How does Phathom Pharmaceuticals Inc. (PHAT) change from a tortoise to a hare?

Phathom Pharmaceuticals Inc. (NASDAQ: PHAT) stock fell -5.56% on Friday to $10.02 against a previous-day closing price of $10.61. With 2.61 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.26 million shares. During the session, the Biotechnology company that operates in wider Healthcare sector, reached to the highest price of $10.72 whereas the lowest price it dropped to was $9.81. The 52-week range on PHAT shows that it touched its highest point at $36.09 and its lowest point at $6.09 during that stretch. It currently has a 1-year price target of $39.60.

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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 PHAT was up-trending over the past week, with a rise of 0.50%, but this was up by 11.33% over a month. Three-month performance surged to 22.94% while six-month performance fell -28.07%. The stock lost -68.57% in the past year, while it has lost -49.06% so far this year. A look at the trailing 12-month EPS for PHAT yields -4.74 with Next year EPS estimates of -5.15. For the next quarter, that number is -1.24. This implies an EPS growth rate of -21.40% for this year and -7.30% for next year.

Float and Shares Shorts:

At present, 38.27 million PHAT shares are outstanding with a float of 29.57 million shares on hand for trading. On Jul 14, 2022, short shares totaled 3.23 million, which was 8.27% higher than short shares on Jun 14, 2022. In addition to Ms. Terrie J. Curran as the firm’s Pres, CEO & Director, Mr. David A. Socks serves as its Co-Founder & Director.

Institutional Ownership:

Through their ownership of 67.80% of PHAT’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 61.65% of PHAT, in contrast to 23.87% held by mutual funds. Shares owned by individuals account for 22.85%. As the largest shareholder in PHAT with 5.19% of the stake, Invesco Advisers, Inc. holds 2,033,918 shares worth 2,033,918. A second-largest stockholder of PHAT, Avidity Partners Management LP, holds 1,919,800 shares, controlling over 4.90% of the firm’s shares. The Vanguard Group, Inc. is the third largest shareholder in PHAT, holding 1,837,101 shares or 4.69% stake. With a 2.87% stake in PHAT, the Invesco Global Fund is the largest stakeholder. A total of 1,123,410 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 2.22% of PHAT stock, is the second-largest Mutual Fund holder. It holds 868,958 shares valued at 7.42 million. Government Pension Fund – Global holds 1.69% of the stake in PHAT, owning 660,690 shares worth 5.64 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for PHAT since 4 analysts follow the stock currently. There are 3 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 PHAT analysts setting a high price target of $45.00 and a low target of $9.00, the average target price over the next 12 months is $33.50. Based on these targets, PHAT could surge 349.1% to reach the target high and fall by -10.18% to reach the target low. Reaching the average price target will result in a growth of 234.33% 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. PHAT will report FY 2022 earnings on 03/23/2023. Analysts have provided yearly estimates in a range of -$4.40 being high and -$4.98 being low. For PHAT, this leads to a yearly average estimate of -$4.80. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Phathom Pharmaceuticals Inc. surprised analysts by -$0.30 when it reported -$1.33 EPS against a consensus estimate of -$1.03. The surprise factor in the prior quarter was -$0.10. Based on analyst estimates, the high estimate for the next quarter is -$1.13 and the low estimate is -$1.29. The average estimate for the next quarter is thus -$1.24.

Summary of Insider Activity:

Insiders traded PHAT stock several times over the past three months with 3 Buys and 0 Sells. In these transactions, 22,500 shares were bought while 0 shares were sold. The number of buy transactions has increased to 15 while that of sell transactions has risen to 5 over the past year. The total number of shares bought during that period was 7,751,000 while 1,018,019 shares were sold.

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