Bluebird Bio (BLUE) AI Stock Analysis

• Market Cap: $48.67M
• Dividend Yield: N/A
• Average Volume (3M): 605.65K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.01
• Revenue Growth: 127.51%
• EPS Growth: 56.94%
• Country: US
• Employees: 248
• Sector: Healthcare
• Sector Strength: 41
• Industry: Biotechnology
• EPS (TTM): -2.98
• Shares Outstanding: 9,792,458
• 10 Day Avg. Volume: 1,493,188
• 30 Day Avg. Volume: 605,649
• PEG Ratio: <0.01
• Price to Book (P/B): -0.84
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -0.21
• Enterprise Value/Market Cap: 1.75
• Enterprise Value/Revenue: 0.29
• Enterprise Value/Gross Profit: 3.03
• Enterprise Value/Ebitda: -0.14
• 1Y Price Target: $6.50
• Price Target Upside: 30.52% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 3

Bluebird Bio's overall score reflects significant financial challenges, including unprofitable operations and negative equity. While technical analysis shows short-term momentum, long-term trends are less favorable. The negative P/E ratio underscores valuation concerns, and the lack of a dividend yield makes it less attractive for income investors.

Positive Factors

Operational Efficiency

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

Privatization Benefits

The announced privatization of the company is expected to be completed, potentially leading to a positive restructuring impact.

Sales Growth Potential

The company's portfolio is expected to reach over $600 million in annual sales, indicating substantial future growth opportunities.

Negative Factors

Financial Concerns

Bluebird was reaching the end of its cash runway, raising concerns about achieving near-term profitability and loan covenant defaults.

Market Confidence

The company has been moved to a Neutral rating from Underweight, reflecting less confidence in its market performance.

Revenue Decline

3Q24 revenue of $10.6mm was below the expected $21.1mm and continues to decline sequentially, indicating financial pressure.

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 faces significant financial challenges with unprofitable operations, negative equity, and continuous cash burn. Although revenue has seen a recent uptick, the company must address its operational inefficiencies and improve cash flow management to stabilize its financial position.

Income Statement

Bluebird Bio's revenue has shown significant volatility, with a recent increase to $103.9 million TTM. However, the company remains unprofitable with a net loss of $199.98 million TTM. The gross profit margin is positive but narrow at 27.1%, while the EBIT and EBITDA margins are heavily negative, indicating operational challenges.

Balance Sheet

The company's balance sheet is concerning, with negative stockholders' equity at -$57.87 million TTM, leading to a negative equity ratio. The debt-to-equity ratio cannot be calculated due to negative equity, highlighting financial instability. Total assets have been declining, indicating asset shrinkage.

Cash Flow

Operating cash flow remains deeply negative at -$228.79 million TTM. While free cash flow improved slightly, it is still negative, reflecting ongoing cash burn. The ratios of operating cash flow and free cash flow to net income are unhelpful due to negative figures, signaling cash flow management issues.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
103.95M	83.81M	29.50M	3.60M	3.66M	250.73M
	Gross Profit
28.19M	-5.57M	-4.03M	-6.48M	-35.20M	245.34M
	EBIT
-216.38M	-270.46M	-244.26M	-287.09M	-590.91M	-629.51M
	EBITDA
-132.74M	-156.82M	-167.16M	-215.56M	-556.93M	-553.63M
	Net Income Common Stockholders
-199.98M	-240.72M	-211.91M	-266.58M	-562.64M	-618.70M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
78.74M	62.30M	221.75M	181.74M	396.62M	1.27B
	Total Assets
295.96M	460.23M	619.16M	554.90M	593.79M	1.78B
	Total Debt
115.46M	358.24M	330.33M	281.39M	89.58M	193.02M
	Net Debt
36.71M	295.93M	108.57M	168.38M	-71.58M	-124.68M
	Total Liabilities
353.82M	491.77M	424.62M	358.56M	219.52M	426.20M
	Stockholders Equity
-57.87M	-31.53M	194.54M	196.34M	374.28M	1.36B
Cash Flow		Free Cash Flow
-230.47M	-262.62M	-244.10M	-366.16M	-658.64M	-499.34M
	Operating Cash Flow
-228.79M	-260.02M	-235.05M	-352.95M	-635.64M	-470.35M
	Investing Cash Flow
7.65M	3.90M	154.95M	250.45M	562.56M	-84.34M
	Financing Cash Flow
49.53M	87.47M	196.25M	54.25M	-93.95M	546.72M

Bluebird Bio Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 4.98
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For BLUE, the sentiment is Neutral. The current price of 4.98 is above the 20-day moving average (MA) of 4.12, above the 50-day MA of 4.23, and below the 200-day MA of 8.20, indicating a neutral trend. The MACD of 0.07 indicates Negative momentum. The RSI at 63.66 is Neutral, neither overbought nor oversold. The STOCH value of 99.07 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for BLUE.

Bluebird Bio Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DTIL	62 Neutral	$52.00M	2.40	-50.81%	―	-11.11%	79.74%
RPTX	53 Neutral	$57.47M	―	-71.64%	―	-98.90%	-177.17%
Sector *	52 Neutral	$5.19B	3.04	-44.64%	2.82%	16.45%	-0.53%
IKNA	41 Neutral	$44.69M	―	-30.49%	―	-100.00%	37.59%
BLUE	40 Underperform	$48.67M	―	-546.55%	―	127.51%	56.94%
ACET	27 Underperform	$58.37M	―	-55.83%	―	―	59.75%
IMRX	27 Underperform	$54.70M	―	-102.48%	―	―	-7.78%

Bluebird Bio Corporate Events

Bluebird Bio Amends Merger Agreement with Carlyle

On May 13, 2025, bluebird bio, Inc. amended its merger agreement with Carlyle and SK Capital Partners, offering stockholders a choice between $3.00 per share plus a contingent value right (CVR) of $6.84 or a revised offer of $5.00 per share. The bluebird board of directors recommends stockholders tender their shares to avoid potential financial risks, including defaulting on loan agreements with Hercules Capital. The tender offer deadline has been extended to May 29, 2025, with approximately 2,281,724 shares already tendered.

The most recent analyst rating on (BLUE) stock is a Hold with a $10.00 price target. To see the full list of analyst forecasts on Bluebird Bio stock, see the BLUE Stock Forecast page.

Spark’s Take on BLUE Stock

According to Spark, TipRanks’ AI Analyst, BLUE is a Underperform.

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.

To see Spark’s full report on BLUE stock, click here.

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.