Investors are currently taking a closer look at Organovo Holdings, Inc (NASDAQ:$ONVO), noting encouraging results thus far. The stock currently moved 1.48% up, to a trading price of $2.06. The stock also had 0.69 million shares changing hands, slightly short of the average trade volume of 0.8 million. The volume can help to measure the strength of a stock move and may use volume to determine a breakout by measuring resistance or support levels.
What are Analysts Saying?
Organovo currently has a consensus analyst rating of 1.30. This uses a scale from 1-5 wherein 1 indicates a ‘Strong Buy’, 2 means a ‘Buy’, 3 means a ‘Hold’, 4 means a ‘Sell’, and 5 means a ‘Strong Sell’. That would put Organovo at just slightly below a ‘Strong Buy’.
And How are Organovo Performing?
Over the last five trading days, Organovo has built a bearish reputation. According to Analysts, Organovo saw poor motion that weakened the stock. It also saw a -11.97% move from last week. Monthly dynamic performance saw a growth of 13.81%. This optimistic signal is due to the ascending monthly return.
Measuring the quarterly performance reveals indicators that the stock is trending downward. In the last 3 months, the stock dropped -22.85%. This is increased to -31.56% over the last six months. In one year, the stock has moved -46.77%.
The YTD – or the performance from the beginning of the first day of the current calendar year up to date – sits at an unappealing -39.23%.
What are the Risks?
Though returns are nice, there are a number of other factors to consider when investing in a stock. Return directly correlates to risk. A higher potential return generally is indicated by a higher risk factor. This is where the beta comes in handy.
The beta measures how a stock is doing compared to a benchmark such as the Composite index or the S&P TSX. The beta starts at 1.0 and swings in either direction to indicate the volatility and risk of a certain stock, with anything below 1 being relatively stable and anything above indicating a risky investment.
In regards to this, Organovo currently stands at 3.02, which means that despite its potential high return, it carries a significant risk.
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