Stocks of Cerus Corporation (CERS) are poised to climb above their peers

Cerus Corporation (NASDAQ: CERS) stock jumped 0.65% on Friday to $3.12 against a previous-day closing price of $3.10. With 1.93 million shares changed hands, the volume of the stock remained heavier than its average volume of 1.31 million shares. During the session, the Biotechnology company that operates in wider Healthcare sector, reached to the highest price of $3.2116 whereas the lowest price it dropped to was $3.0700. The 52-week range on CERS shows that it touched its highest point at $6.00 and its lowest point at $2.53 during that stretch. It currently has a 1-year price target of $8.25. Beta for the stock currently stands at 1.00.

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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 CERS was up-trending over the past week, with a rise of 2.63%, but this was down by -19.59% over a month. Three-month performance dropped to -10.86% while six-month performance fell -46.02%. The stock lost -42.12% in the past year, while it has lost -14.52% so far this year. A look at the trailing 12-month EPS for CERS yields -0.22 with Next year EPS estimates of -0.17. For the next quarter, that number is -0.05. This implies an EPS growth rate of 13.00% for this year and 19.00% for next year.

Float and Shares Shorts:

At present, 177.24 million CERS shares are outstanding with a float of 171.72 million shares on hand for trading. On Oct 13, 2022, short shares totaled 7.13 million, which was 4.03% higher than short shares on Sep 14, 2022. In addition to Mr. William M. Greenman as the firm’s Pres, CEO & Director, Dr. Laurence M. Corash serves as its Co-Founder & Chief Scientific Officer.

Institutional Ownership:

Through their ownership of 78.05% of CERS’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 5.17% of CERS, in contrast to 43.25% held by mutual funds. Shares owned by individuals account for 36.35%. As the largest shareholder in CERS with 9.50% of the stake, ARK Investment Management LLC holds 16,853,875 shares worth 16,853,875. A second-largest stockholder of CERS, Baker Bros. Advisors LP, holds 16,067,558 shares, controlling over 9.06% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in CERS, holding 10,261,457 shares or 5.78% stake. With a 6.19% stake in CERS, the ARK Innovation ETF is the largest stakeholder. A total of 10,981,162 shares are owned by the mutual fund manager. The PRIMECAP Odyssey Aggressive Growt, which owns about 5.22% of CERS stock, is the second-largest Mutual Fund holder. It holds 9,268,500 shares valued at 33.83 million. Nikko AM Global Umbrella Fund – A holds 4.88% of the stake in CERS, owning 8,658,730 shares worth 31.6 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for CERS since 5 analysts follow the stock currently. There are 3 analysts who recommend BUY ratings, while 0 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 CERS analysts setting a high price target of $11.50 and a low target of $3.75, the average target price over the next 12 months is $8.25. Based on these targets, CERS could surge 268.59% to reach the target high and rise by 20.19% to reach the target low. Reaching the average price target will result in a growth of 164.42% 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. CERS will report FY 2022 earnings on 02/21/2024. Analysts have provided yearly estimates in a range of -$0.20 being high and -$0.23 being low. For CERS, this leads to a yearly average estimate of -$0.22. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Cerus Corporation surprised analysts by $0.01 when it reported -$0.05 EPS against a consensus estimate of -$0.06. The surprise factor in the prior quarter was $0.02. Based on analyst estimates, the high estimate for the next quarter is -$0.04 and the low estimate is -$0.07. The average estimate for the next quarter is thus -$0.06.

Summary of Insider Activity:

Insiders traded CERS stock several times over the past three months with 1 Buys and 1 Sells. In these transactions, 12,500 shares were bought while 12,500 shares were sold. The number of buy transactions has increased to 38 while that of sell transactions has risen to 27 over the past year. The total number of shares bought during that period was 1,978,517 while 756,389 shares were sold.

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