Does Karyopharm Therapeutics Inc. (KPTI) offer a good opportunity for investors?

Karyopharm Therapeutics Inc. (NASDAQ: KPTI) stock fell -3.56% on Monday to $3.25 against a previous-day closing price of $3.37. With 1.93 million shares changed hands, the volume of the stock remained lighter than its average volume of 2.69 million shares. During the session, the Biotechnology company that operates in wider Healthcare sector, reached to the highest price of $3.3700 whereas the lowest price it dropped to was $3.2300. The 52-week range on KPTI shows that it touched its highest point at $14.73 and its lowest point at $2.45 during that stretch. It currently has a 1-year price target of $8.80. Beta for the stock currently stands at -0.04.

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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 KPTI was down-trending over the past week, with a drop of -1.52%, but this was up by 7.62% over a month. Three-month performance dropped to -26.64% while six-month performance fell -26.97%. The stock lost -57.96% in the past year, while it has lost -4.41% so far this year. A look at the trailing 12-month EPS for KPTI yields -1.09 with Next year EPS estimates of -1.32. For the next quarter, that number is -0.35. This implies an EPS growth rate of 39.40% for this year and 32.00% for next year.

Float and Shares Shorts:

At present, 80.21 million KPTI shares are outstanding with a float of 74.06 million shares on hand for trading. On Oct 13, 2022, short shares totaled 13.69 million, which was 17.16% higher than short shares on Sep 14, 2022. In addition to Mr. Richard A. Paulson M.B.A. as the firm’s Pres, CEO & Director, Dr. Sharon Shacham M.B.A., Ph.D. serves as its Co-Founder & Chairman of Scientific Advisory Board.

Institutional Ownership:

Through their ownership of 89.75% of KPTI’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 61.20% of KPTI, in contrast to 35.07% held by mutual funds. Shares owned by individuals account for 17.79%. As the largest shareholder in KPTI with 13.99% of the stake, Avidity Partners Management LP holds 11,351,819 shares worth 11,351,819. A second-largest stockholder of KPTI, SSgA Funds Management, Inc., holds 9,010,339 shares, controlling over 11.10% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in KPTI, holding 5,863,946 shares or 7.23% stake. With a 8.42% stake in KPTI, the SPDR S&P Biotech ETF is the largest stakeholder. A total of 6,835,912 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 2.69% of KPTI stock, is the second-largest Mutual Fund holder. It holds 2,183,595 shares valued at 7.42 million. iShares Russell 2000 ETF holds 2.15% of the stake in KPTI, owning 1,745,416 shares worth 5.93 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for KPTI since 10 analysts follow the stock currently. There are 4 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 4 believe that the stock is worth HOLDING, 2 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 KPTI analysts setting a high price target of $16.00 and a low target of $5.00, the average target price over the next 12 months is $8.80. Based on these targets, KPTI could surge 392.31% to reach the target high and rise by 53.85% to reach the target low. Reaching the average price target will result in a growth of 170.77% 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. KPTI will report FY 2022 earnings on 02/06/2024. Analysts have provided yearly estimates in a range of -$1.76 being high and -$2.03 being low. For KPTI, this leads to a yearly average estimate of -$1.94. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Karyopharm Therapeutics Inc. surprised analysts by $0.12 when it reported -$0.45 EPS against a consensus estimate of -$0.57. The surprise factor in the prior quarter was $0.01. Based on analyst estimates, the high estimate for the next quarter is -$0.24 and the low estimate is -$0.42. The average estimate for the next quarter is thus -$0.35.

Summary of Insider Activity:

Insiders traded KPTI stock several times over the past three months with 0 Buys and 3 Sells. In these transactions, 0 shares were bought while 10,905 shares were sold. The number of buy transactions has increased to 13 while that of sell transactions has risen to 33 over the past year. The total number of shares bought during that period was 872,026 while 647,554 shares were sold.

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