Axcella Health, a leading health company, has recently obtained the green light from its board of directors to proceed with a significant change in its common stock structure. This change, known as a 1-for-25 reverse stock split, will come into effect on the notable date of September 19, 2023.
Under this reverse stock split, every AXLA Common Share owned by shareholders will be converted into 0.04 AXLA1 Common Shares. The primary motive behind this strategic move is to ensure compliance with the minimum per share bid price requirement, a crucial aspect of maintaining a healthy stock market presence.
However, since the announcement of this reverse stock split, Axcella Health has experienced a temporary setback in its stock value. The company’s shares have witnessed a decline of 18%, leading to a cautious market sentiment. Nonetheless, the long-term implications of this decision remain to be seen, as Axcella Health continues to strive towards its mission of revolutionizing the healthcare industry.
Axcella Health Inc.
Updated on: 19/09/2023
Debt to equity ratio: Strong Buy
Price to earnings ratio: Neutral
Price to book ratio: Strong Buy
DCF: Strong Buy
ROE: Strong Sell
8:00 PM (UTC)
Date:19 September, 2023
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Axcella Health Inc. (AXLA) Stock Performance Declines on September 19, 2023: Analysis and Forecast
On September 19, 2023, Axcella Health Inc. (AXLA) experienced a decline in its stock performance. The stock opened at $13.99, lower than the previous close of $15.00. Throughout the day, the stock traded within a range of $11.01 to $13.99. The trading volume for the day was 18,106 shares, significantly lower than the average volume of 732,950 shares over the past three months.
Axcella Health Inc. is a biotechnology company operating in the health technology sector. With a market capitalization of $45.2 million, the company has shown promising growth in earnings over the past year. In the previous year, their earnings grew by 11.92%, and in the current year, the growth rate has surged to 85.91%.
It is important to note that Axcella Health Inc. did not report any revenue growth for the last year. The company’s price-to-earnings (P/E) ratio is not available (NM), and the price-to-sales ratio and net profit margin are also not provided. The price-to-book ratio is 10.86, indicating that the stock may be trading at a premium compared to its book value.
On September 19, 2023, the stock showed a negative change of $0.01, representing a percentage change of -0.46%. This decline in stock price is in line with the performance of other companies in the biotechnology industry. Geron Corp (GERN), MorphoSys AG (MOR), Twist Bioscience Corporation (TWST), and Replimune Group Inc (REPL) also experienced negative changes in their stock prices on the same day.
Axcella Health Inc.’s next reporting date is scheduled for November 15, 2023. The earnings per share (EPS) forecast for this quarter is -$0.05. In the previous year, the company reported annual revenue of $0.00 and a net loss of -$81.2 million.
Despite the decline in stock performance on September 19, 2023, Axcella Health Inc. has shown significant earnings growth in recent years. However, the lack of revenue growth and the forecasted stagnant earnings growth for the next five years may raise concerns among investors. It is important for investors to closely monitor the company’s financial performance and future developments in the biotechnology industry before making any investment decisions.
Axcella Health Inc (AXLA) Stock Price Plummets -87.57%: Analysts Remain Cautious
On September 19, 2023, Axcella Health Inc (AXLA) experienced a significant decrease in its stock price. According to data from CNN Money, the 12-month price forecasts provided by one analyst for AXLA had a median target of $1.50, with both the high and low estimates also at $1.50. This median estimate represents a substantial decrease of -87.57% from the last recorded price of $12.07.
The consensus among one polled investment analyst is to hold stock in Axcella Health Inc. This rating has remained steady since July, when it was downgraded from a buy rating.
In terms of financial performance, Axcella Health Inc reported earnings per share of -$0.05 for the current quarter. This negative value suggests that the company experienced a loss during this period. Additionally, the company reported sales of $0.00, indicating a lack of revenue generation.
Investors should pay attention to the reporting date of November 15, as this is when Axcella Health Inc is expected to release its financial results for the current quarter.
Overall, based on the provided information, it appears that AXLA stock has experienced a significant decline in value. The lack of positive price forecasts and the hold rating from analysts may indicate a lack of confidence in the company’s future prospects. Investors should closely monitor the upcoming financial results release to gain a better understanding of Axcella Health Inc’s current financial situation and potential for future growth.