MEI Pharma Inc. (NASDAQ: MEIP) stock fell -6.90% on Friday to $0.41 against a previous-day closing price of $0.44. With 1.99 million shares changed hands, the volume of the stock remained heavier than its average volume of 1.84 million shares. During the session, the Biotechnology company that operates in wider Healthcare sector, reached to the highest price of $0.4800 whereas the lowest price it dropped to was $0.4100. The 52-week range on MEIP shows that it touched its highest point at $3.55 and its lowest point at $0.41 during that stretch. It currently has a 1-year price target of $5.17. Beta for the stock currently stands at 0.81.
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 MEIP was down-trending over the past week, with a drop of -16.33%, but this was down by -23.34% over a month. Three-month performance dropped to -29.95% while six-month performance fell -77.72%. The stock lost -85.20% in the past year, while it has lost -84.64% so far this year. A look at the trailing 12-month EPS for MEIP yields -0.44 with Next year EPS estimates of -0.63. For the next quarter, that number is -0.16. This implies an EPS growth rate of -19.20% for this year and 29.30% for next year. EPS is expected to decline by -0.10% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -51.80%.
Float and Shares Shorts:
At present, 133.12 million MEIP shares are outstanding with a float of 132.61 million shares on hand for trading. On Jul 14, 2022, short shares totaled 5.8 million, which was 4.36% higher than short shares on Jun 14, 2022. In addition to Dr. Daniel P. Gold as the firm’s Pres, CEO & Director, Mr. David M. Urso B.A., Esq., J.D. serves as its COO & Gen. Counsel.
Through their ownership of 41.14% of MEIP’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 8.89% of MEIP, in contrast to 4.18% held by mutual funds. Shares owned by individuals account for 20.54%. As the largest shareholder in MEIP with 5.49% of the stake, The Vanguard Group, Inc. holds 7,309,703 shares worth 7,309,703. A second-largest stockholder of MEIP, Anson Funds Management LP, holds 4,610,423 shares, controlling over 3.46% of the firm’s shares. BVF Partners LP is the third largest shareholder in MEIP, holding 3,532,057 shares or 2.65% stake. With a 2.79% stake in MEIP, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 3,716,487 shares are owned by the mutual fund manager. The FCP Medical – BioHealth, which owns about 1.45% of MEIP stock, is the second-largest Mutual Fund holder. It holds 1,929,293 shares valued at 0.98 million. Vanguard Extended Market Index Fu holds 1.10% of the stake in MEIP, owning 1,463,566 shares worth 0.74 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for MEIP since 7 analysts follow the stock currently. There are 4 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 3 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 MEIP analysts setting a high price target of $15.00 and a low target of $0.50, the average target price over the next 12 months is $5.07. Based on these targets, MEIP could surge 3558.54% to reach the target high and rise by 21.95% to reach the target low. Reaching the average price target will result in a growth of 1136.59% 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. MEIP will report FY 2023 earnings on 08/31/2023. Analysts have provided yearly estimates in a range of -$0.55 being high and -$1.00 being low. For MEIP, this leads to a yearly average estimate of -$0.79. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. MEI Pharma Inc. surprised analysts by -$0.02 when it reported -$0.21 EPS against a consensus estimate of -$0.19. The surprise factor in the prior quarter was $0.11. Based on analyst estimates, the high estimate for the next quarter is -$0.13 and the low estimate is -$0.22. The average estimate for the next quarter is thus -$0.18.
Summary of Insider Activity:
Insiders traded MEIP stock several times over the past three months with 0 Buys and 1 Sells. In these transactions, 0 shares were bought while 8,196 shares were sold. The number of buy transactions has remained unchanged to 0 while that of sell transactions has risen to 1 over the past year. The total number of shares bought during that period was 0 while 8,196 shares were sold.