XBI mid-caps see selling pressure
Given selling pressures, the mid-cap stocks of the SPDR S&P Biotech ETF (XBI) went down marginally and lost 0.4% on March 16, 2016. XBI has 18 mid-cap stocks in its portfolio. Out of 18 stocks, eight stocks advanced while ten stocks declined. Mid-cap stocks account for ~28% of XBI’s portfolio.
The above graph reflects the performances of XBI’s mid-cap stocks in comparison with the SPDR S&P 500 ETF (SPY). Since March 8–16, 2016, the mid-cap stocks of XBI have collectively returned -8.6% while SPY has returned ~1.5%, indicating that XBI mid-caps have underperformed the broader market in a large way.
XBI’s best and worst YTD mid-cap performers
As of March 16, 2016, out of 18 mid-cap stocks, only Opko Health (OPK) and Intrexon (XON) have had positive YTD (year-to-date) returns. Opko has a YTD return of 1.8% while Intrexon’s YTD return stood at an impressive 14.5%.
Intrexon has a book value of $5.95 per share. With its current price, the stock is trading at a PBV (price-to-book value) of 5.8x. However, Opko’s book value is relatively lower, at $3.63 per share. At its current price, Opko is trading at a price-to-book value of ~2.8x which is lower than Intrexon, but then Opko has a bigger market cap—$5.5 billion, compared to Intrexon’s $4 billion. Opko and Intrexon account for 1.7% and 2.1%, respectively, of XBI’s portfolio.
On the other side, the worst YTD mid-cap performers of XBI were Alkermes (ALKS) and Ultragenyx Pharmaceuticals (RARE), with a YTD return of -63.4% and -52.4%, respectively, as of March 16. The book value of Alkermes and Ultragenyx are $8.72 and $13.66 per share, respectively. At their current prices, these stocks are trading at PBVs of ~3.3x and 3.9x, respectively. Alkermes and Ultragenyx have weights of 0.9% and 1.3%, respectively, in XBI.