This trade activity should not be overlooked: Sonnet BioTherapeutics Holdings Inc. (SONN)

Sonnet BioTherapeutics Holdings Inc. (NASDAQ: SONN) stock jumped 7.34% on Tuesday to $1.17 against a previous-day closing price of $1.09. With 0.2 million shares changed hands, the volume of the stock remained lighter than its average volume of 4.62 million shares. During the session, the Biotechnology company that operates in wider Healthcare sector, reached to the highest price of $1.1900 whereas the lowest price it dropped to was $1.0800. The 52-week range on SONN shows that it touched its highest point at $9.37 and its lowest point at $0.91 during that stretch. It currently has a 1-year price target of $18.90. Beta for the stock currently stands at 0.59.

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Price Performance and Earnings:

The stock lost -74.13% in the past year, while it has gained 1.74% so far this year. A look at the trailing 12-month EPS for SONN yields -6.84 with Next year EPS estimates of -0.95. For the next quarter, that number is -1.10. This implies an EPS growth rate of 52.00% for this year and 63.00% for next year.

Float and Shares Shorts:

At present, 7.93 million SONN shares are outstanding with a float of 7.23 million shares on hand for trading. On Dec 29, 2022, short shares totaled 0.13 million, which was 1.68% higher than short shares on Nov 29, 2022. In addition to Dr. Pankaj Mohan Ph.D. as the firm’s Founder, Chairman. CEO & Pres, Dr. John K. Cini Ph.D. serves as its Chief Scientific Officer & Co-Founder.

Institutional Ownership:

Through their ownership of 3.25% of SONN’s outstanding shares, institutional investors have minority control over the company. Other institutions hold 2.74% of SONN, in contrast to 0.51% held by mutual funds. Shares owned by individuals account for –. As the largest shareholder in SONN with 1.69% of the stake, The Vanguard Group, Inc. holds 133,811 shares worth 133,811. A second-largest stockholder of SONN, Geode Capital Management LLC, holds 51,970 shares, controlling over 0.66% of the firm’s shares. Virtu Financial BD LLC is the third largest shareholder in SONN, holding 26,914 shares or 0.34% stake. With a 0.23% stake in SONN, the Fidelity Extended Market Index Fu is the largest stakeholder. A total of 18,597 shares are owned by the mutual fund manager. The Vanguard Extended Market Index Fu, which owns about 0.23% of SONN stock, is the second-largest Mutual Fund holder. It holds 18,057 shares valued at 20766.0. Fidelity Series Total Market Inde holds 0.04% of the stake in SONN, owning 3,435 shares worth 3950.0.

An Overview of Recent Financials:

Understanding a company as a customer does not mean you will understand it as an investor. The wise investor uses quantitative research to analyze metrics such as revenue, net income, and earnings. In its fiscal quarter reported on Sep 29, 2022, SONN reported revenue of $62.07k and operating income of -$7.87M. The EBITDA in the recently reported quarter was -$7.83M and diluted EPS was -$1.82.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for SONN since 2 analysts follow the stock currently. There are 2 analysts who recommend BUY ratings, while 0 suggest SELL ratings. Of the remaining analysts, 0 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 SONN analysts setting a high price target of $22.00 and a low target of $6.70, the average target price over the next 12 months is $14.35. Based on these targets, SONN could surge 1780.34% to reach the target high and rise by 472.65% to reach the target low. Reaching the average price target will result in a growth of 1126.5% 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. SONN will report FY 2023 earnings on 11/29/2023. Analysts have provided yearly estimates in a range of -$2.57 being high and -$4.91 being low. For SONN, this leads to a yearly average estimate of -$3.74. The earnings surprise of a firm occurs when the actual results change from the consensus earnings estimate. Sonnet BioTherapeutics Holdings Inc. surprised analysts by -$0.08 when it reported -$1.59 EPS against a consensus estimate of -$1.51. The surprise factor in the prior quarter was $0.13. Based on analyst estimates, the high estimate for the next quarter is -$1.10 and the low estimate is -$1.15. The average estimate for the next quarter is thus -$1.13.

Summary of Insider Activity:

Insiders traded SONN stock several times over the past three months with 9 Buys and 0 Sells. In these transactions, 152,609 shares were bought while 0 shares were sold. The number of buy transactions has increased to 9 while that of sell transactions has risen to 1 over the past year. The total number of shares bought during that period was 152,609 while 4,507 shares were sold.

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