Biotech ETFs Start December with Some Clear Winners and Losers
IBB’s American depositary receipts turn negative last week
The American Depository Receipts (or ADR) of the iShares Nasdaq Biotechnology ETF (IBB) had negative returns of 1% for the week ended December 4, 2015. IBB provides good exposure to international biotech stocks. Currently, IBB holds 14 ADRs in its portfolio.
IBB underperformed the SPDR S&P 500 ETF (SPY) for the week with a return of 0.02%. IBB ADRs include stocks for Shire (SHPG), Grifols (GRFS), Endo International (ENDP), and Alkermes (ALKS), with returns of -2.2%, 1.1%, 0.6%, and -2.5% for the week ended December 4, 2015.
The above graph reflects the performance of IBB’s ADRs and SPY on a weekly basis. Since the week ended November 27, 2015, IBB’s ADRs have given a return of 3.3%, whereas SPY has returned 0.1% for the same period.
Prothena falls 12.8%
Prothena (PRTA) fell 12.8% for the week ended December 4, 2015. The stock fell on profit booking. PRTA closed at $65.68 and was trading 12.6% higher than the 100-day moving averages and 2.1% lower than the 20-day moving averages.
PRTA stock has an RSI (Relative Strength Index) of 52, indicating the stock is neither overbought nor oversold. The average trade for the week for PRTA stood at ~475,000 shares per day compared to the prior week’s average trade of ~284,000 shares per day. PRTA has a book value of $11.99 per share.
With its current price, PRTA stock is trading at a PBV (price-to-book value) of 5.48x compared to the ADR average of 5.14x. PRTA has a weight of 0.35% in IBB’s portfolio.
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