Bluebird Bio (BLUE) AI Stock Analysis

• Market Cap: $40.73M
• Dividend Yield: N/A
• Average Volume (3M): 414.58K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.63
• Revenue Growth: 184.12%
• EPS Growth: 31.92%
• Country: US
• Employees: 248
• Sector: Healthcare
• Sector Strength: 69
• Industry: Biotechnology
• EPS (TTM): -24.86
• Shares Outstanding: 9,790,070
• 10 Day Avg. Volume: 175,570
• 30 Day Avg. Volume: 414,581
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.71
• Price to Cash Flow (P/CF): -0.10
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $6.00
• Price Target Upside: 44.23% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

Bluebird Bio's stock is facing significant challenges primarily due to its weak financial performance, which is reflected in negative profitability and a precarious balance sheet. Technical indicators also suggest a bearish trend, while the negative P/E ratio highlights valuation difficulties. These factors combine to present a high-risk profile for the stock with limited near-term upside potential.

Positive Factors

Cost Management

Cost reduction efforts should reduce operating expenses by 20% and allow for break-even to be achieved.

Privatization

The announced privatization of the company is expected to be completed within the first half of 2025.

Revenue Growth

A recent ramp in sales, driven by Lyfgenia uptake, leaves room for substantial future growth.

Negative Factors

Financial Challenges

Bluebird was reaching the end of its cash runway, unlikely to achieve near-term profitability from its ongoing commercial launches, and at risk of defaulting on its loan covenants.

Rating Downgrade

The company has been moved to a Neutral rating from Underweight, indicating less confidence in outperforming the market.

Revenue Decline

3Q24 revenue of $10.6mm was below the expected $21.1mm and continues to decline sequentially QoQ from $16.1mm in 2Q24 and $18.6mm in 1Q24.

Bluebird Bio Business Overview & Revenue Model

Company Description

Bluebird Bio, Inc. (BLUE) is a biotechnology company specializing in the development of gene therapies for severe genetic diseases and cancer. The company focuses on developing therapies that address the underlying genetic causes of these conditions, primarily through the use of lentiviral-based gene therapies. Bluebird Bio's core products are designed to treat conditions such as beta-thalassemia, sickle cell disease, and cerebral adrenoleukodystrophy.

How the Company Makes Money

Bluebird Bio makes money through the development and commercialization of its gene therapy products. Revenue streams primarily include sales from its approved gene therapies and collaborative agreements with other biotechnology and pharmaceutical companies. The company generates income by selling its therapies to healthcare providers and through milestone payments and royalties from partnerships with other organizations focused on developing and commercializing gene therapy solutions. Significant factors contributing to its earnings include regulatory approvals, successful clinical trial outcomes, and the establishment of strategic partnerships to expand the reach and application of its therapies.

Bluebird Bio Financial Statement Overview

Summary

Bluebird Bio is facing substantial financial hurdles across all major financial statements. The income statement shows consistent losses, the balance sheet indicates a precarious financial position with negative equity, and cash flow challenges persist. These factors combined highlight significant risks and the need for strategic financial restructuring.

Income Statement

Bluebird Bio's income statement reveals significant challenges, particularly with its profitability. The company has a persistently negative gross profit margin, net profit margin, and EBIT margin over the years, indicating an inability to generate profit from operations. Despite recent revenue growth, the net income remains deeply negative, reflecting ongoing losses.

Balance Sheet

The balance sheet shows a concerning financial position with negative stockholders' equity, indicating liabilities exceed assets, a significant risk factor. The debt-to-equity ratio is not meaningful due to negative equity but highlights financial instability. The equity ratio is negative, suggesting high leverage and potential solvency issues.

Cash Flow

The cash flow statement indicates persistent negative operating and free cash flows, suggesting that the company is not generating enough cash to cover its expenses. While financing activities have provided some relief, the negative free cash flow to net income ratio reflects ongoing financial challenges.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
53.12M	83.81M	29.50M	3.60M	3.66M	250.73M
	Gross Profit
-23.10M	-5.57M	-4.03M	-6.48M	-35.20M	245.34M
	EBIT
-316.68M	-270.46M	-244.26M	-287.09M	-590.91M	-629.51M
	EBITDA
-128.23M	-270.46M	-167.16M	-215.56M	-556.93M	-553.63M
	Net Income Common Stockholders
-300.52M	-240.72M	-211.91M	-266.58M	-562.64M	-618.70M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
131.84M	62.30M	221.75M	181.74M	396.62M	1.27B
	Total Assets
137.46M	460.23M	619.16M	554.90M	593.79M	1.78B
	Total Debt
0.00	283.36M	330.33M	281.39M	89.58M	193.02M
	Net Debt
-131.84M	221.06M	108.57M	168.38M	-71.58M	-124.68M
	Total Liabilities
78.96M	491.77M	424.62M	358.56M	219.52M	426.20M
	Stockholders Equity
58.50M	-31.53M	194.54M	196.34M	374.28M	1.36B
Cash Flow		Free Cash Flow
-231.02M	-262.62M	-244.10M	-366.16M	-658.64M	-499.34M
	Operating Cash Flow
-223.69M	-260.02M	-235.05M	-352.95M	-635.64M	-470.35M
	Investing Cash Flow
5.22M	3.90M	154.95M	250.45M	562.56M	-84.34M
	Financing Cash Flow
118.76M	87.47M	196.25M	54.25M	-93.95M	546.72M

Bluebird Bio Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 4.16
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BLUE, the sentiment is Negative. The current price of 4.16 is below the 20-day moving average (MA) of 4.58, below the 50-day MA of 4.51, and below the 200-day MA of 9.77, indicating a bearish trend. The MACD of -0.13 indicates Positive momentum. The RSI at 44.46 is Neutral, neither overbought nor oversold. The STOCH value of 23.43 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for BLUE.

Bluebird Bio Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DTIL	56 Neutral	$55.87M	2.81	19.05%	―	40.98%	―
Sector *	51 Neutral	$5.32B	3.39	-40.26%	2.89%	17.93%	2.48%
RPTX	47 Neutral	$53.14M	―	-46.63%	―	4.58%	10.59%
IKNA	38 Underperform	$47.91M	―	-33.30%	―	-100.00%	37.59%
BLUE	37 Underperform	$40.73M	―	-295.35%	―	184.12%	31.92%
ACET	27 Underperform	$48.44M	―	-65.65%	―	―	59.75%
IMRX	24 Underperform	$52.18M	―	-92.51%	―	―	-7.78%

Bluebird Bio Corporate Events

Bluebird Bio Ends Sublease Agreement with Meta and Aventis

On February 13, 2025, Bluebird Bio and its partners, Aventis Inc. and Meta Platforms, agreed to terminate Bluebird Bio’s sublease and Meta’s sub-sublease of office space in Cambridge, Massachusetts. Following this termination, Meta will sublease the space directly from Aventis, while Bluebird Bio, which does not occupy the space, has no further involvement.