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ADMA Shares Gain on Big Sales, Earnings Wins

By:
Lucas Downey
Published: Aug 30, 2024, 15:59 GMT+00:00

ADMA Biologics, Inc. (ADMA) had huge revenue and earnings gains, leading to increased guidance.

Nasdaq, FX Empire

In this article:

The company manufactures, markets, and develops specialty biologics to treat patients at risk of infection. Its plasma-derived treatments help ease the suffering of immunocompromised patients in the U.S. and around the world.

Its second-quarter earnings report delivered big sales and earnings gains. ADMA grew revenue by 78% on a year-over-year basis (to $107.2 million) and posted per-share earnings of $0.32. Profits jumped to $57.5 million, good for a gross margin of 53.6% versus 27.8% the year prior. This all led to a fiscal 2024 guidance jump to more than $400 million, with net income bumped to more than $105 million.

It’s no wonder ADMA shares are up 281% this year – and they could rise more. MAPsignals data shows how Big Money investors are betting heavily on the forward picture of the stock.

Big Money Buying Up ADMA

Institutional volumes reveal plenty. Recently, ADMA has enjoyed strong investor demand, which we believe to be institutional support.

Each green bar signals unusually large volumes in ADMA shares. They reflect our proprietary inflow signal, pushing the stock higher:

Source: www.mapsignals.com

Plenty of health care names are under accumulation right now. But there’s a powerful fundamental story happening with ADMA.

ADMA Fundamental Analysis

Institutional support and a healthy fundamental backdrop make this company worth investigating. As you can see, ADMA has had strong sales and earnings growth:

  • 3-year sales growth rate (+83.2%)
  • 3-year EPS growth rate (+46.3%)

Source: FactSet

Also, EPS is estimated to ramp higher this year by +35.8%.

Now it makes sense why the stock has been powering to new heights. ADMA has a track record of strong financial performance.

Marrying great fundamentals with our proprietary software has found some big winning stocks over the long term.

ADMA has been a top-rated stock at MAPsignals. That means the stock has unusual buy pressure and growing fundamentals. We have a ranking process that showcases stocks like this on a weekly basis.

It’s made the rare Top 20 report multiple times in the last year. The blue bars below show when ADMA was a top pick…making shares rise:

Source: www.mapsignals.com

Tracking unusual volumes reveals the power of money flows.

This is a trait that most outlier stocks exhibit…the best of the best. Big Money demand drives stocks upward.

ADMA Price Prediction

The ADMA rally isn’t new at all. Big Money buying in the shares is signaling to take notice. Given the historical gains in share price and strong fundamentals, this stock could be worth a spot in a diversified portfolio.

Disclosure: the author holds no position in ADMA at the time of publication.

If you are a Registered Investment Advisor (RIA) or are a serious investor, take your investing to the next level, learn more about the MAPsignals process here.

About the Author

Lucas Downeycontributor

Lucas is a well-versed equity investor and educator. He currently is co-founder of research and analytics firm, MAPsignals.com, which focuses on finding outlier stocks by following the Big Money.

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