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How Does XBI Compare to Its 100-Day Moving Average?

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Nov. 20 2020, Updated 4:04 p.m. ET

Reviewing XBI

On April 20, 2016, the Market continued to rise and was supported by financial and energy stocks, which led the Dow Jones Industrial Average to rise by 0.2%. The SPDR S&P 500 ETF (SPY) remained in positive territory with a marginal gain of 0.1%. Biotechnology ETFs followed the trend and remained in line with the broader markets. The SPDR S&P Biotech ETF (XBI) rose marginally by 0.1% on the day.

The above chart indicates the price movements, moving averages, and returns at various intervals of XBI, SPY, and XBI, which were top performers on April 20, 2016. XBI closed at $56.32 and is trading close to its 100-day moving average, although its 100-day moving average has been falling. On January 4, 2016, XBI’s 100-day moving average was $70.20. By April 20, 2016, its 100-day moving average had fallen to $57.10. On a YTD (year-to-date) basis, the ETF has fallen by 19.8%, while SPY has risen 3.1%.

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Who were the big biotech gainers?

Kite Pharma (KITE), Alkermes (ALKS), BioMarin Pharmaceutical (BMRN), and Intrexon (XON) were the top gainers within XBI. These stocks rose by 6.1%, 3.7%, 3.4%, and 3%, respectively, on April 20. Kite Pharma was the biggest gainer as it presented the updated Phase 1 results from the Zuma-1 trial of KTE-C19 at the American Association for Cancer Research’s annual meeting. 

David Chang, Kite Pharma’s executive vice president, stated, “Today’s report affirms the early safety and efficacy profile of KTE-C19 in chemorefractory, aggressive NHL. We are encouraged by the ongoing complete remissions in patients with a significant unmet need for new therapies. We remain on track to provide interim data from the pivotal Phase 2 portion of the study later this year and to submit the KTE-C19 registration filing to the U.S. Food and Drug Administration (FDA) by the end of 2016.”

Kite Pharma closed at $48.98 on April 20 and was trading above its 20-day moving average with this gain. On a YTD basis, the stock has fallen 20.5%. Kite Pharma’s 52-week high is $89.84, and its 52-week low is $38.41. Kite Pharma’s book value is $12.65 per share. At this price, the stock is trading at a PBV (price-to-book value) multiple of ~3.9x. KITE has a weight of ~1.5% in XBI’s portfolio.

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