axovant Sciences Ltd. (AXGT) will probably climb 245 percent over the next 12 months, according to price target estimates compiled by finviz. Meanwhile, they have set a $7-month high price target. This represents a whopping 400 percent increase from where shares are trading today. The 12-month median price target assigned by the analysts stands at $6, which represents a return potential of 328.57 percent when compared to the closing price of the stock of $1.4 on Monday, March 04. The lowest price target for the stock is $2 — slightly more than 42.86 percent from AXGT’s current share price.

The stock is currently hovering around the first support level of $1.32. Below this, the next support is placed in the zone of $1.25. Till the time, the AXGT stock trades above this level, bulls have nothing to fear. On momentum oscillators front, ‘RSI’ has touched 65.01 on daily chart, which may remain a cause for concern. If the price breaks below $1.25 level on closing basis, then we may see more profit booking and the stock may show further weakness. On the flipside, hitting the $1.46 mark may result into a pull-back move towards $1.53 level.

On 4th of March, Axovant Sciences Ltd. (NASDAQ:AXGT) shares ended higher after a volatile session. The shares accumulated 0.06 points or 4.48 percent at $1.4 with a heavy trade volume of 2.486 million shares. After opening the session at $1.36, the shares went as high as $1.45 and as low as $1.31, the range within which the stock’s price traded throughout the day. The firm is left with a market cap of $226 million and now has 161.35 million shares outstanding. Axovant Sciences Ltd. (AXGT) stock has gained 33.33 percent of market value in 21 trading days.

AXGT stock has a trailing 3-year beta of 1.33, offering the possibility of a higher rate of return, but also posing more risk. The portion of a company’s profit allocated to each outstanding share of common stock was -$1.26 a share in the trailing twelve months. The stock’s value has surged 40.56 percent year to date (YTD) against a decline of -6.04 percent in 12 month’s time. The company’s shares still trade -78.76 percent away from its 1-year high of $6.59 and 50.54 percent up from 52-week low of $0.93. The average consensus rating on the company is 2.1, on a scale where 5 equates to a unanimous sell rating. In short, the mean analyst recommendations are calling this stock a sell.

Shares of Axovant Sciences Ltd. (AXGT) are trading at a P/E ratio of 0 times earnings reported for the past 12 months. The industry AXGT operates in has an average P/E of 86.11. Its P/E ratio went as low as 0X and as high as 0 over the 5-year span. Further, it is sporting a 0 on the Price-to-Sales ratio. Compare this with the industry average P/S of 47.6. 0 percent is the gross profit margin for Axovant Sciences Ltd. and operating margin sits at 0 percent. Along with this, the net profit margin is 0 percent.

Let’s take a look at some insider activity at Axovant Sciences Ltd. (NASDAQ:AXGT) and see the pattern. The earliest insider trade took place on 12/18/2018. Viking Global Investors Lp gathered a total of 10 million shares of company at average share price of $1. The total for the purchase was set at $10 million. After this transaction, the 10% Owner account balance stood at 99.29 million shares. The stock grew 40 percent since that insider purchase. On 12/18/2018, Viking Global Performance Llc, 10% Owner, purchased 10 million shares at a price per share of $1. This added 10 million shares to the insider’s fortune and the stock saw a 40 percent rally in value since the news became public. This transaction left 99.29 million shares in the 10% Owner account.

On 12/18/2018, 10% Owner Lo Andrew performed a purchase transaction worth $10 million. This purchase at $1 each has added 10 million shares into the insider’s portfolio position. Meanwhile, shares have recorded 40 percent increase since the transaction was reported. The insider now is left with 99.29 million shares remaining in the account. Svf Investments (Uk) Ltd, who performs the 10% Owner job, bought 10 million shares for $10 million. The acquisition occurred on 12/18/2018 was priced at $1 per share. The share price soared 40 percent since the reporting date. Svf Investments (Uk) Ltd now left with a stake of 99.29 million AXGT stock worth $139 million after the insider buying.