Spectrum Pharmaceuticals Inc. (NASDAQ: SPPI) stock jumped 6.33% on Friday to $0.94 against a previous-day closing price of $0.88. With 1.82 million shares changed hands, the volume of the stock remained lighter than its average volume of 2.01 million shares. During the session, the Biotechnology company that operates in wider Healthcare sector, reached to the highest price of $0.9396 whereas the lowest price it dropped to was $0.8703. The 52-week range on SPPI shows that it touched its highest point at $3.26 and its lowest point at $0.60 during that stretch. It currently has a 1-year price target of $5.60. Beta for the stock currently stands at 2.05.
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 SPPI was up-trending over the past week, with a rise of 9.58%, but this was up by 15.83% over a month. Three-month performance surged to 3.97% while six-month performance rose 29.80%. The stock lost -70.11% in the past year, while it has lost -26.32% so far this year. A look at the trailing 12-month EPS for SPPI yields -0.87 with Next year EPS estimates of -0.13. For the next quarter, that number is -0.16. This implies an EPS growth rate of 25.70% for this year and 69.80% for next year.
Float and Shares Shorts:
At present, 169.74 million SPPI shares are outstanding with a float of 161.14 million shares on hand for trading. On Jul 14, 2022, short shares totaled 5.55 million, which was 3.08% higher than short shares on Jun 14, 2022. In addition to Mr. Thomas J. Riga as the firm’s Pres, CEO & Director, Ms. Nora E. Brennan serves as its Exec. VP & Chief Financial Officer.
Through their ownership of 40.32% of SPPI’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 5.35% of SPPI, in contrast to 29.19% held by mutual funds. Shares owned by individuals account for 10.52%. As the largest shareholder in SPPI with 9.49% of the stake, Armistice Capital LLC holds 17,100,000 shares worth 17,100,000. A second-largest stockholder of SPPI, BlackRock Fund Advisors, holds 12,817,131 shares, controlling over 7.12% of the firm’s shares. D. E. Shaw & Co. LP is the third largest shareholder in SPPI, holding 7,845,726 shares or 4.36% stake. With a 2.97% stake in SPPI, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 5,348,837 shares are owned by the mutual fund manager. The Vanguard Extended Market Index Fu, which owns about 1.22% of SPPI stock, is the second-largest Mutual Fund holder. It holds 2,191,617 shares valued at 1.71 million. iShares Biotechnology ETF holds 0.70% of the stake in SPPI, owning 1,263,548 shares worth 0.99 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for SPPI since 5 analysts follow the stock currently. There are 4 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 1 believe that the stock is worth HOLDING, 0 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 SPPI analysts setting a high price target of $10.00 and a low target of $3.00, the average target price over the next 12 months is $5.60. Based on these targets, SPPI could surge 963.83% to reach the target high and rise by 219.15% to reach the target low. Reaching the average price target will result in a growth of 495.74% 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. SPPI will report FY 2022 earnings on 03/08/2023. Analysts have provided yearly estimates in a range of -$0.37 being high and -$0.62 being low. For SPPI, this leads to a yearly average estimate of -$0.51. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Spectrum Pharmaceuticals Inc. surprised analysts by $0.10 when it reported -$0.09 EPS against a consensus estimate of -$0.19. The surprise factor in the prior quarter was -$0.05. Based on analyst estimates, the high estimate for the next quarter is -$0.12 and the low estimate is -$0.18. The average estimate for the next quarter is thus -$0.15.
Summary of Insider Activity:
Insiders traded SPPI stock several times over the past three months with 4 Buys and 6 Sells. In these transactions, 1,390,672 shares were bought while 30,609 shares were sold. The number of buy transactions has increased to 7 while that of sell transactions has risen to 26 over the past year. The total number of shares bought during that period was 1,644,931 while 335,196 shares were sold.