EBS stock: buy or sell?

EBS stock price: $46.53 -1.23% At close on June 26th, 2019

Updated on:
June 26th, 2019

0

Emergent Biosolutions ended today at $46.53 and declined an ugly -1.23%.

Emergent BioSolutions Inc. focuses on the development, manufacture, and commercialization of medical countermeasures that address public health threats.

Should I buy EBS stock?

Make a decision about when to buy or sell stocks is one of the hardest parts of being a trader or investor. Trading strategies are meant for helping you in the decision process of what stocks to choose and when is the best time to buy them. At Stocks2.com, we use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.

None of our preferred buy setups matches with Emergent Biosolutions stock situation right now, hence this is not a suitable entry point.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This doesn't mean EBS will fall in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems.

Is Emergent Biosolutions stock a buy?

Everyday, hundreds of stock ratings are posted by financial analysts to indicate a particular stock's attractiveness. At Stocks2.com, we found 1 rating published for EBS stock in the last month.

Is EBS a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-5-10Wells Fargo & Con/aMarket Perform

EBS stock analysis

Daily outlook

Emergent Biosolutions closed today at $46.53 and declined an ugly -1.23%.

Shares of Emergent Biosolutions closed today at $46.53 and declined an ugly -1.23%. EBS shows a short term strength with several rising tops and rising bottoms. In the very short term, yesterday it marked a new bottom at $45.49 that should act a support if Emergent Biosolutions starts a trading flat base in the range of $45.49 - $47.96 Trading the long side, we should wait to a new breakout over $47.96 to find the next buy point. Since February when EBS stock price broke down the SMA200d line, it slid $-14.48 per share (-23.73%).

EBS stock chart (daily)

Weekly outlook

After boosting an amazing 6.45% in a week last week, Emergent Biosolutions closed this week at $46.53 and stayed steady a slightly fine 0.39%. By mid June EBS collapsed a dreadful -7.22% in just one week.

Since late February, when EBS stock price broke down the 40-weeks moving avarage line, it slid $-16.80 per share (-26.53%). Stocks below the 40w moving average line are usually not recommended for average traders. Far behind is the all-time high Emergent Biosolutions hit early December and since then the price is -37.03% below that top.

EBS stock chart (weekly)

EBS stock price history

EBS IPO was on November 15th, 2006 at $12.50 per share1. Since then, EBS stock surged a 272.20%, with a yearly average of 22.70%. If you had invested $1,000 in EBS stock in 2006, it would worth $2,722.00 today.

1: Adjusted price after possible price splits or reverse-splits.

EBS stock historical price chart

EBS stock reached all-time highs on December with a price of $73.89.

EBS stock price target is $61.00

Nobody can reliably foresee how stock prices may evolve in the future. However, banks and other financial institutions analysts, with the help of lots of data and algorithms do their best to predict the stock prices movement. You should not follow the analysts' EBS stock price predictions in the hope that they will be met as they may be wrong and not met. For the last 30 days we only found 1 price prediction for Emergent Biosolutions stock:
EBS stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-5-10Wells Fargo & CoLowers Targetn/a$61.00-
(in average)$0.00$61.000.0%

Financials and fundamental analysis

Earnings date and Earnings per Share

On February, Emergent Biosolutions reported its latest financial data, posting a wonderful climb for the Earnings per Share (EPS). Analyst were expecting $0.61 per share, but Emergent Biosolutions posted $0.75.
EBS earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q2-n/a0.09n/a
2017-Q32017-11-020.410.7378.0%
2017-Q42018-02-220.690.747.2%
2018-Q12018-05-030.3-0.03n/a
2018-Q22018-08-020.961.0711.5%
2018-Q32018-11-010.620.55-11.3%
2018-Q42019-02-210.610.7523.0%
2019-Q1-n/an/an/a
2019-Q2-n/an/an/a
2019-Q3-n/an/an/a

Annual financial results

Compared to 2017, last anual turnover report draw an exceptional gain of 39.49% to $782.40 million dollars. When comparing 2018 vs 2017, in contrary, profit margin (that is, the net income divided by revenues) fell a -6.71% to 8.01%.

EBS annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2013$313 M-$31 M10.0%-
2014$450 M43.93%$37 M8.2%17.99%
2015$523 M16.14%$63 M12.0%71.12%
2016$489 M-6.50%$52 M10.6%-17.65%
2017$561 M14.75%$83 M14.7%59.53%
2018$782 M39.49%$63 M8.0%-24.09%

Quarterly financial results

Emergent Biosolutions posted $270.73 M in sales for 2018-Q4, a 55.90% improvement compared to previous quarter. Reported quarter income marked $-3.48 M with a profit margin of -1.29%. Profit margin plunged a -13.35% compared to previous quarter when profit margin was 12.06%. When comparing sales to same quarter last year, Emergent Biosolutions sales marked a dazzling increase and rocketed a 39.69%.
EBS quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q2$101 M-$5 M4.6%-
2017-Q3$149 M48.29%$34 M22.5%626.21%
2017-Q4$194 M29.70%$34 M17.5%1.17%
2018-Q1$118 M-39.21%$-5 M-4.2%-114.46%
2018-Q2$220 M86.90%$50 M22.8%-1,121.68%
2018-Q3$174 M-21.14%$21 M12.1%-58.23%
2018-Q4$271 M55.90%$-3 M-1.3%-116.62%
2019-Q1$191 M-29.60%$-26 M-13.6%646.91%

Emergent Biosolutions ownership

When you are planning to invest in a stock, it's always worth to check its ownership structure.

Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For Emergent Biosolutions, 14.90% of all outstanding shares are owned by its staff.

Bearish positions for EBS stock account 0.00%, no big difference from last month.

For a better context understanding, the following table shows ownership data compared to other related stocks:

EBSCELGCMRXGSKMRK
Market cap$2.4 B$65.2 B$171.6 M$197.5 B$214.7 B
Total shares51.4 M705.3 M51.1 M4,920.0 M2,570.0 M
Float shares43.1 M703.3 M37.8 M2,440.0 M2,570.0 M
  - Institutional holdings (%)85.4%77.6%82.0%11.0%78.3%
  - Insider holdings (%)14.9%0.2%2.5%0.0%0.1%
Shares in short selling0.0%0.0%0.0%0.0%0.0%

EBS summary

Wednesday, June 26th, 2019
Open$47.10
Close$46.53
Day range$46.16 - $47.84
Previous close$47.11
Session gain-1.23%
Average true range$1.73
50d mov avg$46.93
100d mov avg$51.67
200d mov avg$57.73
Daily patternlb03a
Weekly pattern lt03a

Emergent Biosolutions performance

Stocks performance is always measured in comparision to the market or competitors and related stocks in the same industry. We compared Emergent Biosolutions against Celgene, Chimerix, GlaxoSmithKline, Merck, Pfizer, SIGA Technologies, Soligenix and XOMA in the following table:
Stock3m6m12m
EBSEmergent Biosolut...-7.90%-20.72%-7.84%
CELGCelgene-2.05%48.02%16.36%
CMRXChimerix60.00%31.25%-29.41%
GSKGlaxoSmithKline-2.74%8.11%4.83%
MRKMerck1.13%12.34%41.44%
PFEPfizer3.94%3.67%24.74%
SIGASIGA Technologies-9.65%-26.72%-8.59%
SNGXSoligenix-18.48%-15.73%-22.68%
XOMA 28.35%29.40%-23.90%

Emergent Biosolutions competitors

One check before trading any stock is to review a list of its competitors, in this case for Emergent Biosolutions. We chose 8 companies as Emergent Biosolutions competitors as they are in the same industry or have similar market objectives.