PDL BioPharma Inc. [NASDAQ: PDLI] stock went on an upward path that rose over 2.68% on Tuesday, amounting to a one-week price increase of more than 14.31%. The company report on August 12, 2020 that PDL BioPharma Enters Into Settlement Agreement with Wellstat.
PDL BioPharma, Inc. (“PDL” or the “Company”) (Nasdaq: PDLI) announces it has entered into a settlement agreement (the “Settlement Agreement”) with related entities of Defined Diagnostics, LLC (f/k/a Wellstat Diagnostics, LLC) (“Wellstat Diagnostics” and, together with such related entities, the “Wellstat Parties”) resolving previously reported litigation relating to loans made to Wellstat Diagnostics by PDL. The loans totaling $44,100,000 were made pursuant to a loan agreement between Wellstat Diagnostics and PDL dated August 2013, and the notes were carried on PDL’s balance sheet for $51,391,184 as of June 30, 2020.
Under the terms of the Settlement Agreement, the parties agreed that the Wellstat Parties would pay an amount of $7,500,000 upon the signing of the Agreement and either (1) $5,000,000 by February 10, 2021 and $55,000,000 by July 26, 2021; or (2) $67,500,000 by July 26, 2021. Further under the terms of the Agreement, upon payment of either $5,000,000 prior to April 21, 2021 or completion of the payment of $67,500,000 by July 26, 2021, the Company will transfer to Wellstat Diagnostics on an “as is” and “where is” basis certain assets currently owned by the Company which were obtained through the Company’s credit bid in 2017 for the assets of Wellstat Diagnostics. If the Wellstat Parties fail to make payment in full by July 26, 2021, the Company shall be authorized to record and confess judgment against the Wellstat Parties for an amount of $92,500,000 or such lesser amount as may be owed under the Agreement.
Over the last 12 months, PDLI stock rose by 75.15%.
The market cap for the stock reached $406.94 million, with 115.91 million shares outstanding and 110.14 million shares in the current float. Compared to the average trading volume of 1.16M shares, PDLI stock reached a trading volume of 2789457 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Guru’s Opinion on PDL BioPharma Inc. [PDLI]:
Piper Jaffray have made an estimate for PDL BioPharma Inc. shares, keeping their opinion on the stock as Overweight, with their previous recommendation back on December 22, 2016. While these analysts kept the previous recommendation, RBC Capital Mkts dropped their target price from $5 to $4. The new note on the price target was released on February 23, 2016, representing the official price target for PDL BioPharma Inc. stock. Previously, the target price had yet another drop from $6 to $5, while RBC Capital Mkts kept a Sector Perform rating on PDLI stock. On November 05, 2015, analysts decreased their price target for PDLI shares from 7 to 6.
The Average True Range (ATR) for PDL BioPharma Inc. is set at 0.14, with the Price to Sales ratio for PDLI stock in the period of the last 12 months amounting to 7.86. The Price to Book ratio for the last quarter was 1.00, with the Price to Cash per share for the same quarter was set at 0.94.
PDLI Stock Performance Analysis:
PDL BioPharma Inc. [PDLI] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 14.31. With this latest performance, PDLI shares gained by 18.79% in over the last four-week period, additionally plugging by 21.30% over the last 6 months – not to mention a rise of 75.15% in the past year of trading.
Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for PDLI stock in for the last two-week period is set at 67.76, with the RSI for the last a single of trading hit 72.13, and the three-weeks RSI is set at 64.16 for PDL BioPharma Inc. [PDLI]. The present Moving Average for the last 50 days of trading for this stock 3.10, while it was recorded at 3.42 for the last single week of trading, and 3.16 for the last 200 days.
Insight into PDL BioPharma Inc. Fundamentals:
Operating Margin for any stock indicates how profitable investing would be, and PDL BioPharma Inc. [PDLI] shares currently have an operating margin of -121.55 and a Gross Margin at -9.44. PDL BioPharma Inc.’s Net Margin is presently recorded at -128.59.
Return on Total Capital for PDLI is now -9.01, given the latest momentum, and Return on Invested Capital for the company is -9.54. Return on Equity for this stock declined to -10.64, with Return on Assets sitting at -8.38. When it comes to the capital structure of this company, PDL BioPharma Inc. [PDLI] has a Total Debt to Total Equity ratio set at 4.88. Additionally, PDLI Total Debt to Total Capital is recorded at 4.65, with Total Debt to Total Assets ending up at 4.04. Long-Term Debt to Equity for the company is recorded at 4.72, with the Long-Term Debt to Total Capital now at 4.50.
Reflecting on the efficiency of the workforce at the company, PDL BioPharma Inc. [PDLI] managed to generate an average of -$938,813 per employee. Receivables Turnover for the company is 0.70 with a Total Asset Turnover recorded at a value of 0.07.PDL BioPharma Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 13.30 and a Current Ratio set at 13.70.
PDLI Stock EPS
With the latest financial reports released by the company, PDL BioPharma Inc. posted -0.16/share EPS, while the average EPS was predicted by analysts to be reported at 0.05/share. When compared, the two values demonstrate that the company fail the estimates by a Surprise Factor of -420.00%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for PDLI. When it comes to the mentioned value, analysts are expecting to see the 5-year EPS growth rate for PDL BioPharma Inc. go to 14.00%.
PDL BioPharma Inc. [PDLI] Insider Position Details
There are presently around $348 million, or 84.60% of PDLI stock, in the hands of institutional investors. The top three institutional holders of PDLI stocks are: BLACKROCK INC. with ownership of 9,961,934, which is approximately 0.052% of the company’s market cap and around 3.55% of the total institutional ownership; DIMENSIONAL FUND ADVISORS LP, holding 9,603,719 shares of the stock with an approximate value of $34.91 million in PDLI stocks shares; and RENAISSANCE TECHNOLOGIES LLC, currently with $30.15 million in PDLI stock with ownership of nearly 0.86% of the company’s market capitalization.
Positions in PDL BioPharma Inc. stocks held by institutional investors increased at the end of August and at the time of the August reporting period, where 56 institutional holders increased their position in PDL BioPharma Inc. [NASDAQ:PDLI] by around 9,746,596 shares. Additionally, 63 investors decreased positions by around 5,817,126 shares, while 36 investors held positions by with 80,084,479 shares. The mentioned changes placed institutional holdings at 95,648,201 shares, according to the latest SEC report filing. PDLI stock had 20 new institutional investments in for a total of 2,259,544 shares, while 17 institutional investors sold positions of 791,462 shares during the same period.