Are Smart Investors Making the Right Decision? Immunovant Inc. (IMVT)

Immunovant Inc. (NASDAQ: IMVT) stock jumped 3.58% on Friday to $17.65 against a previous-day closing price of $17.04. With 0.74 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.19 million shares. During the session, the Biotechnology company that operates in wider Healthcare sector, reached to the highest price of $17.73 whereas the lowest price it dropped to was $16.78. The 52-week range on IMVT shows that it touched its highest point at $20.24 and its lowest point at $3.14 during that stretch. It currently has a 1-year price target of $16.89. Beta for the stock currently stands at 1.08.

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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 IMVT was down-trending over the past week, with a drop of -8.36%, but this was up by 13.43% over a month. Three-month performance surged to 91.02% while six-month performance rose 273.94%. The stock gained 152.87% in the past year, while it has lost -0.56% so far this year. A look at the trailing 12-month EPS for IMVT yields -1.52 with Next year EPS estimates of -1.66. For the next quarter, that number is -0.39. This implies an EPS growth rate of -16.70% for this year and -5.70% for next year.

Float and Shares Shorts:

At present, 116.57 million IMVT shares are outstanding with a float of 53.32 million shares on hand for trading. On Oct 13, 2022, short shares totaled 3.03 million, which was 2.35% higher than short shares on Sep 14, 2022. In addition to Dr. Frank M. Torti M.B.A., M.D., MBA as the firm’s Exec. Chairperson of the Board, Dr. Peter Salzmann M.B.A., M.D. serves as its CEO & Director.

Institutional Ownership:

Through their ownership of 37.50% of IMVT’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 59.83% of IMVT, in contrast to 17.23% held by mutual funds. Shares owned by individuals account for 15.28%. As the largest shareholder in IMVT with 7.63% of the stake, Deep Track Capital LP holds 9,860,246 shares worth 9,860,246. A second-largest stockholder of IMVT, Eventide Asset Management LLC, holds 5,372,512 shares, controlling over 4.16% of the firm’s shares. Alpine Global Management LLC is the third largest shareholder in IMVT, holding 4,348,017 shares or 3.37% stake. With a 4.16% stake in IMVT, the Eventide Healthcare & Life Scienc is the largest stakeholder. A total of 5,372,512 shares are owned by the mutual fund manager. The SPDR S&P Biotech ETF, which owns about 1.75% of IMVT stock, is the second-largest Mutual Fund holder. It holds 2,263,804 shares valued at 40.18 million. Vanguard Total Stock Market Index holds 1.23% of the stake in IMVT, owning 1,594,573 shares worth 28.3 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for IMVT since 9 analysts follow the stock currently. There are 6 analysts who recommend BUY ratings, while 1 suggest SELL ratings. Of the remaining analysts, 2 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 IMVT analysts setting a high price target of $30.00 and a low target of $4.00, the average target price over the next 12 months is $18.38. Based on these targets, IMVT could surge 69.97% to reach the target high and fall by -77.34% to reach the target low. Reaching the average price target will result in a growth of 4.14% 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. IMVT will report FY 2023 earnings on 06/07/2023. Analysts have provided yearly estimates in a range of -$1.40 being high and -$1.64 being low. For IMVT, this leads to a yearly average estimate of -$1.54. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Immunovant Inc. surprised analysts by -$0.04 when it reported -$0.41 EPS against a consensus estimate of -$0.37. The surprise factor in the prior quarter was $0.02. Based on analyst estimates, the high estimate for the next quarter is -$0.31 and the low estimate is -$0.43. The average estimate for the next quarter is thus -$0.39.

Summary of Insider Activity:

Insiders traded IMVT stock several times over the past three months with 0 Buys and 0 Sells. In these transactions, 0 shares were bought while 0 shares were sold. The number of buy transactions has increased to 13 while that of sell transactions has risen to 20 over the past year. The total number of shares bought during that period was 1,787,063 while 56,216 shares were sold.

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