Athersys Stock Story

ATHX -  USA Stock  

USD 0.25  0.03  10.71%

Today we may see the proof that Brickell Biotech would recover slower from the current drop as its shares fell 8.33% to Athersys's 8%. As many rational traders are trying to avoid healthcare space, it makes sense to break down Athersys a little further and understand how it stands against Brickell Biotech and other similar entities. We are going to inspect some of the competitive aspects of both Athersys and Brickell.
Published over three months ago
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Athersys Current Investor Sentiment

Investor biases related to Athersys' public news can be used to forecast risks associated with investment in Athersys. The trend in average sentiment can be used to explain how an investor holding Athersys can time the market purely based on public headlines and social activities around Athersys. Please note that most equiteis that are difficult to arbitrage are affected by market sentiment the most.
Athersys' market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Athersys' and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average Athersys' news discussions. The higher the estimate score, the more favorable is the investor's outlook on Athersys.
Will Athersys (NASDAQ:ATHX) shadow Brickell Biotech price rise?
By analyzing existing technical indicators between Athersys and Brickell, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Brickell with a short position in Athersys. Check out our pair correlation module for more information.

Let's begin by analyzing the assets.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Athersys has an asset utilization ratio of 24.12 percent. This suggests that the company is making $0.24 for each dollar of assets. An increasing asset utilization means that Athersys is more efficient with each dollar of assets it utilizes for everyday operations.

Watch out for price decline

Please consider monitoring Athersys on a daily basis if you are holding a position in it. Athersys is trading at a penny-stock level, and the possibility of delisting is much higher compared to other equities. However, just because the stock is trading under one dollar, does not mean it will be marked for deletion. Most exchanges require public instruments, such as Athersys stock to be traded above the $1 level to remain listed. If Athersys stock price falls below $1 for 30 consecutive trading days, the exchange can delist it. Once the company reaches this point, they will be sent an initial price violation notice directly from an exchange.

How important is Athersys's Liquidity

Athersys financial leverage refers to using borrowed capital as a funding source to finance Athersys ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Athersys 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. Please check the breakdown between Athersys's total debt and its cash.

How does Athersys utilize its cash?

To perform a cash flow analysis of Athersys, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Athersys is receiving and how much cash it distributes out in a given period. The Athersys cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Athersys Net Cash Flow from Operations is fairly stable at the moment as compared to the past year. Athersys reported Net Cash Flow from Operations of (76.19 Million) in 2021

Acquisition by Hansen Maia of 50000 shares of Athersys subject to Rule 16b-3

Legal trades by Athersys insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Athersys insider trading alert for grant of stock option (right to purchase) by Hansen Maia, Chief Operating Officer, on 23rd of June 2022. This event was filed by Athersys Inc with SEC on 2022-06-23. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

What is the case for Athersys Investors

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Now, let's check Athersys revenue. Based on the latest financial disclosure, Athersys reported 6.06 M of revenue. This is 99.92% lower than that of the Healthcare sector and 99.18% lower than that of the Biotechnology industry. The revenue for all United States stocks is 99.94% higher than that of Athersys. As for Brickell Biotech we see revenue of 327 K, which is 99.96% lower than that of the Biotechnology

Sector
742.9 M
ATHX6.06 Million0.81
Sector742.91 Million99.15
BBI327,0000.0436

Athersys current slide is confusing

Current Information Ratio is up to -0.09. Price may slide again. Athersys exhibits very low volatility with skewness of 1.0 and kurtosis of 2.3. However, we advise investors to further study Athersys technical indicators to make sure all market info is available and is reliable. Athersys is a potential penny stock. Although Athersys may be in fact a good instrument to invest, many penny stocks are speculative in nature and are subject to artificial price hype. Please make sure you totally understand the upside potential and downside risk of investing in Athersys. We encourage investors to look for the signals such us email spams, message board hypes, claims of breakthroughs, volume upswings, sudden news releases, promotions that are not reported, or demotions released before SEC filings. Please also check biographies and work history of current and past company officers before investing in high volatility instruments, penny stocks, or equities with microcap classification. You can indeed make money on Athersys instrument if you perfectly time your entry and exit. However, remember that penny stocks that have been the subject of an artificial hype usually unable to maintain its increased share price for more than just a few days. The price of a promoted high volatility instrument will almost always revert back. The only way to increase shareholder value is through legitimate performance backed up by solid fundamentals.

Our Conclusion on Athersys

While some other companies in the biotechnology industry are either recovering or due for a correction, Athersys may not be as strong as the others in terms of longer-term growth potentials. The inconsistency in the assessment between current Athersys valuation and our trade advice on Athersys is due to the recent market swings and your selection of investing horizon. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Athersys.

Editorial Staff

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Athersys. Please refer to our Terms of Use for any information regarding our disclosure principles.

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