Are Vir Biotechnology Inc. (NASDAQ:VIR) shares too expensive at this price?

As of close of business last night, Vir Biotechnology Inc.’s stock clocked out at $30.38, up 4.18% from its previous closing price of $29.16. In other words, the price has increased by $+1.22 from its previous closing price. On the day, 1047713 shares were traded. VIR stock price reached its highest trading level at $30.68 during the session, while it also had its lowest trading level at $29.09.

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Ratios:

To gain a deeper understanding of VIR’s stock, we examine its different ratios. It provided that stocks Price–to–Cash (P/C) ratio for the trailing twelve months (TTM) is standing at 1.68 whereas its Price-to-Free Cash Flow (P/FCF) for the term is 2.52. For the most recent quarter (mrq), Quick Ratio is recorded 7.80 and its Current Ratio is at 7.80. In the meantime, Its Debt-to-Equity ratio is 0.00 whereas as Long-Term Debt/Eq ratio is at 0.00.

Upgrades & Downgrades

In addition, analysts’ ratings and any changes thereto give investors an idea of the stock’s future direction. In the most recent recommendation for this company, SVB Leerink on September 14, 2022, initiated with a Outperform rating and assigned the stock a target price of $40.

On September 09, 2022, Morgan Stanley started tracking the stock assigning a Underweight rating and target price of $15.

Robert W. Baird Upgraded its Underperform to Neutral on March 03, 2022, whereas the target price for the stock was revised from $36 to $28.

Insider Transactions:

Investing in insider trades can also provide an investor with insight into how management views future stock prices. A recent insider transaction in this stock occurred on Jan 20 when SVF Endurance (Cayman) Ltd sold 144,358 shares for $27.41 per share. The transaction valued at 3,956,801 led to the insider holds 19,383,024 shares of the business.

SVF Endurance (Cayman) Ltd sold 69,839 shares of VIR for $1,854,610 on Jan 19. The 10% Owner now owns 19,527,382 shares after completing the transaction at $26.56 per share. On Jan 18, another insider, SVF Endurance (Cayman) Ltd, who serves as the 10% Owner of the company, sold 102,467 shares for $26.31 each. As a result, the insider received 2,696,409 and left with 19,597,221 shares of the company.

Valuation Measures:

As of this moment, Vir’s Price-to-Earnings (P/E) ratio for their current fiscal year is 3.57. The expected Price-to-Earnings-to-Growth (PEG) calculation for the next 5 years is 0.51. For the stock, the TTM Price-to-Sale (P/S) ratio is 1.66 while its Price-to-Book (P/B) ratio in mrq is 1.88.

Stock Price History:

Over the past 52 weeks, VIR has reached a high of $35.48, while it has fallen to a 52-week low of $18.05. The 50-Day Moving Average of the stock is 26.39, while the 200-Day Moving Average is calculated to be 24.58.

Shares Statistics:

It appears that VIR traded 822.59K shares on average per day over the past three months and 774.49k shares per day over the past ten days. A total of 132.73M shares are outstanding, with a floating share count of 115.10M. Insiders hold about 1.70% of the company’s shares, while institutions hold 76.10% stake in the company. Shares short for VIR as of Oct 13, 2022 were 4.22M with a Short Ratio of 4.15M, compared to 4.58M on Sep 14, 2022. Therefore, it implies a Short% of Shares Outstanding of 3.18% and a Short% of Float of 5.10%.

Earnings Estimates

As of right now, 10 analysts gave their recommendation on the stock of the company. On average, analysts expect EPS of -$0.18 for the current quarter, with a high estimate of $1.78 and a low estimate of -$1.19, while EPS last year was $0.82. The consensus estimate for the next quarter is -$0.75, with high estimates of $0.47 and low estimates of -$1.25.

Analysts are recommending an EPS of between $5.56 and $1.63 for the fiscal current year, implying an average EPS of $2.73. EPS for the following year is -$3.3, with 10 analysts recommending between -$1.25 and -$5.08.

Revenue Estimates

In the current quarter, 7 analysts expect revenue to total $178.24M. It ranges from a high estimate of $402.6M to a low estimate of $42M. As of the current estimate, Vir Biotechnology Inc.’s year-ago sales were $103.62M, an estimated increase of 72.00% from the year-ago figure. For the next quarter, 8 analysts are estimating revenue of $64.45M, a decrease of -92.10% less than the figure of $72.00% in the same quarter last year. There is a high estimate of $219.9M for the next quarter, whereas the lowest estimate is $2.4M.

A total of 9 analysts have provided revenue estimates for VIR’s current fiscal year. The highest revenue estimate was $1.81B, while the lowest revenue estimate was $1.19B, resulting in an average revenue estimate of $1.39B. In the same quarter a year ago, actual revenue was $1.1B, up 26.60% from the average estimate. Based on 9 analysts’ estimates, the company’s revenue will be $282.16M in the next fiscal year. The high estimate is $650.6M and the low estimate is $65.8M. The average revenue growth estimate for next year is down -79.70% from the average revenue estimate for this year.