An analyst sees good growth prospects for Innoviva Inc. (INVA)

Innoviva Inc. (NASDAQ: INVA) stock fell -3.94% on Tuesday to $12.43 against a previous-day closing price of $12.94. With 1.26 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.58 million shares. During the session, the Biotechnology company that operates in wider Healthcare sector, reached to the highest price of $12.94 whereas the lowest price it dropped to was $12.10. The 52-week range on INVA shows that it touched its highest point at $20.71 and its lowest point at $11.56 during that stretch. It currently has a 1-year price target of $17.17. Beta for the stock currently stands at 0.55.

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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 INVA was down-trending over the past week, with a drop of -7.38%, but this was down by -6.40% over a month. Three-month performance dropped to -7.93% while six-month performance fell -14.63%. The stock lost -23.13% in the past year, while it has lost -6.19% so far this year. A look at the trailing 12-month EPS for INVA yields 3.19 with Next year EPS estimates of 1.46. For the next quarter, that number is 0.29. This implies an EPS growth rate of 42.20% for this year and -61.38% for next year. EPS is expected to grow by 19.34% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of 42.80%.

Float and Shares Shorts:

At present, 69.73 million INVA shares are outstanding with a float of 69.19 million shares on hand for trading. On Oct 13, 2022, short shares totaled 10.21 million, which was 14.64% higher than short shares on Sep 14, 2022. In addition to Mr. Pavel Raifeld C.F.A. as the firm’s Chief Exec. Officer, Ms. Marianne Zhen CPA serves as its Chief Accounting Officer & Sec.

Institutional Ownership:

Through their ownership of 116.05% of INVA’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 58.09% of INVA, in contrast to 53.92% held by mutual funds. Shares owned by individuals account for 4.76%. As the largest shareholder in INVA with 13.54% of the stake, BlackRock Fund Advisors holds 9,447,948 shares worth 9,447,948. A second-largest stockholder of INVA, The Vanguard Group, Inc., holds 6,835,219 shares, controlling over 9.80% of the firm’s shares. Sarissa Capital Management LP is the third largest shareholder in INVA, holding 6,614,000 shares or 9.48% stake. With a 6.65% stake in INVA, the iShares Core S&P Small Cap ETF is the largest stakeholder. A total of 4,637,932 shares are owned by the mutual fund manager. The Putnam Global Health Care Fund, which owns about 5.85% of INVA stock, is the second-largest Mutual Fund holder. It holds 4,078,514 shares valued at 54.04 million. Vanguard Total Stock Market Index holds 2.76% of the stake in INVA, owning 1,926,684 shares worth 25.53 million.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for INVA since 3 analysts follow the stock currently. There are 1 analysts who recommend BUY ratings, while 1 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 INVA analysts setting a high price target of $22.50 and a low target of $13.00, the average target price over the next 12 months is $16.83. Based on these targets, INVA could surge 81.01% to reach the target high and rise by 4.59% to reach the target low. Reaching the average price target will result in a growth of 35.4% 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. INVA will report FY 2022 earnings on 02/08/2024. Analysts have provided yearly estimates in a range of $4.09 being high and $3.34 being low. For INVA, this leads to a yearly average estimate of $3.71. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Innoviva Inc. surprised analysts by $1.27 when it reported $2.80 EPS against a consensus estimate of $1.53. The surprise factor in the prior quarter was -$1.42. Based on analyst estimates, the high estimate for the next quarter is $0.41 and the low estimate is $0.04. The average estimate for the next quarter is thus $0.23.

Summary of Insider Activity:

Insiders traded INVA stock several times over the past three months with 1 Buys and 1 Sells. In these transactions, 433 shares were bought while 828 shares were sold. The number of buy transactions has increased to 9 while that of sell transactions has risen to 4 over the past year. The total number of shares bought during that period was 84,840 while 4,763 shares were sold.

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