An analyst sees good growth prospects for Cerevel Therapeutics Holdings Inc. (CERE)

Cerevel Therapeutics Holdings Inc. (NASDAQ: CERE) stock fell -1.19% on Thursday to $22.33 against a previous-day closing price of $22.60. With 0.92 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.64 million shares. During the session, the Biotechnology company that operates in wider Healthcare sector, reached to the highest price of $23.03 whereas the lowest price it dropped to was $22.25. The 52-week range on CERE shows that it touched its highest point at $35.98 and its lowest point at $20.49 during that stretch. It currently has a 1-year price target of $34.12. Beta for the stock currently stands at 1.44.

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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 CERE was down-trending over the past week, with a drop of -7.07%, but this was up by 2.62% over a month. Three-month performance dropped to -34.65% while six-month performance fell -8.67%. The stock lost -24.38% in the past year, while it has lost -29.20% so far this year. A look at the trailing 12-month EPS for CERE yields -2.55 with Next year EPS estimates of -2.70. For the next quarter, that number is -0.64. This implies an EPS growth rate of -40.80% for this year and -3.80% for next year.

Float and Shares Shorts:

At present, 157.05 million CERE shares are outstanding with a float of 59.54 million shares on hand for trading. On Aug 30, 2023, short shares totaled 5.44 million, which was 3.45% higher than short shares on Jul 30, 2023. In addition to Dr. N. Anthony Coles Jr., M.P.H. as the firm’s Exec. Chairman, Mr. Mark Bodenrader serves as its VP of Fin. & Chief Accounting Officer.

Institutional Ownership:

Other institutions hold 98.68% of CERE, in contrast to 25.81% held by mutual funds. Shares owned by individuals account for 23.96%. As the largest shareholder in CERE with 14.55% of the stake, Fidelity Management & Research Co holds 22,913,123 shares worth 22,913,123. A second-largest stockholder of CERE, Perceptive Advisors LLC, holds 10,088,385 shares, controlling over 6.41% of the firm’s shares. The Vanguard Group, Inc. is the third largest shareholder in CERE, holding 5,480,716 shares or 3.48% stake. With a 3.63% stake in CERE, the Fidelity Growth Company Fund is the largest stakeholder. A total of 5,715,686 shares are owned by the mutual fund manager. The T Rowe Price Health Sciences Fund, which owns about 1.23% of CERE stock, is the second-largest Mutual Fund holder. It holds 1,929,050 shares valued at 59.01 million. Fidelity Growth Company K6 Fund holds 1.16% of the stake in CERE, owning 1,820,533 shares worth 55.69 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 Jun 29, 2023, CERE reported revenue of $0.00 and operating income of -$93.01M. The EBITDA in the recently reported quarter was -$93.01M and diluted EPS was -$0.61.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for CERE 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 CERE analysts setting a high price target of $42.00 and a low target of $24.00, the average target price over the next 12 months is $34.13. Based on these targets, CERE could surge 88.09% to reach the target high and rise by 7.48% to reach the target low. Reaching the average price target will result in a growth of 52.84% 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 CERE stock several times over the past three months with 3 Buys and 1 Sells. In these transactions, 155,737 shares were bought while 50,000 shares were sold. The number of buy transactions has increased to 22 while that of sell transactions has risen to 22 over the past year. The total number of shares bought during that period was 580,162 while 1,813,670 shares were sold.

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