The healthcare sector is a battlefield of innovation, and Actinium Pharmaceuticals (ATNM) is a soldier on the front lines. With a market capitalization of $217.4M, Actinium is a clinical-stage biopharmaceutical company that develops targeted radiotherapies to treat patients with high unmet medical needs. Despite a negative return on assets of 0.32 and a loss of $47.8M in free cash flow, the company's end period cash flow stands at a robust $83.3M, with cash and short-term investments amounting to $108.9M. However, Actinium's
financial health is not the only factor to consider. The company's lead product candidate, I-131 apamistamab, is in a pivotal Phase III clinical trial, which could significantly impact its stock performance. The company's EPS estimate for the current year is a loss of $2.05, with an estimated loss of $0.49 for the next quarter. Despite these challenges, Actinium's stock has potential. The company's typical day price is $7.91, with a naive expected forecast value of $8.63. Analysts have given two buy recommendations, with the lowest estimated target price at $25.12 and the highest at $30.64. The possible upside price is $14.63, indicating potential for significant growth. In comparison to Valneva (VALN), Actinium's potential for innovation and growth in the biotechnology sector, coupled with its strong cash position, may position it to outperform in the US stock market. However, investors should be mindful of the company's negative financial indicators and the inherent risks of investing in the healthcare sector. Valneva SE's share price rose by 0.5% today, outpacing Actinium Pharmaceuticals' 1.39%. This suggests Valneva may face a quicker correction. As interest in the biotechnology sector grows, both Actinium Pharmaceuticals and Valneva SE present potential short-term opportunities. We will focus on their competitive aspects for a more comprehensive review.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two entities, such as Actinium or Adaptimmune is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.
How important is Actinium Pharmaceuticals's Liquidity
Actinium Pharmaceuticals
financial leverage refers to using borrowed capital as a funding source to finance Actinium Pharmaceuticals ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Actinium Pharmaceuticals financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Financial leverage can amplify the potential profits to Actinium Pharmaceuticals' owners, but it also increases the potential losses and risk of financial distress, including bankruptcy, if the firm cannot cover its debt costs. The degree of Actinium Pharmaceuticals' financial leverage can be measured in several ways, including by ratios such as the debt-to-equity ratio (total debt / total equity), equity multiplier (total assets / total equity), or the debt ratio (total debt / total assets). Please check the
breakdown between Actinium Pharmaceuticals's total debt and its cash.
Correlation Between Actinium and Adaptimmune Therapeutics
In general, Stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Actinium Pharmaceuticals together with similar or unrelated positions with a negative correlation. For example, you can also add Adaptimmune Therapeutics to your portfolio. If Adaptimmune Therapeutics is not perfectly correlated to Actinium Pharmaceuticals it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Actinium Pharmaceuticals, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Are you currently holding both Actinium Pharmaceuticals and Adaptimmune Therapeutics in your portfolio? Please note if you are using this as a pair-trade strategy between Actinium Pharmaceuticals and Adaptimmune Therapeutics, watch out for correlation discrepancy over time. Relying on the historical price correlations and assuming that it will not change may lead to short-term losses. Please check
pair correlation details between ATNM and ADAP for more information.
Breaking it down a bit more
Total Debt Breakdown
Let me now analyze Actinium Pharmaceuticals total debt. Based on the latest financial disclosure, Actinium Pharmaceuticals has a Total Debt of 2.58
M. This is 99.91% lower than that of the Biotechnology sector and 99.21% lower than that of the
Health Care industry. The total debt for all United States stocks is 99.95% higher than that of the firm. As for Valneva SE we see total debt of 208.82
M, which is 35.71% lower than that of the Health Care
| ATNM | 2.58 Million | 0.48 |
| Sector | 324.78 Million | 60.57 |
| VALN | 208.82 Million | 38.94 |
As Warren Buffet once said, "Price is what you pay.
Value is what you get." Actinium Pharmaceuticals (ATNM) seems to be a promising player in the biotechnology industry, with a strong current ratio of 18.83X and a healthy net asset value of $114.19M. Despite reporting an EBITDA loss of $52.6M and a negative EPS estimate for the current year of $2.05, the company's robust cash position of $108.9M and low total debt of $2.58M suggest a solid financial footing. Furthermore, with a Wall Street target price of $25.47, significantly higher than the current price, Actinium Pharmaceuticals appears poised to outperform Valneva in the US stock market. However, investors should be mindful of the company's high price to sales ratio of 266.69X and the potential downside of 8.33. .
Our take on Actinium Pharmaceuticals small decline
Actinium Pharmaceuticals recently saw a 19.95 downside variance, indicating a slight dip in its stock value. This might alarm some investors, but it's essential to consider the inherent volatility of the pharmaceutical sector. Stock values in this industry can swing based on clinical trial outcomes, regulatory approvals, and market demand. Despite the recent downturn, Actinium's strong pipeline and innovative approach to cancer therapies could potentially yield significant long-term returns. Thus, investors might view this decline as a buying opportunity rather than a concern. Actinium Pharmaceuticals shows above-average semi-deviation, and understanding
market volatility trends can help investors time the market. Volatility indicators can measure Actinium's stock risk against market volatility during bullish and bearish trends.
The increased volatility of bear markets can impact Actinium's stock price and stress investors as they see their shares' value drop, often prompting portfolio rebalancing. Despite a slight decline of 1 percent, Actinium Pharmaceuticals, Inc., a clinical-stage biopharmaceutical company, remains a promising investment according to analysts. With an overall consensus of
Strong Buy, bolstered by 3 strong buys and 2 additional buys, the company holds potential. The firm's valuation real value stands at
$12.35, significantly above its market value of $7.83. Additionally, the analyst target price estimated value is an impressive
$27.6, with the highest estimated target price reaching as high as $30.64. Considering these factors, the company's lead product candidate, I-131 apamistamab, in a pivotal Phase III clinical trial for bone marrow transplant conditioning, investors should consider the potential upside price of $14.63, despite the possible downside price of $2.63. .
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Ellen Johnson is a Member of Macroaxis Editorial Board. Ellen covers public companies in North America, focusing primarily on valuation and volatility. Six years of experience in predictive investment analytics and risk management.
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