A History of Outperforming Analyst Forecasts and Beating the Odds: Catalyst Pharmaceuticals Inc. (CPRX)

Catalyst Pharmaceuticals Inc. (NASDAQ: CPRX) stock jumped 9.21% on Tuesday to $16.12 against a previous-day closing price of $14.76. With 5.91 million shares changed hands, the volume of the stock remained heavier than its average volume of 2.62 million shares. During the session, the Biotechnology company that operates in wider Healthcare sector, reached to the highest price of $16.25 whereas the lowest price it dropped to was $14.71. The 52-week range on CPRX shows that it touched its highest point at $22.11 and its lowest point at $5.24 during that stretch. It currently has a 1-year price target of $20.70. Beta for the stock currently stands at 1.26.

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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 CPRX was down-trending over the past week, with a drop of -19.96%, but this was down by -17.33% over a month. Three-month performance surged to 20.25% while six-month performance rose 62.50%. The stock gained 190.97% in the past year, while it has lost -13.33% so far this year. A look at the trailing 12-month EPS for CPRX yields 0.61 with Next year EPS estimates of 1.21. For the next quarter, that number is 0.20. This implies an EPS growth rate of -48.10% for this year and 66.67% for next year.

Float and Shares Shorts:

At present, 103.32 million CPRX shares are outstanding with a float of 97.66 million shares on hand for trading. On Oct 13, 2022, short shares totaled 8.72 million, which was 8.48% higher than short shares on Sep 14, 2022. In addition to Mr. Patrick J. McEnany as the firm’s Co-Founder, Chairman, Pres & CEO, Ms. Alicia Grande C.M.A., CPA, CMA, CPA serves as its Chief Accounting Officer, VP, Treasurer & CFO.


Institutional Ownership:

Through their ownership of 75.00% of CPRX’s outstanding shares, institutional investors have majority control over the company. Other institutions hold — of CPRX, in contrast to — held by mutual funds. Shares owned by individuals account for –. With a 6.79% stake in CPRX, the iShares Core S&P Small Cap ETF is the largest stakeholder. A total of 7,070,917 shares are owned by the mutual fund manager. The SPDR S&P Biotech ETF, which owns about 4.64% of CPRX stock, is the second-largest Mutual Fund holder. It holds 4,832,253 shares valued at 89.88 million. Vanguard Total Stock Market Index holds 2.90% of the stake in CPRX, owning 3,020,411 shares worth 56.18 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for CPRX since 5 analysts follow the stock currently. There are 4 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 CPRX analysts setting a high price target of $24.00 and a low target of $15.50, the average target price over the next 12 months is $20.70. Based on these targets, CPRX could surge 48.88% to reach the target high and fall by -3.85% to reach the target low. Reaching the average price target will result in a growth of 28.41% 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. CPRX will report FY 2022 earnings on 03/14/2024. Analysts have provided yearly estimates in a range of $0.75 being high and $0.71 being low. For CPRX, this leads to a yearly average estimate of $0.73. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Catalyst Pharmaceuticals Inc. surprised analysts by $0.01 when it reported $0.20 EPS against a consensus estimate of $0.19. The surprise factor in the prior quarter was $0.03. Based on analyst estimates, the high estimate for the next quarter is $0.22 and the low estimate is $0.19. The average estimate for the next quarter is thus $0.20.

Summary of Insider Activity:

Insiders traded CPRX stock several times over the past three months with 18 Buys and 17 Sells. In these transactions, 990,293 shares were bought while 1,128,520 shares were sold. The number of buy transactions has increased to 41 while that of sell transactions has risen to 50 over the past year. The total number of shares bought during that period was 2,135,647 while 3,536,303 shares were sold.

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