Analysts on the Street predict that BioDelivery Sciences International, Inc. (NASDAQ:BDSI) is going to report earnings of $-0.27 per share. This article will dive a bit deeper into how analysts make that prediction, and also look into how investors can use those predictions to make the decision to “buy” or “sell”. According to Zacks the actual earnings for BioDelivery Sciences International, Inc. (NASDAQ:BDSI) will be released on or around 2017-03-09.
So if you’re an investor, read this article to soak up some more information before the actual numbers are released. First and foremost, let’s look at the company’s most recent surprise factor. Recently BioDelivery Sciences International, Inc. recorded a surprise factor of -15.38% and an Earnings Per Share of $-0.04. These numbers are important for investors to see how the analyst’s rating compares.
How to sniff out a bad fish
The investment pond is full of fish. Some fish are brought to market and full of fresh predictions, while other fish have been behaving shadily and the smell is potent! Investors must beware of a little thing we like to call “conflict of interest”. This happens sometimes, specifically, with analysts if they have a relationship with a particular company. For example, let’s say an analyst is writing a report on Company X. What if Company X is a long-time client of this analyst’s employer – and what if the prediction is looking grim? Investors don’t always know if an analyst has a conflict of interest, but they might sniff it out if a prediction is overly optimistic.
According to Zacks, the standard deviation for BioDelivery Sciences International, Inc. (NASDAQ:BDSI) was $3.545. Analysts predict a price target range from $3 to $13 with a consensus target from the 7 analysts providing projections. The mean target is presently stands at $6.285. The mean target was last posted on 2016-11-21.
How to crack the investment code
Okay, so let’s not get too caught up in conspiracy theories – investors have to have a certain amount of trust and give analysts the benefit of a doubt. It is, after all, an analyst’s full time job to make the best predictions possible. It’s in their best interest so that investors continue to pay them to do all the research! If you’re new to the investment world, you should know that analysts make up 80% of their predictions on the balance sheet and cash flow alone. That information is available to anyone, including the investors.
So once the predictions are on the table, investors have the information they need to make informed decisions. Some investors might take the knowledge and choose to dump the stock (ahem, sell). Other investors might decide to buy more. No matter the decision, investors must take a risk and in order to get the best odds, they look towards something called the Average Brokerage Recommendation (short term ABR) to help with the decision making process.
More ways to make better investment decisions…
ABR is the average of a collection of analyst’s predictions on a particular stock’s equity. The average is based on a ranking system of 1 to 5. The number 1 represents a strong buy and 5 represents a strong sell recommendation. Right now BioDelivery Sciences International, Inc. (NASDAQ:BDSI) has shares with an ABR of 1.29. The ABR is calculated on the guidance of 7.
Invest wisely. This post was intended for informational purposes only and should not by any means be used as a decision maker for buying or selling BioDelivery Sciences International, Inc. (NASDAQ:BDSI).