PDL BioPharma Inc. [NASDAQ: PDLI] stock went on an upward path that rose over 5.20% on Monday, amounting to a one-week price increase of more than 3.14%. The company report on December 14, 2020 that PDL BioPharma Enters into $51.4 Million Capital Provision Agreement with Epps Investments LLC Regarding PDL’s Previously Announced Settlement Agreement with Wellstat.
PDL BioPharma, Inc. (“PDL” or the “Company”) (Nasdaq: PDLI) announces it has entered into a Capital Provision Agreement (the “Agreement”) with Epps Investments LLC (“Epps”). Under the terms of the Agreement, Epps will pay PDL $51,391,184 no later than December 31, 2020, in exchange for 100% of the payments or other property or value received by PDL on or after the date of the Agreement pursuant to the settlement agreement (the “Settlement Agreement”) with related entities of Defined Diagnostics, LLC (f/k/a Wellstat Diagnostics, LLC) (“Wellstat Diagnostics”) announced August 12, 2020, and the underlying claims resolved by the Settlement Agreement. The Settlement Agreement resolved previously reported litigation relating to loans made to Wellstat Diagnostics by PDL. PDL has agreed to reimburse Epps for certain of its expenses related to the Agreement.
Pursuant to the Agreement, PDL will also grant to Epps a security interest in PDL’s interest in certain collateral, including the Settlement Agreement and the underlying claims resolved by the Settlement Agreement, as security for the payment of the Company’s obligations under the Agreement. Additionally, if the required payments under the Settlement Agreement are not made to PDL in accordance with the terms of the Settlement Agreement by July 26, 2021, PDL has agreed to assign its rights and obligations under the Settlement Agreement, and the underlying claims resolved by the Settlement Agreement, to Epps.
Over the last 12 months, PDLI stock rose by 1.88%. The one-year PDL BioPharma Inc. stock forecast points to a potential downside of -5.2.
The market cap for the stock reached $298.03 million, with 113.32 million shares outstanding and 110.60 million shares in the current float. Compared to the average trading volume of 1.29M shares, PDLI stock reached a trading volume of 4034883 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 0.09, with the Price to Sales ratio for PDLI stock in the period of the last 12 months amounting to 6.22. The Price to Book ratio for the last quarter was 0.71.
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 3.14. With this latest performance, PDLI shares gained by 14.35% in over the last four-week period, additionally sinking by -13.10% over the last 6 months – not to mention a rise of 1.88% 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 63.48, with the RSI for the last a single of trading hit 66.04, and the three-weeks RSI is set at 57.10 for PDL BioPharma Inc. [PDLI]. The present Moving Average for the last 50 days of trading for this stock 2.37, while it was recorded at 2.53 for the last single week of trading, and 2.95 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.
PDLI Stock EPS
With the latest financial reports released by the company, PDL BioPharma Inc. posted -0.48/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 -1,060.00%. 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 $259 million, or 87.50% of PDLI stock, in the hands of institutional investors. The top three institutional holders of PDLI stocks are: BLACKROCK INC. with ownership of 9,813,602, which is approximately -1.489% of the company’s market cap and around 1.10% of the total institutional ownership; DIMENSIONAL FUND ADVISORS LP, holding 9,318,552 shares of the stock with an approximate value of $24.51 million in PDLI stocks shares; and PARK WEST ASSET MANAGEMENT LLC, currently with $24.13 million in PDLI stock with ownership of nearly New of the company’s market capitalization.
Positions in PDL BioPharma Inc. stocks held by institutional investors increased at the end of November and at the time of the November reporting period, where 52 institutional holders increased their position in PDL BioPharma Inc. [NASDAQ:PDLI] by around 17,423,370 shares. Additionally, 78 investors decreased positions by around 15,081,453 shares, while 33 investors held positions by with 65,923,284 shares. The mentioned changes placed institutional holdings at 98,428,107 shares, according to the latest SEC report filing. PDLI stock had 23 new institutional investments in for a total of 10,263,871 shares, while 28 institutional investors sold positions of 4,821,981 shares during the same period.