Ready to Jump After Recent Trade: Erasca Inc. (ERAS)

Erasca Inc. (NASDAQ: ERAS) stock jumped 0.79% on Friday to $3.84 against a previous-day closing price of $3.81. With 0.91 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.07 million shares. During the session, the Biotechnology company that operates in wider Healthcare sector, reached to the highest price of $3.9300 whereas the lowest price it dropped to was $3.7700. The 52-week range on ERAS shows that it touched its highest point at $12.80 and its lowest point at $3.60 during that stretch. It currently has a 1-year price target of $18.60.

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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 ERAS was down-trending over the past week, with a drop of -10.28%, but this was down by -13.71% over a month. Three-month performance dropped to -45.76% while six-month performance fell -50.58%. The stock lost -66.02% in the past year, while it has lost -10.90% so far this year. A look at the trailing 12-month EPS for ERAS yields -1.15 with Next year EPS estimates of -1.32. For the next quarter, that number is -0.29. This implies an EPS growth rate of -116.70% for this year and -1.50% for next year.

Float and Shares Shorts:

At present, 120.80 million ERAS shares are outstanding with a float of 100.19 million shares on hand for trading. On Oct 13, 2022, short shares totaled 17.52 million, which was 14.34% higher than short shares on Sep 14, 2022. In addition to Dr. Jonathan E. Lim M.D. as the firm’s Co-Founder, Chairman & CEO, Mr. Ebun S. Garner J.D., Esq. serves as its Gen. Counsel & Corp. Sec.

Institutional Ownership:

Through their ownership of 78.50% of ERAS’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 32.25% of ERAS, in contrast to 25.48% held by mutual funds. Shares owned by individuals account for 22.50%. As the largest shareholder in ERAS with 12.74% of the stake, Fidelity Management & Research Co holds 17,543,320 shares worth 17,543,320. A second-largest stockholder of ERAS, Cormorant Asset Management LP, holds 10,813,246 shares, controlling over 7.85% of the firm’s shares. PFM Health Sciences LP is the third largest shareholder in ERAS, holding 7,264,981 shares or 5.27% stake. With a 2.04% stake in ERAS, the SPDR S&P Biotech ETF is the largest stakeholder. A total of 2,808,972 shares are owned by the mutual fund manager. The Fidelity Select Port. – Health Ca, which owns about 1.52% of ERAS stock, is the second-largest Mutual Fund holder. It holds 2,087,493 shares valued at 9.0 million. Vanguard Total Stock Market Index holds 1.33% of the stake in ERAS, owning 1,830,279 shares worth 7.89 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for ERAS since 5 analysts follow the stock currently. There are 4 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 1 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 ERAS analysts setting a high price target of $22.00 and a low target of $15.00, the average target price over the next 12 months is $18.60. Based on these targets, ERAS could surge 472.92% to reach the target high and rise by 290.62% to reach the target low. Reaching the average price target will result in a growth of 384.38% 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. ERAS will report FY 2022 earnings on 03/22/2024. Analysts have provided yearly estimates in a range of -$1.15 being high and -$1.73 being low. For ERAS, this leads to a yearly average estimate of -$1.30. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Erasca Inc. surprised analysts by $0.02 when it reported -$0.29 EPS against a consensus estimate of -$0.31. 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 -$0.79. The average estimate for the next quarter is thus -$0.39.

Summary of Insider Activity:

Insiders traded ERAS stock several times over the past three months with 6 Buys and 0 Sells. In these transactions, 705,384 shares were bought while 0 shares were sold. The number of buy transactions has increased to 9 while that of sell transactions has risen to 1 over the past year. The total number of shares bought during that period was 709,498 while 750,000 shares were sold.

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