A look into Arrowhead Pharmaceuticals Inc. (ARWR)’s deeper side

Arrowhead Pharmaceuticals Inc. (NASDAQ: ARWR) stock fell -3.14% on Monday to $32.70 against a previous-day closing price of $33.76. With 1.23 million shares changed hands, the volume of the stock remained heavier than its average volume of 1.0 million shares. During the session, the Biotechnology company that operates in wider Healthcare sector, reached to the highest price of $33.69 whereas the lowest price it dropped to was $32.29. The 52-week range on ARWR shows that it touched its highest point at $56.25 and its lowest point at $26.81 during that stretch. It currently has a 1-year price target of $65.38. Beta for the stock currently stands at 1.07.

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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 ARWR was down-trending over the past week, with a drop of -11.19%, but this was down by -0.73% over a month. Three-month performance surged to 0.28% while six-month performance fell -23.37%. The stock lost -37.73% in the past year, while it has lost -19.38% so far this year. A look at the trailing 12-month EPS for ARWR yields -1.68 with Next year EPS estimates of -3.04. For the next quarter, that number is 0.51. This implies an EPS growth rate of -23.00% for this year and -81.00% for next year. EPS is expected to grow by 7.33% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -29.10%.

Float and Shares Shorts:

At present, 105.89 million ARWR shares are outstanding with a float of 103.30 million shares on hand for trading. On Oct 13, 2022, short shares totaled 3.94 million, which was 3.72% higher than short shares on Sep 14, 2022. In addition to Dr. Christopher R. Anzalone Ph.D. as the firm’s CEO, Pres & Director, Mr. Kenneth A. Myszkowski serves as its Chief Financial Officer.

Institutional Ownership:

Through their ownership of 69.59% of ARWR’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 42.35% of ARWR, in contrast to 4.83% held by mutual funds. Shares owned by individuals account for 24.68%. As the largest shareholder in ARWR with 10.34% of the stake, BlackRock Fund Advisors holds 10,963,831 shares worth 10,963,831. A second-largest stockholder of ARWR, The Vanguard Group, Inc., holds 9,866,463 shares, controlling over 9.31% of the firm’s shares. SSgA Funds Management, Inc. is the third largest shareholder in ARWR, holding 5,254,432 shares or 4.96% stake. With a 3.08% stake in ARWR, the iShares Core S&P Mid Cap ETF is the largest stakeholder. A total of 3,265,647 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 2.88% of ARWR stock, is the second-largest Mutual Fund holder. It holds 3,055,993 shares valued at 123.95 million. SPDR S&P Biotech ETF holds 2.47% of the stake in ARWR, owning 2,617,513 shares worth 106.17 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for ARWR since 12 analysts follow the stock currently. There are 9 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 2 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 ARWR analysts setting a high price target of $90.00 and a low target of $22.00, the average target price over the next 12 months is $65.38. Based on these targets, ARWR could surge 175.23% to reach the target high and fall by -32.72% to reach the target low. Reaching the average price target will result in a growth of 99.94% 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. ARWR will report FY 2023 earnings on 11/27/2023. Analysts have provided yearly estimates in a range of $0.62 being high and -$4.02 being low. For ARWR, this leads to a yearly average estimate of -$1.81. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Arrowhead Pharmaceuticals Inc. surprised analysts by -$0.22 when it reported -$0.80 EPS against a consensus estimate of -$0.58. The surprise factor in the prior quarter was -$0.11. Based on analyst estimates, the high estimate for the next quarter is $1.79 and the low estimate is -$0.77. The average estimate for the next quarter is thus $0.37.

Summary of Insider Activity:

Insiders traded ARWR stock several times over the past three months with 8 Buys and 22 Sells. In these transactions, 529,900 shares were bought while 76,141 shares were sold. The number of buy transactions has increased to 10 while that of sell transactions has risen to 30 over the past year. The total number of shares bought during that period was 678,789 while 911,026 shares were sold.

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