Bluebird Story

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BLUE -- USA Stock  

USD 57.04  1.37  2.46%

Bluebird Bio is scheduled to announce its earnings tomorrow. The upcoming quarterly report is expected on the 6th of August 2020. Bluebird Bio Invested Capital Average is projected to increase significantly based on the last few years of reporting. The past year's Invested Capital Average was at 1.64 Billion. The current year Long Term Debt to Equity is expected to grow to 0.11, whereas Average Assets are forecasted to decline to about 1.6 B. As many baby boomers are still indifferent towards healthcare space, it makes sense to digest Bluebird Bio as a unique choice for millenniums. What exactly are Bluebird Bio shareholders getting in August?
Published over a month ago
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How much will Bluebird Bio owe in August?
This firm currently holds 200.34 M in liabilities with Debt to Equity (D/E) ratio of 0.18, which may suggest the entity is not taking enough advantage from borrowing. The company has a current ratio of 5.15, suggesting that it is liquid enough and is able to pay its financial obligations when due. Earning per share calculations of the firm is based on official Zacks consensus of 8 analysts regarding Bluebird Bio's future annual earnings. Given the historical accuracy of 94.65%, the future earnings per share of the company is estimated to be -12.12 with the lowest and highest values of -15.9 and -7.35, respectively. Please note that this consensus of annual earnings estimates for Bluebird Bio is an estimate of EPS before non-recurring items and including employee stock options expenses.
Bluebird Bio financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Bluebird Bio, including all of Bluebird Bio's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Bluebird Bio assets, the company is considered highly leveraged. Understanding the composition and structure of overall Bluebird Bio debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.

Understanding Bluebird Total Liabilities

Bluebird Bio liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Bluebird Bio has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Bluebird Bio balance sheet include debt obligations and money owed to different Bluebird Bio vendors, workers, and loan providers. Below is the chart of Bluebird short long-term liabilities accounts currently reported on its balance sheet.
You can use Bluebird Bio financial leverage analysis tool to get a better grip on understanding its financial position

How important is Bluebird Bio's Liquidity

Bluebird Bio financial leverage refers to using borrowed capital as a funding source to finance Bluebird Bio ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Bluebird Bio financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Bluebird Bio's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for Bluebird Bio, but it might be worth checking our own buy vs. sell analysis

Breaking down Bluebird Bio Further

The modest gains experienced by current holders of Bluebird Bio could raise concerns from shareholders as the firm closed today at a share price of 59.47 on 800,343 in volume. The company executives have been quite successful in maneuvering the stock at opportune times to take advantage of all market conditions in July. The stock standard deviation of daily returns for 30 days investing horizon is currently 3.55. The above-average risk is mostly attributed to market volatility and speculations regarding some of the upcoming earning calls from Bluebird Bio partners.

Liabilities Breakdown

241.2 M
Current Liabilities
176.9 M
Long-Term Liabilities
Total Liabilities477.36 Million
Current Liabilities241.23 Million
Long-Term Liabilities176.91 Million
Tax Liabilities620,053

Bluebird Bio has 81 percent chance to finish above $59 in August

Latest Risk Adjusted Performance is up to 0.08. Price may dip again. Bluebird Bio currently demonstrates below-verage downside deviation. It has Information Ratio of 0.02 and Jensen Alpha of 0.1. However, we do advice investors to further question Bluebird Bio expected returns to ensure all indicators are consistent with the current outlook about its relatively low value at risk.

Our Conclusion on Bluebird Bio

Although many other companies in the biotechnology industry are either recovering or due for a correction, Bluebird Bio may not be performing as strong as the other in terms of long-term growth potentials. With a relatively neutral outlook on the latest economy, it is better to hold off any trading of Bluebird as the current risk-reward utility is not appealing enough. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Bluebird Bio.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Bluebird Bio. Please refer to our Terms of Use for any information regarding our disclosure principles.

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