bluebird bio (NASDAQ:BLUE) Stock Price Down 13.4% - Should You Sell?

On Friday, shares of bluebird bio, Inc. (NASDAQ:BLUE - Get Free Report) experienced a significant decline, falling by 13.4%. The stock traded as low as $6.43 before recovering slightly to close at $6.58. During midday trading, the volume was 77,909 shares, which is a striking 80% lower than the average trading volume of 385,352 shares. The previous closing price stood at $7.60.

Analyst Price Targets

Recent assessments from various brokerages have led to updates on price targets for bluebird bio. Notably, Robert W. Baird reduced their target from $140.00 to $120.00 while maintaining an "outperform" rating. In contrast, Wells Fargo & Company lowered their price objective from $60.00 to $40.00, also giving it an "equal weight" rating. Meanwhile, JPMorgan Chase & Co. downgraded the stock from a "neutral" to an "underweight" rating.

StockNews.com has now initiated coverage with a "sell" rating on bluebird bio. Additionally, the Royal Bank of Canada opted to maintain a "sector perform" rating with a price target of $80.00. In total, three research analysts have assigned a sell rating, six analysts a hold rating, and two have recommended buying the stock, giving it an overall consensus rating of "Hold" and an average target price of $49.14 according to MarketBeat.

Stock Performance Analysis

Looking at bluebird bio's market performance, the company holds a market capitalization of approximately $1.26 billion. With a negative price-to-earnings (P/E) ratio of -3.52, its beta stands at 0.72, indicating lower volatility compared to the market. The company's financial ratios show a debt-to-equity ratio of 0.37, a current ratio of 0.51, and a quick ratio of 0.33. The fifty-day moving average is currently at $0.44, while the 200-day moving average is at $0.71.

On September 13, bluebird bio released its quarterly earnings, reporting a loss of ($7.20) per share. The company's return on equity was notably negative at 322.46%, and it experienced a net margin loss of 565.74%. Revenue for the quarter amounted to $18.57 million. Analysts predict that the company's earnings per share for the fiscal year will remain negative at -1.35.

Institutional Investor Activity

A number of institutional investors have recently adjusted their positions in bluebird bio. AQR Capital Management LLC increased its holdings by a whopping 315.3% in the second quarter, now owning 1,334,519 shares valued at roughly $1,223,000. BNP Paribas Financial Markets also significantly raised its stake by 2,270.2% in the third quarter, acquiring 371,224 shares worth $193,000.

FMR LLC, Barclays PLC, and Geode Capital Management LLC have also boosted their stakes in the company in the same quarter, evidencing ongoing interest from institutional investors. In total, institutional shareholders now control 87.43% of bluebird bio's stock, underscoring significant backing from major financial institutions.

Company Overview

bluebird bio is a biotechnology firm that focuses on researching, developing, and commercializing gene therapies aimed at treating severe genetic diseases. Their pipeline includes treatments such as ZYNTEGLO (betibeglogene autotemcel) for transfusion-dependent ß-thalassemia, lovotibeglogene autotemcel for sickle cell disease, and SKYSONA (elivaldogene autotemcel) targeted at cerebral adrenoleukodystrophy.

Final Thoughts

With a current "Hold" rating and various analysts' predictions, investors need to evaluate whether to sell their shares in bluebird bio at this time. While some see potential for recovery, others recommend caution. The ongoing developments in the company, including institutional investment activity and market volatility, will play a crucial role in determining future stock performance.

This article was crafted using reliable financial data and research insights.

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