Adverum Biotechnologies Inc. (ADVM) Volatility Spurs A Quest For Clarity


RA Capital Management LLC recently announced the acquisition of new stake in Adverum Biotechnologies Inc. (NASDAQ:ADVM). The institutional investor has increased its shareholding in the Healthcare company by 7.27% to 7.8 million shares with purchase of 0.53 million shares. This fresh investment now brings its stake to 9.72% valued currently at $130.83 million. In addition, Avoro Capital Advisor LLC raised its holdings by 0.43 million to 7.58 million shares. And RTW Investments LP has lifted its position by 2.39% or 0.16 million shares – to 6.79 million shares.

With over 1.13 million Adverum Biotechnologies Inc. (ADVM) shares trading Friday and a closing price of $12.97 on the day, the dollar volume was approximately $14.69 million. The shares have shown a negative weekly performance of -2.41% and its price on 08/21/20 lost nearly -1.37%. Currently, there are 80.23M common shares owned by the public and among those 55.27M shares have been available to trade.

An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 9 analysts who have offered their price forecasts for ADVM have a consensus price objective of $28.43. The analysts have set the share’s price value over the next 12 months at a high of $36.00 and a low of $21.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Adverum Biotechnologies Inc. stock is 2.10 for the next 12 months. But an upside of 63.97% will see the stock hit the forecast high price target while mean target price for the stock is $30.00.

Insiders at the company have transacted a total of 51 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 22 of these insider trades were purchases, accounting for 393,733 shares. Insider sales of the common stock occurred on 29 occasions, with total insider shares sold totaling 401,523 shares.

The top 3 mutual fund holders in Adverum Biotechnologies Inc. are SPDR S&P Biotech ETF, Vanguard Total Stock Market Index, and iShares Russell 2000 ETF. SPDR S&P Biotech ETF owns 2.11 million shares of the company’s stock, all valued at over $35.32 million. The company sold 21105.0 shares recently to bring their total holdings to about 2.62% of the shares outstanding. Vanguard Total Stock Market Index sold 2510.0 shares to see its total holdings shrink to 2.07 million shares valued at over $34.7 million and representing 2.58% of the shares outstanding. iShares Russell 2000 ETF sold 70210.0 shares to bring its total holdings to over 1.5 million shares at a value of $25.17 million. iShares Russell 2000 ETF now owns shares totaling to 1.87% of the shares outstanding.

Shares of Adverum Biotechnologies Inc. (NASDAQ: ADVM) opened at $13.17, up $0.02 from a prior closing price of $13.15. However, the script later closed the day at $12.97, down -1.37%. The company’s stock has a 5-day price change of -2.41% and -36.92% over the past three months. ADVM shares are trading 12.59% year to date (YTD), with the 12-month market performance up to 18.02% higher. It has a 12-month low price of $4.96 and touched a high of $26.98 over the same period. Currently, 1.13 million shares have been traded, compared to an average intraday trading volume of 1.33 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by -19.22%, -31.67%, and -9.52% respectively.

Institutional ownership of Adverum Biotechnologies Inc. (NASDAQ: ADVM) shares accounts for 86.00% of the company’s 80.23M shares outstanding. Mutual fund holders own 3.69%, while other institutional holders and individual stakeholders account for 64.27% and 26.35% respectively.

It has a market capitalization of $1.25B and a beta (3y monthly) value of 1.86. The earnings-per-share (ttm) stands at -$1.22. Price movements for the stock have been influenced by the stock’s volatility, which stands at 5.45% over the week and 7.42% over the month.

Analysts forecast that Adverum Biotechnologies Inc. (ADVM) will achieve an EPS of -$0.35 for the current quarter, -$0.39 for the next quarter and -$1.49 for 2021. The lowest estimate earnings-per-share for the quarter is -$0.39 while analysts give the company a high EPS estimate of -$0.29. Comparatively, EPS for the current quarter was -$0.25 a year ago. Earnings per share for the fiscal year are expected to increase by 15.00%, and -7.20% over the next financial year.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 9 brokerage firm advisors rate Adverum Biotechnologies Inc. (ADVM) as a “Moderate Buy” at a consensus score of 2.10. Specifically, 8 Wall Street analysts polled rate the stock as a buy, while 0 of the 9 advise that investors “hold,” and 1 rated it as a “Sell.”

Looking at the support for the ADVM, a number of firms have released research notes about the stock. Raymond James stated their Underperform rating for the stock in a research note on June 26, 2020, with the firm’s price target at. RBC Capital Mkts coverage for the Adverum Biotechnologies Inc. (ADVM) stock in a research note released on May 13, 2020 offered a Outperform rating with a price target of $24. SunTrust was of a view on May 05, 2020 that the stock is Buy, while Goldman gave the stock Buy rating on April 28, 2020, issuing a price target of $17. SVB Leerink on their part issued Outperform rating on March 16, 2020.


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