Rocketing to a price of $43.6 during today's evening trading session, shares of Immunovant are still -11.92% below their average target price of $49.5. Could there be more upside potential for the stock? Analysts are giving IMVT an average rating of buy and target prices ranging from $40.0 to $57.0 dollars per share.
For the greater market's outlook on the stock, we can use Immunovant's short interest as a proxy. The short interest represents the proportion of the float's shares that are tied to short positions, meaning that the investor believes the stock will decline in the future. Here, the stock's short interest is 9.9% which means the outlook is split.
Short selling involves borrowing shares and then selling them at current market prices. In the successful version of the strategy, the shares are purchased at a lower price at some time in the future. The investor then returns the shares to the lender, and keeps the profit made on the sell/buy transaction.
We can make inferences about the market sentiment surrounding Immunovant by analyzing its rate of institutional ownership. If institutions such as hedge funds and pension funds are the primary shareholders of a corporation, it most likely means that its shares are a good investment according to those institutions' analysts.
At 47.2%, the rate of institutional ownership is average, indicating that a sufficient number of institutions have concluded that it is a stable investment. Beware, however, that the rate of institutional ownership could also indicate an ongoing proxy battle or takeover attempt -- so you should also periodically check the news about a stock whose institutional ownership you are tracking.
In conclusion, we see mixed market sentiment regarding Immunovant because of an analyst consensus of some upside potential, a buy rating, an above average percentage of its shares sold short, and only a small number of institutional investors. At Market Inference, we believe that any investment decision should be preceded by an in-depth analysis of the company's fundamental values and a comparison with similar stocks.
Here's a snapshot of some important facts to keep in mind about IMVT:
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The stock has trailing 12 month earnings per share (EPS) of $-1.96
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Immunovant has a trailing 12 month Price to Earnings (P/E) ratio of -22.2 compared to the S&P 500 average of 15.97
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The company has a Price to Book (P/B) ratio of 22.76 in contrast to the S&P 500's average ratio of 2.95
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Immunovant is a Health Care company, and the sector average P/E and P/B ratios are 30.21 and 4.08 respectively
