Verve Therapeutics Inc. (VERV) looking to reclaim success with recent performance

Verve Therapeutics Inc. (NASDAQ: VERV) stock jumped 4.68% on Monday to $22.60 against a previous-day closing price of $21.59. With 0.62 million shares changed hands, the volume of the stock remained lighter than its average volume of 0.98 million shares. During the session, the Biotechnology company that operates in wider Healthcare sector, reached to the highest price of $22.81 whereas the lowest price it dropped to was $21.10. The 52-week range on VERV shows that it touched its highest point at $43.00 and its lowest point at $10.70 during that stretch. It currently has a 1-year price target of $44.78.

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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 VERV was down-trending over the past week, with a drop of -1.48%, but this was up by 22.10% over a month. Three-month performance dropped to -27.86% while six-month performance fell -26.17%. The stock lost -31.89% in the past year, while it has gained 16.80% so far this year. A look at the trailing 12-month EPS for VERV yields -2.90 with Next year EPS estimates of -3.08. For the next quarter, that number is -0.77. This implies an EPS growth rate of -351.70% for this year and -1.70% for next year.

Float and Shares Shorts:

At present, 57.21 million VERV shares are outstanding with a float of 55.52 million shares on hand for trading. On Oct 13, 2022, short shares totaled 10.73 million, which was 17.90% higher than short shares on Sep 14, 2022. In addition to Dr. Sekar Kathiresan M.D. as the firm’s Co-Founder, CEO & Director, Dr. Anthony Philippakis M.D., Ph.D. serves as its Co-Founder & Scientific Advisory Board Member.

Institutional Ownership:

Through their ownership of 67.65% of VERV’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 43.78% of VERV, in contrast to 29.07% held by mutual funds. Shares owned by individuals account for 20.24%. As the largest shareholder in VERV with 9.58% of the stake, Fidelity Management & Research Co holds 5,902,017 shares worth 5,902,017. A second-largest stockholder of VERV, The Vanguard Group, Inc., holds 3,591,697 shares, controlling over 5.83% of the firm’s shares. ARK Investment Management LLC is the third largest shareholder in VERV, holding 3,393,859 shares or 5.51% stake. With a 5.94% stake in VERV, the SPDR S&P Biotech ETF is the largest stakeholder. A total of 3,656,010 shares are owned by the mutual fund manager. The ARK Genomic Revolution ETF, which owns about 4.51% of VERV stock, is the second-largest Mutual Fund holder. It holds 2,775,001 shares valued at 53.7 million. ARK Innovation ETF holds 2.46% of the stake in VERV, owning 1,515,423 shares worth 29.32 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for VERV since 10 analysts follow the stock currently. There are 7 analysts who recommend BUY ratings, while 1 suggest SELL ratings. Of the remaining analysts, 2 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 VERV analysts setting a high price target of $75.00 and a low target of $13.00, the average target price over the next 12 months is $44.78. Based on these targets, VERV could surge 231.86% to reach the target high and fall by -42.48% to reach the target low. Reaching the average price target will result in a growth of 98.14% 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. VERV will report FY 2022 earnings on 03/11/2024. Analysts have provided yearly estimates in a range of -$2.62 being high and -$3.12 being low. For VERV, this leads to a yearly average estimate of -$2.99. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Verve Therapeutics Inc. surprised analysts by -$0.05 when it reported -$0.79 EPS against a consensus estimate of -$0.74. The surprise factor in the prior quarter was -$0.22. Based on analyst estimates, the high estimate for the next quarter is -$0.66 and the low estimate is -$0.83. The average estimate for the next quarter is thus -$0.75.

Summary of Insider Activity:

Insiders traded VERV stock several times over the past three months with 3 Buys and 61 Sells. In these transactions, 47,875 shares were bought while 1,073,732 shares were sold. The number of buy transactions has increased to 17 while that of sell transactions has risen to 87 over the past year. The total number of shares bought during that period was 627,336 while 1,940,297 shares were sold.

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