It makes sense and dollars to buy Rocket Pharmaceuticals Inc. (RCKT) stock

Rocket Pharmaceuticals Inc. (NASDAQ: RCKT) stock jumped 1.29% on Monday to $20.45 against a previous-day closing price of $20.19. With 0.84 million shares changed hands, the volume of the stock remained lighter than its average volume of 0.92 million shares. During the session, the Biotechnology company that operates in wider Healthcare sector, reached to the highest price of $20.69 whereas the lowest price it dropped to was $19.55. The 52-week range on RCKT shows that it touched its highest point at $23.48 and its lowest point at $7.57 during that stretch. It currently has a 1-year price target of $51.85. Beta for the stock currently stands at 1.21.

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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 RCKT was down-trending over the past week, with a drop of -8.58%, but this was down by -3.26% over a month. Three-month performance surged to 16.99% while six-month performance rose 22.53%. The stock gained 25.15% in the past year, while it has gained 4.50% so far this year. A look at the trailing 12-month EPS for RCKT yields -3.06 with Next year EPS estimates of -2.89. For the next quarter, that number is -0.77. This implies an EPS growth rate of -6.00% for this year and 5.60% for next year.

Float and Shares Shorts:

At present, 78.73 million RCKT shares are outstanding with a float of 75.33 million shares on hand for trading. On Oct 13, 2022, short shares totaled 9.45 million, which was 12.49% higher than short shares on Sep 14, 2022. In addition to Dr. Gaurav D. Shah M.D. as the firm’s CEO & Director, Ms. Kinnari Patel M.B.A., MBA, Pharm.D., PharmD serves as its Pres & COO.

Institutional Ownership:

Through their ownership of 93.47% of RCKT’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 57.17% of RCKT, in contrast to 31.31% held by mutual funds. Shares owned by individuals account for 25.06%. As the largest shareholder in RCKT with 22.39% of the stake, RTW Investments LP holds 17,628,567 shares worth 17,628,567. A second-largest stockholder of RCKT, BlackRock Fund Advisors, holds 3,532,402 shares, controlling over 4.49% of the firm’s shares. Wellington Management Co. LLP is the third largest shareholder in RCKT, holding 3,478,412 shares or 4.42% stake. With a 3.66% stake in RCKT, the SPDR S&P Biotech ETF is the largest stakeholder. A total of 2,883,701 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 2.13% of RCKT stock, is the second-largest Mutual Fund holder. It holds 1,677,825 shares valued at 32.84 million. Vanguard Health Care Fund holds 1.52% of the stake in RCKT, owning 1,199,337 shares worth 23.47 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for RCKT since 15 analysts follow the stock currently. There are 13 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 0 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 RCKT analysts setting a high price target of $75.00 and a low target of $33.00, the average target price over the next 12 months is $51.77. Based on these targets, RCKT could surge 266.75% to reach the target high and rise by 61.37% to reach the target low. Reaching the average price target will result in a growth of 153.15% 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. RCKT will report FY 2022 earnings on 02/22/2024. Analysts have provided yearly estimates in a range of -$2.15 being high and -$3.40 being low. For RCKT, this leads to a yearly average estimate of -$3.08. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Rocket Pharmaceuticals Inc. surprised analysts by -$0.08 when it reported -$0.87 EPS against a consensus estimate of -$0.79. The surprise factor in the prior quarter was -$0.14. Based on analyst estimates, the high estimate for the next quarter is -$0.48 and the low estimate is -$1.00. The average estimate for the next quarter is thus -$0.80.

Summary of Insider Activity:

Insiders traded RCKT stock several times over the past three months with 0 Buys and 0 Sells. In these transactions, 0 shares were bought while 0 shares were sold. The number of buy transactions has increased to 2 while that of sell transactions has risen to 8 over the past year. The total number of shares bought during that period was 1,377,932 while 180,000 shares were sold.

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