Investors in cash trouble should check out Wave Life Sciences Ltd. (WVE)

Wave Life Sciences Ltd. (NASDAQ: WVE) stock jumped 6.73% on Friday to $4.76 against a previous-day closing price of $4.46. With 0.68 million shares changed hands, the volume of the stock remained lighter than its average volume of 0.7 million shares. During the session, the Biotechnology company that operates in wider Healthcare sector, reached to the highest price of $4.8300 whereas the lowest price it dropped to was $4.2200. The 52-week range on WVE shows that it touched its highest point at $7.12 and its lowest point at $1.16 during that stretch. It currently has a 1-year price target of $8.57. Beta for the stock currently stands at -0.92.

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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 WVE was down-trending over the past week, with a drop of -9.33%, but this was down by -8.99% over a month. Three-month performance dropped to -8.29% while six-month performance rose 27.27%. The stock gained 89.64% in the past year, while it has lost -32.00% so far this year. A look at the trailing 12-month EPS for WVE yields -2.27 with Next year EPS estimates of -1.43. For the next quarter, that number is -0.41. This implies an EPS growth rate of 38.30% for this year and 29.40% for next year.

Float and Shares Shorts:

At present, 93.90 million WVE shares are outstanding with a float of 72.79 million shares on hand for trading. On Oct 13, 2022, short shares totaled 1.58 million, which was 1.82% higher than short shares on Sep 14, 2022. In addition to Dr. Paul B. Bolno M.B.A., M.D., MBA as the firm’s Pres, CEO & Director, Dr. Chandra Vargeese Ph.D. serves as its Chief Technology Officer & Head of Platform Discovery Sciences.

Institutional Ownership:

Through their ownership of 79.28% of WVE’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 57.09% of WVE, in contrast to 34.65% held by mutual funds. Shares owned by individuals account for 16.62%. As the largest shareholder in WVE with 19.79% of the stake, RA Capital Management LP holds 17,202,009 shares worth 17,202,009. A second-largest stockholder of WVE, Maverick Capital Ltd., holds 7,805,219 shares, controlling over 8.98% of the firm’s shares. 683 Capital Management LLC is the third largest shareholder in WVE, holding 7,622,348 shares or 8.77% stake. With a 5.17% stake in WVE, the BB Biotech AG is the largest stakeholder. A total of 4,494,458 shares are owned by the mutual fund manager. The PRIMECAP Odyssey Aggressive Growt, which owns about 4.34% of WVE stock, is the second-largest Mutual Fund holder. It holds 3,768,470 shares valued at 26.38 million. Fidelity Select Port. – Biotechno holds 1.95% of the stake in WVE, owning 1,696,733 shares worth 11.88 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for WVE 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 WVE analysts setting a high price target of $17.00 and a low target of $3.00, the average target price over the next 12 months is $8.57. Based on these targets, WVE could surge 257.14% to reach the target high and fall by -36.97% to reach the target low. Reaching the average price target will result in a growth of 80.04% 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. WVE will report FY 2022 earnings on 02/29/2024. Analysts have provided yearly estimates in a range of -$1.92 being high and -$2.13 being low. For WVE, this leads to a yearly average estimate of -$2.01. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Wave Life Sciences Ltd. surprised analysts by $0.06 when it reported -$0.42 EPS against a consensus estimate of -$0.48. The surprise factor in the prior quarter was -$0.11. Based on analyst estimates, the high estimate for the next quarter is -$0.36 and the low estimate is -$0.47. The average estimate for the next quarter is thus -$0.41.

Summary of Insider Activity:

Insiders traded WVE 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 6 while that of sell transactions has risen to 10 over the past year. The total number of shares bought during that period was 9,720,052 while 156,500 shares were sold.

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