Does Exelixis Inc. (EXEL) offer a good opportunity for investors?

Exelixis Inc. (NASDAQ: EXEL) stock fell -0.42% on Friday to $21.40 against a previous-day closing price of $21.49. With 1.46 million shares changed hands, the volume of the stock remained lighter than its average volume of 2.84 million shares. During the session, the Biotechnology company that operates in wider Healthcare sector, reached to the highest price of $21.98 whereas the lowest price it dropped to was $21.38. The 52-week range on EXEL shows that it touched its highest point at $23.40 and its lowest point at $15.50 during that stretch. It currently has a 1-year price target of $27.38. Beta for the stock currently stands at 0.61.

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Price Performance and Earnings:

Stock performance is one of the indicators that investors use to determine whether they will profit from a stock. The price performance of EXEL was up-trending over the past week, with a rise of 0.52%, but this was down by -3.91% over a month. Three-month performance dropped to -5.23% while six-month performance rose 16.18%. The stock gained 26.10% in the past year, while it has gained 17.07% so far this year. A look at the trailing 12-month EPS for EXEL yields 0.92 with Next year EPS estimates of 1.13. For the next quarter, that number is 0.19. This implies an EPS growth rate of 103.90% for this year and 27.92% for next year. EPS is expected to grow by 46.00% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 35.40%.

Float and Shares Shorts:

At present, 319.58 million EXEL shares are outstanding with a float of 314.36 million shares on hand for trading. On Jul 14, 2022, short shares totaled 9.97 million, which was 3.11% higher than short shares on Jun 14, 2022. In addition to Dr. Stelios Papadopoulos Ph.D. as the firm’s Co-Founder & Independent Chair of the Board, Dr. Michael M. Morrissey Ph.D. serves as its CEO, Pres & Director.

Institutional Ownership:

Through their ownership of 87.68% of EXEL’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 51.78% of EXEL, in contrast to 33.46% held by mutual funds. Shares owned by individuals account for 3.32%. As the largest shareholder in EXEL with 9.30% of the stake, The Vanguard Group, Inc. holds 29,838,551 shares worth 29,838,551. A second-largest stockholder of EXEL, BlackRock Fund Advisors, holds 29,095,307 shares, controlling over 9.07% of the firm’s shares. Renaissance Technologies LLC is the third largest shareholder in EXEL, holding 16,862,278 shares or 5.26% stake. With a 2.94% stake in EXEL, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 9,435,071 shares are owned by the mutual fund manager. The iShares Core S&P Mid Cap ETF, which owns about 2.88% of EXEL stock, is the second-largest Mutual Fund holder. It holds 9,245,188 shares valued at 192.48 million. Vanguard Small Cap Index Fund holds 2.53% of the stake in EXEL, owning 8,098,835 shares worth 168.62 million.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Mar 30, 2022, EXEL reported revenue of $355.98M and operating income of $83.24M. Over the past year, revenue came in at $1.52B while operating income stood at $374.52M. It generated $68.57M net income for the quarter, which came to $298.04M over the last twelve months. The EBITDA in the recently reported quarter was $87.73M and diluted EPS was $0.21. EBITDA for the full year was $389.41M.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for EXEL since 14 analysts follow the stock currently. There are 10 analysts who recommend BUY ratings, while 1 suggest SELL ratings. Of the remaining analysts, 2 believe that the stock is worth HOLDING, 1 give it an OVERWEIGHT rating, and 0 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With EXEL analysts setting a high price target of $35.00 and a low target of $18.00, the average target price over the next 12 months is $27.38. Based on these targets, EXEL could surge 63.55% to reach the target high and fall by -15.89% to reach the target low. Reaching the average price target will result in a growth of 27.94% from current levels.

EPS: Estimates vs Actual

It is also common to use earnings estimates to evaluate a firm’s growth potential and to determine trading strategy. EXEL will report FY 2022 earnings on 02/27/2023. Analysts have provided yearly estimates in a range of $1.19 being high and $0.72 being low. For EXEL, this leads to a yearly average estimate of $0.89. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Exelixis Inc. surprised analysts by $0.07 when it reported $0.21 EPS against a consensus estimate of $0.14. The surprise factor in the prior quarter was $0.20. Based on analyst estimates, the high estimate for the next quarter is $0.26 and the low estimate is $0.10. The average estimate for the next quarter is thus $0.19.

Summary of Insider Activity:

Insiders traded EXEL stock several times over the past three months with 8 Buys and 7 Sells. In these transactions, 158,235 shares were bought while 90,451 shares were sold. The number of buy transactions has increased to 41 while that of sell transactions has risen to 68 over the past year. The total number of shares bought during that period was 2,058,218 while 1,644,491 shares were sold.

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