Yahoo Finance XBI Mid-Caps: Seattle Genetics Rose Due to Higher Trading Volumes
Why Did XBI Outperform the Defensive Market on May 18?
Reviewing XBI mid-caps
On May 18, 2016, the mid-cap stocks of the SPDR S&P Biotech ETF (XBI) rose by 2.2% and outperformed the SPDR S&P 500 ETF (SPY). SPY didn’t move. XBI’s mid-cap stocks account for ~32.3% of XBI’s portfolio. As of May 18, 2016, XBI holds 17 mid-cap stocks in its portfolio. Among them, 15 stocks advanced and only two stocks declined from the previous day’s closing.
The above graph shows the daily changes in XBI mid-caps along with SPY and XBI. In May, until May 18, 2016, XBI’s mid-caps were up by 0.7%, SPY is down by 0.7%, and XBI is down by 0.9%.
Seattle Genetics gains on higher trading volumes
On May 18, 2016, Seattle Genetics SGEN) outperformed XBI’s other mid-cap stocks with a return of 6.1%. The stock moved up due to higher trading volumes with ~1.7 million shares being traded—compared to the three-month average trading volume of ~1.1 million shares per day. On a YTD (year-to-date) basis, the stock is down by 15.3%. The stock closed at $38.02. It was trading above the 20-day moving average price of $35.80. Seattle Genetic’s 52-week low is $26.0. Its 52-week high is $52.33. Seattle Genetics has a book value of $4.88 per share. At its current price, the stock is trading at a PBV (price-to-book value) of ~7.8x. Some of its other mid-cap peers like Juno Therapeutics (JUNO) and Acadia Pharmaceuticals (ACAD) are trading at a PBV of 3.3x and 8.2x, respectively.
On the other side, Myriad Genetics (MYGN) has been the underperformer. Its stock fell by 0.9%. It witnessed some selling pressure with trading volumes of 959,000 shares—compared to the three-month average trading volume of 850,000 shares per day. In a press release, Myriad Genetics announced that “it will present data from nine clinical studies with three different products at the 2016 American Society of Clinical Oncology annual meeting to be held June 3-7, 2016 in Chicago.” Myriad Genetics closed at $34.48. It was trading below the 20-day moving average of $35.82. On a YTD basis, the stock is down by 20.9%. As of May 18, 2016, the stock is trading at a 2016 forward price-to-earnings multiple of ~21.0x. Seattle Genetics has a book value of $10.94 per share. At its current price, the stock is trading at a PBV of ~3.2x. Seattle Genetics and Myriad Genetics have a weight of ~2% and 1.7%, respectively, in XBI.
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