How does Sorrento Therapeutics Inc. (SRNE) change from a tortoise to a hare?

Sorrento Therapeutics Inc. (NASDAQ: SRNE) stock fell -6.03% on Friday to $1.09 against a previous-day closing price of $1.16. With 12.23 million shares changed hands, the volume of the stock remained lighter than its average volume of 22.79 million shares. During the session, the Biotechnology company that operates in wider Healthcare sector, reached to the highest price of $1.1600 whereas the lowest price it dropped to was $1.0400. The 52-week range on SRNE shows that it touched its highest point at $1.83 and its lowest point at $0.30 during that stretch. It currently has a 1-year price target of $12.00. Beta for the stock currently stands at 1.98.

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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 SRNE was down-trending over the past week, with a drop of -8.40%, but this was up by 209.97% over a month. Three-month performance surged to 80.01% while six-month performance fell -2.52%. The stock lost -37.35% in the past year, while it has gained 204.76% so far this year. A look at the trailing 12-month EPS for SRNE yields -1.33 with Next year EPS estimates of -0.83. For the next quarter, that number is -0.23. This implies an EPS growth rate of -11.90% for this year and 26.50% for next year. EPS is expected to grow by 37.00% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -3.70%.

Float and Shares Shorts:

At present, 471.88 million SRNE shares are outstanding with a float of 465.68 million shares on hand for trading. On Oct 13, 2022, short shares totaled 60.67 million, which was 13.48% higher than short shares on Sep 14, 2022. In addition to Dr. Henry H. Ji Ph.D. as the firm’s Chairman, Pres & CEO, Ms. Elizabeth Adkins Czerepak M.B.A. serves as its Exec. VP, CFO & Chief Bus. Officer.


Institutional Ownership:

Through their ownership of 34.51% of SRNE’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 9.65% of SRNE, in contrast to 8.18% held by mutual funds. Shares owned by individuals account for 25.56%. As the largest shareholder in SRNE with 8.62% of the stake, SSgA Funds Management, Inc. holds 40,669,276 shares worth 40,669,276. A second-largest stockholder of SRNE, BlackRock Fund Advisors, holds 26,290,793 shares, controlling over 5.57% of the firm’s shares. The Vanguard Group, Inc. is the third largest shareholder in SRNE, holding 21,804,021 shares or 4.62% stake. With a 8.88% stake in SRNE, the SPDR S&P Biotech ETF is the largest stakeholder. A total of 41,912,207 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 3.31% of SRNE stock, is the second-largest Mutual Fund holder. It holds 15,624,325 shares valued at 13.84 million. iShares Russell 2000 ETF holds 2.15% of the stake in SRNE, owning 10,144,286 shares worth 8.99 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for SRNE since 2 analysts follow the stock currently. There are 2 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 SRNE analysts setting a high price target of $5.00 and a low target of $5.00, the average target price over the next 12 months is $5.00. Based on these targets, SRNE could surge 358.72% to reach the target high and rise by 358.72% to reach the target low. Reaching the average price target will result in a growth of 358.72% 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. SRNE will report FY 2022 earnings on 02/28/2024. Analysts have provided yearly estimates in a range of -$1.09 being high and -$1.18 being low. For SRNE, this leads to a yearly average estimate of -$1.14. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Sorrento Therapeutics Inc. surprised analysts by $0.06 when it reported -$0.20 EPS against a consensus estimate of -$0.26. The surprise factor in the prior quarter was -$0.29. Based on analyst estimates, the high estimate for the next quarter is -$0.23 and the low estimate is -$0.23. The average estimate for the next quarter is thus -$0.23.

Summary of Insider Activity:

Insiders traded SRNE stock several times over the past three months with 3 Buys and 0 Sells. In these transactions, 1,500,500 shares were bought while 0 shares were sold. The number of buy transactions has increased to 9 while that of sell transactions has remained unmoved to 0 over the past year. The total number of shares bought during that period was 4,210,498 while 0 shares were sold.

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