Adverum Biotechnologies, Inc. (ADVM): what caused a meltdown today?

An interesting stock that came up in some of our conversations today is Adverum Biotechnologies, Inc. (NASDAQ:ADVM). At current price of $11.6, the shares have already lost -0.85 points (-6.83% lower) from its previous close of $12.45. Should you buy or avoid them? The stock sets an active trading volume day with a reported 1341502 contracts so far this session. ADVM shares had a relatively better volume day versus average trading capacity of 1.14 million shares, but with a 56.21 million float and a 20.52% run over a week, it’s definitely worth keeping an eye on. The one year price forecast for ADVM stock indicates that the average analyst price target is $9.75 per share. This means the stock has a potential decrease of -15.95% from where the ADVM share price has been trading recently which is between $11.545 and $12.53. There are some brokerage firms that offer lower targets than the average, with one of them, even setting their price target at $3.

The shorts are climbing into Adverum Biotechnologies, Inc. (ADVM) stock. The latest set of short interest data was released on 15 August 2019, and the numbers show a rise in short interest in ADVM shares. While short interest still represents only 16.56% of ADVM’s float, the number of shares shorted have risen by 1846616. The number of shares shorted advanced to 9306710 shares, up from 7460094 shares during the preceding fortnight. With average daily trading volumes at 1291167 shares, days to cover increased to about 6.849351 days. The most recent news story about the stock that appeared in Yahoo Finance‘s news section was titled “Adverum Biotechnologies to Host a Conference Call and Webcast to Present 24-week Data from First Cohort of OPTIC Trial of ADVM-022 Intravitreal Injection Gene Therapy to Treat Wet AMD at Retina Society 2019 Annual Meeting” and dated September 04, 2019.

During the recent trading session for Adverum Biotechnologies, Inc. (NASDAQ:ADVM), the company witnessed their stock rise $1.19 over a week and surge $0.11 from the price 20 days ago. When compared to their established 52-week high of $16.38, the high they recorded in their recent session happens to be lower. Their established 52-week high was attained by the company on 07/16/19. The recent low of $2.62 stood for a -29.2% since 11/02/18, a data which is good for most investors who are looking to take advantage of the stock’s recent rise. A beta of 2.58 is also allocated to the stock. Since the beta is greater than one, it implies that the stock is more volatile than the market, a data that traders are keeping close attention to.

Looking at the current readings for Adverum Biotechnologies, Inc., the two-week RSI stands at 47.35. This figure suggests that ADVM stock, for now, is neutral, meaning that the shares are stable in terms of price movement. The stochastic readings, on the other hand, based on the current ADVM readings is similarly very revealing as it has a stochastic reading of 62.98% at this stage. This figure means that ADVM share price today is being neutral.

Technical chart claims that Adverum Biotechnologies, Inc. (ADVM) would settle between $12.8/share to $13.16/share level. However, if the stock price goes below the $11.82 mark, then the market for Adverum Biotechnologies, Inc. becomes much weaker. If that happens, the stock price might even plunge as low as $11.19 for its downside target. The stock is currently in the green zone of MACD, with the indicator reading 0.74. Traders are always alerted for the move of a stock above or below the zero line due to the fact that the reading is an indicator of the position of the short-term average relative to the long-term average. If the MACD is above the zero line, then the short-term average relative is above that of the long-term average, thus implying an upward momentum. Vice versa is the case if the MACD is below the zero line.

Analysts at Raymond James, assumed coverage of ADVM assigning Mkt Perform rating, according to their opinion released on June 14. SunTrust analysts have lowered their rating of Adverum Biotechnologies, Inc. (NASDAQ:ADVM) stock from Buy to Hold in a separate flash note issued to investors on November 02. Analysts at Raymond James lowered the stock to a Mkt Perform call from its previous Outperform recommendation, in a research note that dated back to November 02.

ADVM equity has an average rating of 2.33, with the figure leaning towards a bullish end. 6 analysts who tracked the company were contacted by Reuters. Amongst them, 4 rated the stock as a hold while the remaining 2 were split even though not equally. Some analysts rate the stock as a buy or a strong buy while no rated it as a sell. 2 analysts rated Adverum Biotechnologies, Inc. (NASDAQ:ADVM) as a buy or a strong buy while not a single analyst advised that investors should desist from purchasing the stock or sell them if they already own the company’s stock.

Moving on, ADVM stock price is currently trading at 0X forward 12-month Consensus EPS estimates, and its P/E ratio is NA while for the average stock in the same group, the multiple is -6.49. Adverum Biotechnologies, Inc. current P/B ratio of 4.47 means it is trading at a premium against its industry’s 3.44.

Adverum Biotechnologies, Inc. (ADVM)’s current-quarter revenues are projected to climb by nearly -42.17% to hit $0.48 million, based on current Zacks Consensus Estimate. The firm’s full-year revenues are expected to expand by over -40.45% from $1.61 million to a noteworthy $0.96 million. At the other end of the current quarter income statement, Adverum Biotechnologies, Inc. is expected to see its adjusted earnings surge by roughly -3.85% to hit $-0.27 per share. For the fiscal year, ADVM’s earnings are projected to climb by roughly 13.56% to hit $-1.02 per share.