Abiomed, Inc (ABMD) is a leading medical devices business based in the US. Abiomed is listed on the NASDAQ and employs 1,536 staff. All prices are listed in US Dollars.
Since the stock market crash in March caused by coronavirus, Abiomed's share price has had significant positive movement.
Its last market close was $265.86, which is 37.28% up on its pre-crash value of $166.74 and 123.39% up on the lowest point reached during the March crash when the shares fell as low as $119.0101.
If you had bought $1,000 worth of Abiomed shares at the start of February 2020, those shares would have been worth $711.99 at the bottom of the March crash, and if you held on to them, then as of the last market close they'd be worth $1,430.33.
|52-week range||$130.01 - $319.19|
|50-day moving average||$297.5427|
|200-day moving average||$229.8621|
|Wall St. target price||$326.4|
|Dividend yield||N/A (0%)|
|Earnings per share (TTM)||$3.473|
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Valuing Abiomed stock is incredibly difficult, and any metric has to be viewed as part of a bigger picture of Abiomed's overall performance. However, analysts commonly use some key metrics to help gauge the value of a stock.
Abiomed's current share price divided by its per-share earnings (EPS) over a 12-month period gives a "trailing price/earnings ratio" of roughly 79x. In other words, Abiomed shares trade at around 79x recent earnings.
That's relatively high compared to, say, the trailing 12-month P/E ratio for the NASDAQ 100 at the end of 2019 (27.29). The high P/E ratio could mean that investors are optimistic about the outlook for the shares or simply that they're over-valued.
However, Abiomed's P/E ratio is best considered in relation to those of others within the medical devices industry or those of similar companies.
Abiomed's "price/earnings-to-growth ratio" can be calculated by dividing its P/E ratio by its growth – to give 2.75. A low ratio can be interpreted as meaning the shares offer better value, while a higher ratio can be interpreted as meaning the shares offer worse value.
The PEG ratio provides a broader view than just the P/E ratio, as it gives more insight into Abiomed's future profitability. By accounting for growth, it could also help you if you're comparing the share prices of multiple high-growth companies.
However, it's sensible to consider Abiomed's PEG ratio in relation to those of similar companies.
Abiomed's EBITDA (earnings before interest, taxes, depreciation and amortisation) is $244.9 million (£0.0 million).
The EBITDA is a measure of a Abiomed's overall financial performance and is widely used to measure a its profitability.
To put Abiomed's EBITDA into context you can compare it against that of similar companies.
|Revenue TTM||$798.1 million|
|Operating margin TTM||27.98%|
|Gross profit TTM||$689.6 million|
|Return on assets TTM||11.76%|
|Return on equity TTM||15.08%|
|Market capitalisation||$12.4 billion|
TTM: trailing 12 months
There are currently 2.2 million Abiomed shares held short by investors – that's known as Abiomed's "short interest". This figure is 1.2% down from 2.2 million last month.
There are a few different ways that this level of interest in shorting Abiomed shares can be evaluated.
Abiomed's "short interest ratio" (SIR) is the quantity of Abiomed shares currently shorted divided by the average quantity of Abiomed shares traded daily (recently around 298375.03467406). Abiomed's SIR currently stands at 7.21. In other words for every 100,000 Abiomed shares traded daily on the market, roughly 7210 shares are currently held short.
To gain some more context, you can compare Abiomed's short interest ratio against those of similar companies.
However Abiomed's short interest can also be evaluated against the total number of Abiomed shares, or, against the total number of tradable Abiomed shares (the shares that aren't held by "insiders" or major long-term shareholders – also known as the "float"). In this case Abiomed's short interest could be expressed as 0.05% of the outstanding shares (for every 100,000 Abiomed shares in existence, roughly 50 shares are currently held short) or 0.0548% of the tradable shares (for every 100,000 tradable Abiomed shares, roughly 55 shares are currently held short).
A SIR below 10% would generally be considered to indicate a fairly optimistic outlook for the share price, with fewer people currently willing to bet against Abiomed.
Find out more about how you can short Abiomed stock.
We're not expecting Abiomed to pay a dividend over the next 12 months. However, you can browse other dividend-paying shares in our guide.
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Abiomed's shares were split on a 2:1 basis on 2 October 2000. So if you had owned 1 share the day before before the split, the next day you'd have owned 2 shares. This wouldn't directly have changed the overall worth of your Abiomed shares – just the quantity. However, indirectly, the new 50% lower share price could have impacted the market appetite for Abiomed shares which in turn could have impacted Abiomed's share price.
Over the last 12 months, Abiomed's shares have ranged in value from as little as $130.01 up to $319.19. A popular way to gauge a stock's volatility is its "beta".
Beta is a measure of a share's volatility in relation to the market. The market (NASDAQ average) beta is 1, while Abiomed's is 1.1427. This would suggest that Abiomed's shares are a little bit more volatile than the average for this exchange and represent, relatively-speaking, a slightly higher risk (but potentially also market-beating returns).
To put Abiomed's beta into context you can compare it against those of similar companies.
Abiomed, Inc. engages in the research, development, and sale of medical devices to assist or replace the pumping function of the failing heart. It also provides a continuum of care to heart failure patients. The company offers Impella 2.5 catheter, a percutaneous micro heart pump with integrated motor and sensors for use in interventional cardiology; and Impella CP, a device used by interventional cardiologists to support patients in the cath lab and cardiac surgeons in the heart surgery suite. It also provides Impella 5.0 and Impella LD, which are percutaneous micro heart pumps with integrated motors and sensors for use primarily in the heart surgery suite; Impella RP, a percutaneous catheter-based axial flow pump; Impella SmartAssist platform that includes optical sensor technology for improved pump positioning and the use of algorithms that enable improved native heart assessment during the weaning process; and Impella Connect, a cloud-based technology that enables secure, cloud-based, and remote viewing of the Automated Impella Controller for physicians and hospital staffs. In addition, the company engages in the development of Impella XR Sheath, a sheath designed to expand and recoil to all for ease of use upon insertion of an Impella heart pump and minimize the size of the arteriotomy; Impella BTR, a percutaneous micro heart pumps with integrated motors and sensors; and Impella ECP pump that is designed for blood flow of greater than three liters per minute. It sells its products through direct sales and clinical support personnel in the United States, Canada, Europe, and Asia. The company was founded in 1981 and is headquartered in Danvers, Massachusetts.
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