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

Syndax Pharmaceuticals Inc. (NASDAQ: SNDX) stock jumped 2.87% on Tuesday to $27.23 against a previous-day closing price of $26.47. With 0.68 million shares changed hands, the volume of the stock remained lighter than its average volume of 0.87 million shares. During the session, the Biotechnology company that operates in wider Healthcare sector, reached to the highest price of $27.30 whereas the lowest price it dropped to was $26.27. The 52-week range on SNDX shows that it touched its highest point at $27.68 and its lowest point at $13.27 during that stretch. It currently has a 1-year price target of $33.14. Beta for the stock currently stands at 1.05.

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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 SNDX was up-trending over the past week, with a rise of 2.91%, but this was up by 12.89% over a month. Three-month performance surged to 15.63% while six-month performance rose 28.56%. The stock gained 68.92% in the past year, while it has gained 6.99% so far this year. A look at the trailing 12-month EPS for SNDX yields -0.22 with Next year EPS estimates of -2.48. For the next quarter, that number is -0.65. This implies an EPS growth rate of 124.90% for this year and 2.80% for next year.

Float and Shares Shorts:

At present, 60.67 million SNDX shares are outstanding with a float of 57.43 million shares on hand for trading. On Oct 13, 2022, short shares totaled 4.48 million, which was 7.91% higher than short shares on Sep 14, 2022. In addition to Mr. Michael A. Metzger M.B.A. as the firm’s CEO & Director, Dr. Briggs W. Morrison M.D. serves as its Pres, Head of R&D and Director.

Institutional Ownership:

Through their ownership of 102.91% of SNDX’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 63.19% of SNDX, in contrast to 31.98% held by mutual funds. Shares owned by individuals account for 11.27%. As the largest shareholder in SNDX with 13.26% of the stake, Wellington Management Co. LLP holds 7,983,442 shares worth 7,983,442. A second-largest stockholder of SNDX, Avidity Partners Management LP, holds 5,586,900 shares, controlling over 9.28% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in SNDX, holding 3,599,868 shares or 5.98% stake. With a 4.32% stake in SNDX, the SPDR S&P Biotech ETF is the largest stakeholder. A total of 2,599,737 shares are owned by the mutual fund manager. The Vanguard Total Stock Market Index, which owns about 3.20% of SNDX stock, is the second-largest Mutual Fund holder. It holds 1,926,725 shares valued at 49.04 million. iShares Russell 2000 ETF holds 1.96% of the stake in SNDX, owning 1,181,994 shares worth 30.08 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for SNDX since 9 analysts follow the stock currently. There are 7 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 SNDX analysts setting a high price target of $41.00 and a low target of $29.00, the average target price over the next 12 months is $34.13. Based on these targets, SNDX could surge 50.57% to reach the target high and rise by 6.5% to reach the target low. Reaching the average price target will result in a growth of 25.34% 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. SNDX will report FY 2022 earnings on 02/28/2024. Analysts have provided yearly estimates in a range of -$2.36 being high and -$2.86 being low. For SNDX, this leads to a yearly average estimate of -$2.54. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Syndax Pharmaceuticals Inc. surprised analysts by $0.06 when it reported -$0.58 EPS against a consensus estimate of -$0.64. The surprise factor in the prior quarter was $0.02. Based on analyst estimates, the high estimate for the next quarter is -$0.58 and the low estimate is -$0.71. The average estimate for the next quarter is thus -$0.65.

Summary of Insider Activity:

Insiders traded SNDX stock several times over the past three months with 3 Buys and 3 Sells. In these transactions, 25,000 shares were bought while 25,000 shares were sold. The number of buy transactions has increased to 49 while that of sell transactions has risen to 39 over the past year. The total number of shares bought during that period was 1,082,136 while 905,779 shares were sold.

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