Bluebird Story

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BLUE -- USA Stock  

USD 46.92  0.06  0.13%

Bluebird Bio is scheduled to announce its earnings tomorrow. The next earnings report is expected on the 16th of February 2021. 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 millenniums are trying to avoid healthcare space, it makes sense to digest Bluebird Bio a little further and try to understand its current market patterns. We will evaluate why recent Bluebird Bio price moves suggest a bounce in November.
Published over a month ago
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Will Bluebird Bio (NASDAQ:BLUE) debt increase in November 2020?
The company currently holds 195.52 M in liabilities with Debt to Equity (D/E) ratio of 0.12, which may suggest the entity is not taking enough advantage from borrowing. The firm shows a Beta (market volatility) of -0.639, which signifies possible diversification benefits within a given portfolio. Let's try to break down what Bluebird's beta means in this case. As returns on the market increase, returns on owning Bluebird Bio are expected to decrease at a much lower rate. During the bear market, Bluebird Bio is likely to outperform the market. Even though it is essential to pay attention to Bluebird Bio historical returns, it is always good to be careful when utilizing equity current trending patterns. Our philosophy towards foreseeing any stock's future performance is to check both, its past performance charts as well as the business as a whole, including all available technical indicators. Bluebird Bio exposes twenty-eight different technical indicators, which can help you to evaluate its performance. Bluebird Bio has an expected return of -0.27%. Please be advised to confirm Bluebird Bio semi variance, and the relationship between the maximum drawdown and accumulation distribution to decide if Bluebird Bio stock performance from the past will be repeated at some point in the near future.
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

Bluebird Bio reported the previous year's revenue of 239.66 M. Net Loss for the year was (653.46 M) with loss before overhead, payroll, taxes, and interest of (540.72 M).

Asset Breakdown

491.9 M
Assets Non Current
988 M
Current Assets
Total Assets1.48 Billion
Current Assets987.99 Million
Assets Non Current491.94 Million
Goodwill28.24 Million
Tax Assets620,053

Another setback for Bluebird Bio shareholders

Latest coefficient of variation is at -857.96. Bluebird Bio exhibits very low volatility with skewness of 0.54 and kurtosis of 0.92. However, we advise investors to further study Bluebird Bio technical indicators to make sure all market info is available and is reliable.

Our Takeaway on Bluebird Bio Investment

Although some 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. Taking everything into account, as of the 30th of October 2020, our research shows that Bluebird Bio is a rather very steady investment opportunity with a low chance of bankruptcy in the next two years. From a slightly different view, the entity currently appears to be undervalued. However, our present 30 days recommendation on the firm is Sell.

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 Achuva Shats 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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