Is ImmunoGen Inc. (IMGN) positioned for future growth?

ImmunoGen Inc. (NASDAQ: IMGN) stock jumped 4.71% on Friday to $4.67 against a previous-day closing price of $4.46. With 3.07 million shares changed hands, the volume of the stock remained lighter than its average volume of 3.7 million shares. During the session, the Biotechnology company that operates in wider Healthcare sector, reached to the highest price of $4.6800 whereas the lowest price it dropped to was $4.3500. The 52-week range on IMGN shows that it touched its highest point at $6.63 and its lowest point at $3.10 during that stretch. It currently has a 1-year price target of $12.44. Beta for the stock currently stands at 0.88.

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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 IMGN was down-trending over the past week, with a drop of -1.06%, but this was up by 0.86% over a month. Three-month performance dropped to -23.32% while six-month performance fell -10.19%. The stock lost -20.03% in the past year, while it has lost -5.85% so far this year. A look at the trailing 12-month EPS for IMGN yields -0.81 with Next year EPS estimates of -0.91. For the next quarter, that number is -0.30. This implies an EPS growth rate of -168.30% for this year and 3.20% for next year.

Float and Shares Shorts:

At present, 253.51 million IMGN shares are outstanding with a float of 219.84 million shares on hand for trading. On Oct 13, 2022, short shares totaled 14.66 million, which was 6.64% higher than short shares on Sep 14, 2022. In addition to Mr. Mark Joseph Enyedy as the firm’s Pres, CEO & Director, Ms. Susan Altschuller Ph.D. serves as its Sr. VP & CFO.


Institutional Ownership:

Through their ownership of 92.15% of IMGN’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 55.23% of IMGN, in contrast to 36.77% held by mutual funds. Shares owned by individuals account for 1.49%. As the largest shareholder in IMGN with 9.85% of the stake, RA Capital Management LP holds 21,741,458 shares worth 21,741,458. A second-largest stockholder of IMGN, The Vanguard Group, Inc., holds 15,217,418 shares, controlling over 6.89% of the firm’s shares. SSgA Funds Management, Inc. is the third largest shareholder in IMGN, holding 14,594,873 shares or 6.61% stake. With a 6.08% stake in IMGN, the SPDR S&P Biotech ETF is the largest stakeholder. A total of 13,427,977 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 3.03% of IMGN stock, is the second-largest Mutual Fund holder. It holds 6,685,222 shares valued at 33.16 million. iShares Russell 2000 ETF holds 2.17% of the stake in IMGN, owning 4,785,749 shares worth 23.74 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for IMGN since 12 analysts follow the stock currently. There are 8 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 3 believe that the stock is worth HOLDING, 1 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 IMGN analysts setting a high price target of $22.00 and a low target of $4.00, the average target price over the next 12 months is $12.00. Based on these targets, IMGN could surge 371.09% to reach the target high and fall by -14.35% to reach the target low. Reaching the average price target will result in a growth of 156.96% 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. IMGN will report FY 2022 earnings on 02/23/2024. Analysts have provided yearly estimates in a range of -$0.91 being high and -$0.97 being low. For IMGN, this leads to a yearly average estimate of -$0.95. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. ImmunoGen Inc. surprised analysts by -$0.06 when it reported -$0.31 EPS against a consensus estimate of -$0.25. The surprise factor in the prior quarter was -$0.03. Based on analyst estimates, the high estimate for the next quarter is -$0.26 and the low estimate is -$0.33. The average estimate for the next quarter is thus -$0.30.

Summary of Insider Activity:

Insiders traded IMGN stock several times over the past three months with 1 Buys and 0 Sells. In these transactions, 25,000 shares were bought while 0 shares were sold. The number of buy transactions has increased to 6 while that of sell transactions has remained unmoved to 0 over the past year. The total number of shares bought during that period was 39,911 while 0 shares were sold.

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