Akero Therapeutics Inc. (NASDAQ: AKRO) stock fell -2.06% on Monday to $47.00 against a previous-day closing price of $47.99. With 0.55 million shares changed hands, the volume of the stock remained lighter than its average volume of 0.78 million shares. During the session, the Biotechnology company that operates in wider Healthcare sector, reached to the highest price of $48.44 whereas the lowest price it dropped to was $46.53. The 52-week range on AKRO shows that it touched its highest point at $54.88 and its lowest point at $7.52 during that stretch. It currently has a 1-year price target of $52.00. Beta for the stock currently stands at -0.93.
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 AKRO was down-trending over the past week, with a drop of -6.45%, but this was up by 12.39% over a month. Three-month performance surged to 16.80% while six-month performance rose 334.78%. The stock gained 134.88% in the past year, while it has lost -14.23% so far this year. A look at the trailing 12-month EPS for AKRO yields -3.37 with Next year EPS estimates of -3.50. For the next quarter, that number is -0.78. This implies an EPS growth rate of -14.90% for this year and -9.40% for next year.
Float and Shares Shorts:
At present, 46.76 million AKRO shares are outstanding with a float of 41.83 million shares on hand for trading. On Oct 13, 2022, short shares totaled 3.97 million, which was 8.56% higher than short shares on Sep 14, 2022. In addition to Dr. Andrew Cheng M.D., Ph.D. as the firm’s Pres, CEO & Director, Dr. Jonathan M. Young J.D., Ph.D. serves as its Co-Founder, Exec. VP, COO & Sec.
Through their ownership of 84.02% of AKRO’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 53.06% of AKRO, in contrast to 31.34% held by mutual funds. Shares owned by individuals account for 31.00%. As the largest shareholder in AKRO with 9.14% of the stake, Janus Henderson Investors US LLC holds 4,272,385 shares worth 4,272,385. A second-largest stockholder of AKRO, Alkeon Capital Management LLC, holds 3,162,259 shares, controlling over 6.76% of the firm’s shares. Avidity Partners Management LP is the third largest shareholder in AKRO, holding 3,122,000 shares or 6.68% stake. With a 3.94% stake in AKRO, the SPDR S&P Biotech ETF is the largest stakeholder. A total of 1,842,882 shares are owned by the mutual fund manager. The ACAP Strategic Fund, which owns about 3.22% of AKRO stock, is the second-largest Mutual Fund holder. It holds 1,507,756 shares valued at 82.63 million. Vanguard Total Stock Market Index holds 2.91% of the stake in AKRO, owning 1,359,624 shares worth 74.51 million.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for AKRO since 6 analysts follow the stock currently. There are 5 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 AKRO analysts setting a high price target of $64.00 and a low target of $40.00, the average target price over the next 12 months is $52.00. Based on these targets, AKRO could surge 36.17% to reach the target high and fall by -14.89% to reach the target low. Reaching the average price target will result in a growth of 10.64% 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. AKRO will report FY 2022 earnings on 02/23/2024. Analysts have provided yearly estimates in a range of -$3.06 being high and -$3.33 being low. For AKRO, this leads to a yearly average estimate of -$3.20. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Akero Therapeutics Inc. surprised analysts by -$0.16 when it reported -$0.92 EPS against a consensus estimate of -$0.76. The surprise factor in the prior quarter was $0.07. Based on analyst estimates, the high estimate for the next quarter is -$0.67 and the low estimate is -$0.89. The average estimate for the next quarter is thus -$0.77.
Summary of Insider Activity:
Insiders traded AKRO stock several times over the past three months with 17 Buys and 47 Sells. In these transactions, 246,408 shares were bought while 2,119,998 shares were sold. The number of buy transactions has increased to 31 while that of sell transactions has risen to 65 over the past year. The total number of shares bought during that period was 433,516 while 2,419,998 shares were sold.