Stocks of Spectrum Pharmaceuticals Inc. (SPPI) are poised to climb above their peers

Spectrum Pharmaceuticals Inc. (NASDAQ: SPPI) stock fell -3.45% on Monday to $0.56 against a previous-day closing price of $0.58. With 1.23 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.79 million shares. During the session, the Biotechnology company that operates in wider Healthcare sector, reached to the highest price of $0.6047 whereas the lowest price it dropped to was $0.5411. The 52-week range on SPPI shows that it touched its highest point at $1.57 and its lowest point at $0.31 during that stretch. It currently has a 1-year price target of $3.10. Beta for the stock currently stands at 2.05.

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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 SPPI was down-trending over the past week, with a drop of -6.51%, but this was up by 65.98% over a month. Three-month performance surged to 48.15% while six-month performance fell -34.88%. The stock lost -47.66% in the past year, while it has gained 51.97% so far this year. A look at the trailing 12-month EPS for SPPI yields -0.62 with Next year EPS estimates of -0.25. For the next quarter, that number is -0.12. This implies an EPS growth rate of 25.70% for this year and 47.90% for next year.

Float and Shares Shorts:

At present, 188.36 million SPPI shares are outstanding with a float of 184.03 million shares on hand for trading. On Dec 29, 2022, short shares totaled 5.93 million, which was 2.92% higher than short shares on Nov 29, 2022. In addition to Mr. Thomas J. Riga as the firm’s Pres, CEO & Director, Ms. Nora E. Brennan serves as its Exec. VP & Chief Financial Officer.

Institutional Ownership:

Through their ownership of 26.39% of SPPI’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 5.97% of SPPI, in contrast to 5.67% held by mutual funds. Shares owned by individuals account for 19.99%. As the largest shareholder in SPPI with 8.21% of the stake, Armistice Capital LLC holds 16,676,000 shares worth 16,676,000. A second-largest stockholder of SPPI, The Vanguard Group, Inc., holds 8,605,106 shares, controlling over 4.24% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in SPPI, holding 5,552,595 shares or 2.73% stake. With a 2.63% stake in SPPI, the Vanguard Total Stock Market Index is the largest stakeholder. A total of 5,348,837 shares are owned by the mutual fund manager. The Vanguard Extended Market Index Fu, which owns about 1.13% of SPPI stock, is the second-largest Mutual Fund holder. It holds 2,285,849 shares valued at 0.84 million. Fidelity Extended Market Index Fu holds 0.40% of the stake in SPPI, owning 804,498 shares worth 0.3 million.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Sep 29, 2022, SPPI reported revenue of $0.00 and operating income of -$25.39M. The EBITDA in the recently reported quarter was -$25.32M and diluted EPS was -$0.17.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for SPPI since 4 analysts follow the stock currently. There are 3 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 SPPI analysts setting a high price target of $4.00 and a low target of $1.00, the average target price over the next 12 months is $3.13. Based on these targets, SPPI could surge 614.29% to reach the target high and rise by 78.57% to reach the target low. Reaching the average price target will result in a growth of 458.93% 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. SPPI will report FY 2022 earnings on 03/15/2024. Analysts have provided yearly estimates in a range of -$0.44 being high and -$0.54 being low. For SPPI, this leads to a yearly average estimate of -$0.48. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Spectrum Pharmaceuticals Inc. surprised analysts by $0.03 when it reported -$0.12 EPS against a consensus estimate of -$0.15. The surprise factor in the prior quarter was -$0.02. Based on analyst estimates, the high estimate for the next quarter is -$0.09 and the low estimate is -$0.16. The average estimate for the next quarter is thus -$0.12.

Summary of Insider Activity:

Insiders traded SPPI stock several times over the past three months with 5 Buys and 1 Sells. In these transactions, 1,450,000 shares were bought while 23,929 shares were sold. The number of buy transactions has increased to 16 while that of sell transactions has risen to 25 over the past year. The total number of shares bought during that period was 2,982,811 while 345,762 shares were sold.

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