XBI mid-cap overview
On March 23, 2016, the mid-cap stocks of the SPDR S&P Biotech ETF (XBI) saw some big selling and collectively tanked by 5.1%. Among the 18 mid-cap stocks that XBI holds in its portfolio, 17 declined and only one advanced. Notably, mid-caps represent ~30% of XBI’s portfolio. Stocks including Juno Therapeutics (JUNO), Acadia Pharmaceuticals (ACAD), Neurocrine Biosciences (NBIX), and Intrexon (XON) got pummelled, dropping by 9%, 10.6%, 7.3%, and 6.2%, respectively, on the day.
The above graph reflects the daily changes of XBI’s mid-caps compared with the SPDR S&P 500 ETF (SPY). Since March 8, XBI’s mid-caps have seen an average return of -5.3% while SPY has seen collective returns of 1.5%.
Juno Therapeutics and Acadia Pharmaceuticals: two serious horsewhippings
Juno Therapeutics and Acadia Pharmaceuticals took the heaviest walloping among XBI mid-caps, declining by 9% and 10.6%, respectively, on March 23. Juno Therapeutics closed at $36.84, below its 20-day moving average, and YTD (year-to-date), Juno Therapeutics has gone down by a shocking 16.2%, with a 52-week high and low range of $69.28–$22.37. It recorded a trading volume of ~1.5 million shares.
Still, the RSI (relative strength index) of the stock indicates that it’s neither overbought nor oversold. The book value of the stock is $13.91. At this price, the stock is trading at a price-to-book value of ~2.7x. Notably, Juno Therapeutics has a weight of ~1.6% in XBI’s portfolio.
Acadia Pharmaceuticals, by comparison, closed at $20.25 and traded just above its 20-day moving average price. Still, Acadia Pharmaceuticals has taken a huge smackdown in 2016, falling by 43.2% YTD. The stock’s 52-week high and low range is $51.99–$16.64. It has a book value of $1.96 per share, and at this price, the stock is trading at a price-to-book value of 10.3x. Acadia has a weight of ~1.2% in XBI’s portfolio.