A History of Outperforming Analyst Forecasts and Beating the Odds: Fulcrum Therapeutics Inc. (FULC)

With 1.01 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.71 million shares. During the session, the Biotechnology company that operates in wider Healthcare sector, reached to the highest price of $13.41 whereas the lowest price it dropped to was $12.32. The 52-week range on FULC shows that it touched its highest point at $24.79 and its lowest point at $3.21 during that stretch. It currently has a 1-year price target of $22.11. Beta for the stock currently stands at 1.96.

Will You Miss Out On This Growth Stock Boom?

A new megatrend in the fintech market is well underway. Mobile payments are projected to boom into a massive $12 trillion market by 2028. According to Motley Fool this growth stock could "deliver huge returns." Not only in the immediate future but also over the next decade. Especially since the man behind this company is a serial entrepreneur who has been wildly successful over the years.

And this is just one of our 5 Best Growth Stocks To Own For 2023.


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 FULC was down-trending over the past week, with a drop of -7.81%, but this was up by 97.04% over a month. Three-month performance surged to 127.98% while six-month performance rose 125.13%. The stock gained 0.64% in the past year, while it has gained 73.49% so far this year. A look at the trailing 12-month EPS for FULC yields -2.56 with Next year EPS estimates of -2.08. For the next quarter, that number is -0.49. This implies an EPS growth rate of 18.10% for this year and 12.60% for next year.

Float and Shares Shorts:

At present, 61.67 million FULC shares are outstanding with a float of 58.56 million shares on hand for trading. On Oct 13, 2022, short shares totaled 3.46 million, which was 6.66% higher than short shares on Sep 14, 2022. In addition to Mr. Bryan E. Stuart as the firm’s Pres, CEO & Director, Dr. Judith A. Dunn Ph.D. serves as its Interim Chief Medical Officer.

Institutional Ownership:

Through their ownership of 93.46% of FULC’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 66.80% of FULC, in contrast to 32.52% held by mutual funds. Shares owned by individuals account for 22.85%. As the largest shareholder in FULC with 18.96% of the stake, RA Capital Management LP holds 9,867,331 shares worth 9,867,331. A second-largest stockholder of FULC, Fidelity Management & Research Co, holds 7,805,100 shares, controlling over 15.00% of the firm’s shares. RTW Investments LP is the third largest shareholder in FULC, holding 3,985,910 shares or 7.66% stake. With a 3.18% stake in FULC, the Fidelity Select Port. – Biotechno is the largest stakeholder. A total of 1,655,989 shares are owned by the mutual fund manager. The Fidelity Growth Company Fund, which owns about 2.62% of FULC stock, is the second-largest Mutual Fund holder. It holds 1,364,788 shares valued at 9.94 million. Vanguard Total Stock Market Index holds 2.31% of the stake in FULC, owning 1,199,920 shares worth 8.74 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for FULC since 9 analysts follow the stock currently. There are 8 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 FULC analysts setting a high price target of $35.00 and a low target of $8.00, the average target price over the next 12 months is $22.44. Based on these targets, FULC could surge 177.12% to reach the target high and fall by -36.66% to reach the target low. Reaching the average price target will result in a growth of 77.67% 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. FULC will report FY 2022 earnings on 02/29/2024. Analysts have provided yearly estimates in a range of -$2.16 being high and -$2.49 being low. For FULC, this leads to a yearly average estimate of -$2.38. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Fulcrum Therapeutics Inc. surprised analysts by $0.10 when it reported -$0.51 EPS against a consensus estimate of -$0.61. The surprise factor in the prior quarter was -$0.17. Based on analyst estimates, the high estimate for the next quarter is -$0.41 and the low estimate is -$0.53. The average estimate for the next quarter is thus -$0.49.

Summary of Insider Activity:

Insiders traded FULC stock several times over the past three months with 7 Buys and 1 Sells. In these transactions, 2,686,628 shares were bought while 2,000,000 shares were sold. The number of buy transactions has increased to 16 while that of sell transactions has risen to 9 over the past year. The total number of shares bought during that period was 2,927,817 while 2,237,939 shares were sold.

Leave a Comment

Your email address will not be published. Required fields are marked *