Xoma Corp Story

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XOMA -- USA Stock  

USD 38.59  0.40  1.03%

Today we may see the proof that CSL would recover much slower from the current slide as its shares went up 0.13% to Xoma Corp's 20.4155%. As many rational traders are trying to avoid healthcare space, it makes sense to go over Xoma Corp a little further and understand how it stands against CSL and other similar entities. We are going to analyze some of the competitive aspects of both Xoma Corp and CSL.
Published over two weeks ago
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Will Xoma Corp (NASDAQ:XOMA) shadow CSL price jump?
By analyzing existing primary indicators between Xoma Corp and CSL, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in CSL with a short position in Xoma Corp. Check out our pair correlation module for more information.

Let's begin by analyzing the assets.
The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Xoma Corp has an asset utilization ratio of 119.03 percent. This suggests that the company is making $1.19 for each dollar of assets. An increasing asset utilization means that Xoma Corp is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two companies, such as Xoma Corp or Immunomedics is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

How important is Xoma Corp's Liquidity

Xoma Corp financial leverage refers to using borrowed capital as a funding source to finance Xoma Corp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Xoma Corp 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 Xoma Corp's total debt and its cash.

Correlation Between Xoma Corp and Immunomedics

In general, stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Xoma Corp together with similar or unrelated positions with a negative correlation. For example, you can also add Immunomedics to your portfolio. If Immunomedics is not perfectly correlated to Xoma Corp it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Xoma Corp for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down.
Please check pair correlation details between XOMA and IMMU for more information.

Xoma Corp exotic insider transaction detected

Legal trades by Xoma Corp insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Xoma Corp insider trading alert for general transaction of non-qualified stock option (right to buy) by Bvf Partners L P, the corporate stakeholder, on 2nd of April 2021. This event was filed by Xoma Corp with SEC on 2021-04-02. Statement of changes in beneficial ownership - SEC Form 4 [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Breaking it down

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Now, let's check Xoma Corp revenue. Based on the latest financial disclosure, Xoma Corp reported 29.39 M of revenue. This is 99.61% lower than that of the Healthcare sector and 96.04% lower than that of the Biotechnology industry. The revenue for all United States stocks is 99.69% higher than that of the firm. As for CSL we see revenue of 9.98 B, which is much higher than that of the Biotechnology

10 B
XOMA29.39 Million0.27
Sector742.91 Million6.91
CSLLY9.98 Billion92.82

Are Xoma Corp technical ratios showing a correction?

The coefficient of variation is down to -920.13 as of today. Xoma Corp exhibits very low volatility with skewness of 0.2 and kurtosis of 0.85. However, we advise investors to further study Xoma Corp technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Xoma Corp's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Xoma Corp's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Our Takeaway on Xoma Corp Investment

Whereas some firms in the biotechnology industry are either recovering or due for a correction, Xoma Corp may not be performing as strong as the other in terms of long-term growth potentials. Taking everything into account, as of the 27th of March 2021, our research shows that Xoma Corp is a rather not too volatile investment opportunity with a very high odds of financial distress in the next two years. From a slightly different view, the entity currently appears to be fairly valued. Our ongoing 30 days buy-sell recommendation on the company is Hold.

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 Ellen Johnson do not own shares of Xoma Corp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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