It is Poised to be a Bull Market for Apellis Pharmaceuticals Inc. (APLS)

Apellis Pharmaceuticals Inc. (NASDAQ: APLS) stock fell -2.77% on Monday to $50.61 against a previous-day closing price of $52.05. With 1.23 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.32 million shares. During the session, the Biotechnology company that operates in wider Healthcare sector, reached to the highest price of $52.02 whereas the lowest price it dropped to was $50.28. The 52-week range on APLS shows that it touched its highest point at $70.00 and its lowest point at $33.32 during that stretch. It currently has a 1-year price target of $74.88. Beta for the stock currently stands at 1.22.

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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 APLS was down-trending over the past week, with a drop of -3.71%, but this was down by -4.15% over a month. Three-month performance dropped to -12.74% while six-month performance fell -4.13%. The stock gained 34.49% in the past year, while it has lost -2.13% so far this year. A look at the trailing 12-month EPS for APLS yields -6.24 with Next year EPS estimates of -5.34. For the next quarter, that number is -1.56. This implies an EPS growth rate of -92.70% for this year and 14.80% for next year.

Float and Shares Shorts:

At present, 109.13 million APLS shares are outstanding with a float of 93.52 million shares on hand for trading. On Oct 13, 2022, short shares totaled 8.78 million, which was 7.99% higher than short shares on Sep 14, 2022. In addition to Dr. Cedric Francois M.D., Ph.D. as the firm’s Co-Founder, Pres, CEO & Director, Dr. Pascal Deschatelets Ph.D. serves as its Co-Founder & Chief Scientific Officer.

Institutional Ownership:

Through their ownership of 89.03% of APLS’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 43.59% of APLS, in contrast to 43.12% held by mutual funds. Shares owned by individuals account for 31.69%. As the largest shareholder in APLS with 9.16% of the stake, Avoro Capital Advisor LLC holds 10,125,000 shares worth 10,125,000. A second-largest stockholder of APLS, Wellington Management Co. LLP, holds 9,957,416 shares, controlling over 9.01% of the firm’s shares. The Vanguard Group, Inc. is the third largest shareholder in APLS, holding 8,787,500 shares or 7.95% stake. With a 2.92% stake in APLS, the Vanguard Health Care Fund is the largest stakeholder. A total of 3,222,912 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 2.58% of APLS stock, is the second-largest Mutual Fund holder. It holds 2,853,130 shares valued at 147.54 million. Vanguard Small Cap Index Fund holds 2.19% of the stake in APLS, owning 2,421,786 shares worth 125.23 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for APLS since 16 analysts follow the stock currently. There are 11 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 4 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 APLS analysts setting a high price target of $123.00 and a low target of $40.00, the average target price over the next 12 months is $74.88. Based on these targets, APLS could surge 143.03% to reach the target high and fall by -20.96% to reach the target low. Reaching the average price target will result in a growth of 47.95% 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. APLS will report FY 2022 earnings on 02/27/2024. Analysts have provided yearly estimates in a range of -$5.58 being high and -$7.56 being low. For APLS, this leads to a yearly average estimate of -$6.27. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Apellis Pharmaceuticals Inc. surprised analysts by -$0.29 when it reported -$1.75 EPS against a consensus estimate of -$1.46. The surprise factor in the prior quarter was -$0.05. Based on analyst estimates, the high estimate for the next quarter is -$0.99 and the low estimate is -$2.91. The average estimate for the next quarter is thus -$1.51.

Summary of Insider Activity:

Insiders traded APLS stock several times over the past three months with 15 Buys and 20 Sells. In these transactions, 167,772 shares were bought while 100,919 shares were sold. The number of buy transactions has increased to 62 while that of sell transactions has risen to 109 over the past year. The total number of shares bought during that period was 533,263 while 467,710 shares were sold.

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