There is no doubt that Nektar Therapeutics (NKTR) ticks all the boxes.

Nektar Therapeutics (NASDAQ: NKTR) stock fell -3.45% on Monday to $2.24 against a previous-day closing price of $2.32. With 0.94 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.57 million shares. During the session, the Biotechnology company that operates in wider Healthcare sector, reached to the highest price of $2.3300 whereas the lowest price it dropped to was $2.2200. The 52-week range on NKTR shows that it touched its highest point at $11.90 and its lowest point at $1.99 during that stretch. It currently has a 1-year price target of $4.41. Beta for the stock currently stands at 0.93.

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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 NKTR was down-trending over the past week, with a drop of -11.11%, but this was down by -8.20% over a month. Three-month performance dropped to -33.13% while six-month performance fell -39.13%. The stock lost -80.98% in the past year, while it has lost -0.88% so far this year. A look at the trailing 12-month EPS for NKTR yields -2.44 with Next year EPS estimates of -0.93. For the next quarter, that number is -0.45. This implies an EPS growth rate of -14.80% for this year and 56.30% for next year. EPS is expected to decline by -7.30% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -21.00%.

Float and Shares Shorts:

At present, 187.64 million NKTR shares are outstanding with a float of 185.37 million shares on hand for trading. On Oct 13, 2022, short shares totaled 17.39 million, which was 9.28% higher than short shares on Sep 14, 2022. In addition to Mr. Howard W. Robin as the firm’s CEO, Pres & Director, Mr. Mark A. Wilson serves as its Chief Legal Officer & Sec.

Institutional Ownership:

Through their ownership of 98.81% of NKTR’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 73.00% of NKTR, in contrast to 3.22% held by mutual funds. Shares owned by individuals account for 20.55%. As the largest shareholder in NKTR with 19.04% of the stake, Invesco Advisers, Inc. holds 35,778,658 shares worth 35,778,658. A second-largest stockholder of NKTR, BlackRock Fund Advisors, holds 30,124,010 shares, controlling over 16.03% of the firm’s shares. The Vanguard Group, Inc. is the third largest shareholder in NKTR, holding 22,875,214 shares or 12.17% stake. With a 19.03% stake in NKTR, the Invesco Global Opportunities Fund is the largest stakeholder. A total of 35,770,000 shares are owned by the mutual fund manager. The iShares Core S&P Small Cap ETF, which owns about 7.39% of NKTR stock, is the second-largest Mutual Fund holder. It holds 13,890,022 shares valued at 31.39 million. Vanguard Health Care Fund holds 6.06% of the stake in NKTR, owning 11,383,721 shares worth 25.73 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for NKTR since 9 analysts follow the stock currently. There are 0 analysts who recommend BUY ratings, while 1 suggest SELL ratings. Of the remaining analysts, 7 believe that the stock is worth HOLDING, 0 give it an OVERWEIGHT rating, and 1 thinks that it’s UNDERWEIGHT. In the same way, a target price assigned to a stock can also reveal much about its potential. With NKTR analysts setting a high price target of $6.00 and a low target of $3.00, the average target price over the next 12 months is $4.41. Based on these targets, NKTR could surge 167.86% to reach the target high and rise by 33.93% to reach the target low. Reaching the average price target will result in a growth of 96.87% 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. NKTR will report FY 2022 earnings on 02/27/2024. Analysts have provided yearly estimates in a range of -$1.91 being high and -$2.40 being low. For NKTR, this leads to a yearly average estimate of -$2.13. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Nektar Therapeutics surprised analysts by $0.14 when it reported -$0.31 EPS against a consensus estimate of -$0.45. The surprise factor in the prior quarter was $0.12. Based on analyst estimates, the high estimate for the next quarter is -$0.24 and the low estimate is -$0.55. The average estimate for the next quarter is thus -$0.45.

Summary of Insider Activity:

Insiders traded NKTR stock several times over the past three months with 0 Buys and 4 Sells. In these transactions, 0 shares were bought while 71,259 shares were sold. The number of buy transactions has increased to 15 while that of sell transactions has risen to 25 over the past year. The total number of shares bought during that period was 1,081,001 while 340,318 shares were sold.

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