MediciNova, Inc. (MNOV) Failing To Spot These Facts

It has been reported that multiple insider activity took place at MediciNova, Inc. (MNOV). Director Ishizaka Yoshio acquired 5,000 shares for $15,000 in transaction occurred on 2017/08/21. After making this transaction, Director owns a direct stake of 151 shares, worth $194,400, as per the last closing price. On 2017/05/15 Kobayashi Yutaka, Director at MNOV, purchased 1,000 shares at an average price of $5.6 per share. The new stake is valued at $1,384,128.

Director, Kobayashi Yutaka had invested in 24,000 shares for $105,800 through a trade on 2017/05/12. Following this activity, the insider holds 131 shares worth $1,371,168 as of recent close.

iShares Russell 2000 ETF revealed as top hedge fund owner in MediciNova, Inc. (MNOV) with a stake of over 860,401 MNOV shares as of March 30, with a market value of approx. $7.12M as of today. The second largest holder, Vanguard Total Stock Market Index Fund, with 831085 shares which equates to $10.38M worth of the stock. At third is Vanguard Extended Market Index Fund, which stood pat with 517768 shares, a 1.24% position in MediciNova, Inc., worth $6.47M. The insider holding in stood at 4.2% while institutions hold 21.6%.

MediciNova, Inc. (NASDAQ:MNOV) rose 1.09% in recent trade and currently has a stock-market value of $522.29M. The shares finished at $12.96, after trading as low as $12.75 earlier in the session. It hit an intraday high Wednesday at $12.99. Trading activity significantly weakened as the volume at ready counter decreased to 85,260 shares versus 157,000 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 79,262 shares. The stock is now 94.01% above against its bear-market low of $6.68 on February 14, 2019. It has retreated -0.31% since it’s 52-week high of $13 reached in May. Now the market price is up 25.58% on the year and up 58.63% YTD.

MNOV stock’s 50 day simple moving average (SMA 50) price is $9.96 and its 200-day simple moving average (SMA 200) price is $9.88. The company’s stock currently has a total float of 38.72M shares. Its weekly volatility is hovering around 3.02% and felt 4.7% volatility in price over a month. On the upside, the share price will test short term resistance at around $13.05. On a downside, the stock is likely to find some support, which begins at $12.81. The failure to get near-term support could push it to $12.66.

It had seen a new analyst call from B. Riley FBR, which initiated the stock at Buy on March 25. Analysts at B. Riley FBR, Inc., started covering the stock on March 28 with a Buy rating. Analysts at Credit Suisse, made their first call about the stock on April 18, recommending it is Outperform. Ladenburg Thalmann, reiterated their call for Buy, on January 04. On the other hand, they had set new target price to $6 versus $10.50.

Also, it is trading at rather expensive levels at just over 7.32x price/book and 0x price/sales. MNOV’s ROE is -20%, which is also considerably worse than the industry’s ROE of 10.06%. It’s also very liquid in the near term, with a current ratio of 46.4. The stock has a debt/capital of 0.

Shares of MNOV have gained 15.5% since the company’s most recent earnings report. Over the past 7 fiscal quarters, MediciNova, Inc. (NASDAQ:MNOV) has topped consensus earnings estimates in 4 quarters (33%), missed earnings in 3 quarters (25%), whereas at 0 occasion EPS met analyst expectations. For this quarter, Wall Street analysts forecast revenue in a range of $0 to $0, which should be compared with $0 generated last year. EPS is seen in a range of -$14.36 to -$14.36, against the 0 reported a year ago.