Is INO Stock a Solid Long Term Investment?

stock market

INO Stock has made news features from investment and stock analysts since 2020. The early predictions put INO in a favorable position, suggesting it was a strong buy for long-term investors. The nature of the stock market can be unpredictable. In 2021, the stock saw its share of ups and downs with less favorable outlooks emerging in 2022. It’s nothing new for stocks to rise, fall, hold steady, and occasionally tank. The question that remains is INO stock a solid long-term investment? To answer the question we must first understand the nature of the company backing the stock, the history of the company, its current status, and where the stock stands in the market today. We may also gain valuable information by examining the external factors influencing the prices, along with the best guess on long-term projections for future trends. It’s a complicated process, but necessary for anyone considering a sizable investment in the market. The tides can turn in your favor or against you, but some analysts have been skilled at making accurate forecasts.

Company profile for Inovio

CNN Business reports that Inovio Pharmaceuticals is a publicly-traded organization with the ticker symbol INO. The business provides medicines used to treat and prevent infectious diseases. It engages in the design and provision of DNA based-treatments also used for treating and preventing human papillomavirus and cancer. The company launched on June 29, 1983. David B. Weiner is the founder of the Plymouth Meeting, Pennsylvania company. Inovio Pharmaceuticals has four products in its pipeline, including Pennvax-GP, INO-4800, INO-5410, INO 3107, and VGX-3100. The company employs slightly more than three hundred workers. It’s seen a steady increase in the workforce for the past five years.

Historical forecasts

Investorplace analysts reported their predictions based on the status of Inovio and its posturing in the market for vaccine development in August 2020. They presented a positive outlook for the prospects of Inovio’s positioning in the development of a vaccine for preventing Covid-19, calling them a frontrunner in the race. They assessed the INO 4800 candidate as one of many therapeutic drugs likely to succeed in the Inovio pipeline. This suggested that Inovio wasn’t putting all of its eggs into one basket. If one drug failed to succeed commercially, there were others with potential. They based their gamble on INO stock as a solid bet for long-term investment on these factors. It wasn’t an unreasonable assumption at the time. Investors looked at promising Covid-19 development as a positive for pharmaceutical companies. Inovo’s work in HPV drugs also held promise. It encouraged investors to place their bets on Inovio.

There were multiple factors suggesting INO stock would produce healthy returns. Positive interim results on INO 4800 with endorsement by the Bill and Melinda Gates Foundation and other wealthy investors made other private investors think twice about the wisdom of investing. Initial figures showed the potential for Inovio to generate $2 billion in revenue in 2021 and beyond. The assumption was based on everything following a positive trajectory, drug approval, vaccine reception from the public, and possibly government mandates for vaccination if it matched Pfizer’s accounting. The verdict at that time was a recommendation to buy INO stock with long-term investment in mind. They pointed out that Inovio’s asset base was stable and secure, Investors were putting more funds into the coffers and the demand for products under development was high and estimated to rise to greater levels. The stock was trading at a discount and it seemed the perfect time to buy into Inovio. They even discounted the Covid-19 vaccine and estimated that the HPV vaccine alone could carry the company forward.

Seeking Alpha contributed their opinions in September of 2021. They suggested that Inovio was a pharmaceutical company that should not be ignored. They offered that regardless of the number of vaccines under development, or even available, the unmet need was high and there was still plenty of room within the global picture. Inovio’s medication was listed as diverse for treating other conditions. Its cash position was adequate, despite its massive research and development spending, and the pipeline was stacked with high-potential candidates. They put Inovio’s DNA vaccine on the same plane as Zydus from Cadila Healthcare. Their recommendations were more of a wait and watch rather than buy, but there was an urgency not to forget about Inovio. Again, the bend was not a full endorsement, but it was nonetheless, positive. Forbes speculated in December of 2021 that a rise in Inovio Pharmaceuticals stock would surely come shortly, following a massive seventeen percent fall in thirty days. They predicted that INO Stock would experience an imminent rise just four months from the writing of this analysis. The stock dropped eight percent in a week. They attributed the loss to the INO 4800 vaccine’s status as being months away from approval. Suggestions that the Omicron variant’s mild impact also caused concern. Studies from the Science world suggested the most effective vaccines would come from Moderna and Pfizer. The notion that Inovio entered the game too late began to cross investors’ minds. Forbes’ information sources looked to the history of INO stock performance and speculated a high likelihood of INO stock rising within the next month. It was sound if you based your opinion on that factor alone. They defaulted to the previous pattern of INO stock performance. Their calculations accepted the previous ten years’ data for INO which showed rebounds after downturns occurring in increments of five days, ten days, and twenty-one days with percentages of increases ranging from 52 percent to 65 percent.

The other side of the coin

Investors.com gave their opinions in December of 2021. They looked at the fundamentals of INO Stock. Analysts pointed out that the company was not profitable. They observed that the sales margins missed the forecasts with a third-quarter loss of $292,000 in revenue. Shares dropped by 29 cents. Considering the company did not have a product approved for commercial sale on the market, its years of work on DNA projects with no yields presently, and the fact that it’s been around for years, the outlook was starting to dim from previous analyst assessments. They added that securing approval for an effective coronavirus vaccine would change the landscape and the outlook. Investment experts look at the total picture with a wary eye and advised readers that INO stock didn’t align with investor CAN SLIM rules. Inovio stock is not expected to reach the earnings growth required to make it a solid bet for long-term investment. Nasdaq suggests that INO stock may be a solid bet for bottom fishing, in its opinion in January of 2022. They joined other analysts in their prediction that stocks will rise and the potential of the company to report improved earnings is improving. They further posit that Zacks-ranked INO as a number two position to buy. They saw the potential for reversal.

INO Stock Drops

Yahoo’s Simply Wall Street reported on February 17, 2022, that stock for Inovio Pharmaceuticals dropped twelve percent. The damage to shareholders was seventy-eight percent over the past twelve months. It’s further broken down into fifty-three percent in a quarter. The tide is turning in opinion on the safety of investing in INO Stock for the long-term. Analysts remind investors that the current state of affairs is a reminder that it’s essential to diversify investments instead of placing too much into one stock or commodity. They note that revenue increased by 209 percent for the loss-making pharmaceutical. It’s a sign that investors are not taking the previous advisement of analysts predicting a rise in stock and the suggestions to buy. They further suggest that much will depend on what course of actions shareholders take. This is a situation that could lead to a sell-off if investors become stressed to the point of overreacting instead of riding it out.

Is INO Stock a solid long-term investment?

The Motley Fool named Inovio Pharmaceuticals as a stock to “avoid like the plague” for 2022. They offer the perspective that the prospects for the Covid-19 vaccine market are looking dimmer over time. The Fool’s analysts take a harsh approach to issue the stern warning that INO stock isn’t worth thinking twice about, even if the market were less volatile. They delve deeper than some other analysts to point out that the past two years have been difficult for Inovio Pharmaceuticals. Shares dropped to trading near the levels they experienced before the pandemic occurred. Inovio Pharmaceuticals continues to work on its INO 4800 vaccine. It’s entering into its phase 3 clinical trials. They hope to market the vaccine globally with promises to disclose more data later in 2022. Inovio is placing its bet on unmet needs in foreign countries. It has a long way to go, to prove that it’s a superior vaccine to catch up with its competitors. It’s hard to put faith in a candidate that has not yet established a scenario for meaningful success. The Fool further points out that the wide availability of proven drugs with approval represents stiff competition with their proven results. They’ve garnered the trust of at least some segments of the population. It could be next to impossible for Inovio to compete with a new vaccine that is yet unproven. The path to securing FDA approval could be long and drawn out. The launch date for commercialization is not yet determined. It doesn’t give investors much to go on when assessing the risk of loss. None of Inovio’s candidate drugs will reach marketability in 2022. It’s a biotech that has been in operation since 1983, and it has no marketable products at this time. Furthermore, there’s no guarantee of securing approval for any of its candidates in the current year. They encourage investors to stay away from INO stock for 2022.

What to make of the conflicting opinions?

You’re likely to find conflicting analyst opinions on almost any stock or investment option you research. The key to sorting the disparities in opinion is to make sure that you review the dates of the reports you’re reading. We used a chronological order of analyst feedback to establish a pattern, not make a case for a debate. Pay attention to the dates, who is talking, and what they’re basing their opinions on. It’s essential to have a complete picture of the scenario before forming opinions on the level of risk associated with a potential investment. We’ve tried to cover all the bases and present them in plain terms to avoid unnecessary rhetoric that is difficult for the average layperson to decipher. There’s not much of a debate over INO stock as of April 2022. It’s had a couple of rough years and all the optimism in the world doesn’t reverse the losses unless it brings a horde of investors into the mix.

Final thoughts

A pattern of hopefulness and positive forecasts developed as the Covid-19 pandemic took hold of the nation. Inovio Pharmaceuticals was eyed as a safe bet from 2020 through 2022. Analysts encouraged investors to buy in the company that had a promising new vaccine in the pipeline, and another to prevent HPV. All the hype over the possibilities and likelihoods faded as investors were wary of the scenario they saw unfolding before them. As INO stock had its ups and downs, some forecasters predicted a rebound, which didn’t happen. The outlook dimmed with each passing month and has faded into a stay-away suggestion from analysts at the Motley Fool. For 2022, the suggestion is to avoid investing in INO as a long-term stock.

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