Bluebird Bio (BLUE) Crashes After Announcing New Share Issue

By Tamara Parker • Wednesday, January 18 12:13 • Permanent Link

As reported by Barrons's: "Bluebird Bio stock is sinking early Wednesday after the biotech announced a proposed public offering of 20 million shares. In a press release Wednesday, Bluebird ( ticker: BLUE ) said it also plans to give underwriters a 30-day option to purchase three million more shares." For more coverage, read the full article here. On the back of this news, bluebird bio sank -9.7% to a price of $6.58.

bluebird bio, Inc., a biotechnology company, researches, develops, and commercializes transformative gene therapies for severe genetic diseases. The company belongs to the Healthcare sector, which has an average price to earnings (P/E) ratio of 13.21 and an average price to book (P/B) ratio of 4.07. In contrast, bluebird bio has a trailing 12 month P/E ratio of -0.7 and a P/B ratio of 0.3.

At today's price of $6.58 per share, bluebird bio is -13.03% away from its target price of $7.56, and on average, analysts give the stock a rating of hold. 39.9% of the company's shares are linked to short positions, and 82.2% of the shares are owned by institutional investors.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.