Day One Biopharmaceuticals Inc. (DAWN) Clearly Signals Buy-Into the Stock: Don’t ignore the signals

Day One Biopharmaceuticals Inc. (NASDAQ: DAWN) stock fell -2.34% on Tuesday to $12.96 against a previous-day closing price of $13.27. With 0.87 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.83 million shares. During the session, the Biotechnology company that operates in wider Healthcare sector, reached to the highest price of $13.91 whereas the lowest price it dropped to was $12.90. The 52-week range on DAWN shows that it touched its highest point at $28.35 and its lowest point at $5.44 during that stretch. It currently has a 1-year price target of $39.56.

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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 DAWN was down-trending over the past week, with a drop of -0.84%, but this was down by -5.47% over a month. Three-month performance dropped to -33.37% while six-month performance fell -39.27%. The stock gained 80.00% in the past year, while it has lost -39.78% so far this year. A look at the trailing 12-month EPS for DAWN yields -2.29 with Next year EPS estimates of -2.05. For the next quarter, that number is -0.62. This implies an EPS growth rate of 53.00% for this year and 17.30% for next year.

Float and Shares Shorts:

At present, 71.97 million DAWN shares are outstanding with a float of 51.85 million shares on hand for trading. On Apr 27, 2023, short shares totaled 9.12 million, which was 12.40% higher than short shares on Mar 30, 2023. In addition to Dr. Jeremy Bender M.B.A., Ph.D. as the firm’s CEO, Pres & Director, Dr. Samuel C. Blackman M.D., Ph.D. serves as its Co-Founder and Head of R&D.

Institutional Ownership:

Through their ownership of 82.30% of DAWN’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 37.27% of DAWN, in contrast to 32.42% held by mutual funds. Shares owned by individuals account for 31.42%. As the largest shareholder in DAWN with 9.57% of the stake, RA Capital Management LP holds 7,040,622 shares worth 7,040,622. A second-largest stockholder of DAWN, Fidelity Management & Research Co, holds 5,566,365 shares, controlling over 7.56% of the firm’s shares. Franklin Advisers, Inc. is the third largest shareholder in DAWN, holding 3,385,584 shares or 4.60% stake. With a 2.25% stake in DAWN, the FTIF SICAV – Biotechnology Discov is the largest stakeholder. A total of 1,653,657 shares are owned by the mutual fund manager. The SPDR S&P Biotech ETF, which owns about 2.24% of DAWN stock, is the second-largest Mutual Fund holder. It holds 1,648,804 shares valued at 20.45 million. Vanguard Total Stock Market ETF holds 2.01% of the stake in DAWN, owning 1,481,167 shares worth 18.37 million.

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 Mar 30, 2023, DAWN reported revenue of $0.00 and operating income of -$36.72M. The EBITDA in the recently reported quarter was -$36.59M and diluted EPS was -$0.60.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for DAWN since 0 analysts follow the stock currently. In the same way, a target price assigned to a stock can also reveal much about its potential. With DAWN analysts setting a high price target of $63.00 and a low target of $9.00, the average target price over the next 12 months is $39.56. Based on these targets, DAWN could surge 386.11% to reach the target high and fall by -30.56% to reach the target low. Reaching the average price target will result in a growth of 205.25% 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.

Summary of Insider Activity:

Insiders traded DAWN stock several times over the past three months with 0 Buys and 3 Sells. In these transactions, 0 shares were bought while 47,500 shares were sold. The number of buy transactions has increased to 15 while that of sell transactions has risen to 100 over the past year. The total number of shares bought during that period was 2,772,391 while 4,934,883 shares were sold.

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