A better buy-in window may exist right now for Verona Pharma plc (VRNA)

Verona Pharma plc (NASDAQ: VRNA) stock fell -1.30% on Friday to $22.70 against a previous-day closing price of $23.00. With 0.5 million shares changed hands, the volume of the stock remained lighter than its average volume of 0.9 million shares. During the session, the Biotechnology company that operates in wider Healthcare sector, reached to the highest price of $23.08 whereas the lowest price it dropped to was $22.18. The 52-week range on VRNA shows that it touched its highest point at $26.44 and its lowest point at $3.41 during that stretch. It currently has a 1-year price target of $29.57.

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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 VRNA was down-trending over the past week, with a drop of -4.62%, but this was up by 68.27% over a month. Three-month performance surged to 129.76% while six-month performance rose 294.10%. The stock gained 229.46% in the past year, while it has lost -13.13% so far this year. A look at the trailing 12-month EPS for VRNA yields -0.99 with Next year EPS estimates of -0.94. For the next quarter, that number is -0.09. This implies an EPS growth rate of -14.60% for this year and 14.50% for next year.

Float and Shares Shorts:

At present, 68.02 million VRNA shares are outstanding with a float of 59.22 million shares on hand for trading. On Oct 13, 2022, short shares totaled 0.76 million, which was 1.25% higher than short shares on Sep 14, 2022. In addition to Dr. David S. Zaccardelli as the firm’s Pres, CEO & Exec. Director, Mr. Mark W. Hahn serves as its Chief Financial Officer.

Institutional Ownership:

Through their ownership of 49.17% of VRNA’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 6.41% of VRNA, in contrast to 35.50% held by mutual funds. Shares owned by individuals account for –. As the largest shareholder in VRNA with 8.25% of the stake, RA Capital Management LP holds 6,050,000 shares worth 6,050,000. A second-largest stockholder of VRNA, Perceptive Advisors LLC, holds 5,047,264 shares, controlling over 6.88% of the firm’s shares. Wellington Management Co. LLP is the third largest shareholder in VRNA, holding 4,177,276 shares or 5.70% stake. With a 2.14% stake in VRNA, the Wellington Mgmt. Funds is the largest stakeholder. A total of 1,572,991 shares are owned by the mutual fund manager. The Biotech Growth Trust Plc, which owns about 0.91% of VRNA stock, is the second-largest Mutual Fund holder. It holds 665,957 shares valued at 17.4 million. FCP Medical – BioHealth holds 0.44% of the stake in VRNA, owning 324,244 shares worth 8.47 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for VRNA since 7 analysts follow the stock currently. There are 7 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 0 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 VRNA analysts setting a high price target of $33.00 and a low target of $26.00, the average target price over the next 12 months is $29.57. Based on these targets, VRNA could surge 45.37% to reach the target high and rise by 14.54% to reach the target low. Reaching the average price target will result in a growth of 30.26% 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. VRNA will report FY 2022 earnings on 02/29/2024. Analysts have provided yearly estimates in a range of -$0.14 being high and -$0.32 being low. For VRNA, this leads to a yearly average estimate of -$0.18. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Verona Pharma plc surprised analysts by -$0.02 when it reported -$0.03 EPS against a consensus estimate of -$0.01. The surprise factor in the prior quarter was $0.18. Based on analyst estimates, the high estimate for the next quarter is $0.14 and the low estimate is -$0.03. The average estimate for the next quarter is thus $0.01.

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