Adversity is less terrifying than hope: Amarin Corporation plc (AMRN)

Amarin Corporation plc (NASDAQ: AMRN) stock jumped 1.00% on Friday to $1.01 against a previous-day closing price of $1.00. With 1.15 million shares changed hands, the volume of the stock remained lighter than its average volume of 2.57 million shares. During the session, the Drug Manufacturers – General company that operates in wider Healthcare sector, reached to the highest price of $1.0100 whereas the lowest price it dropped to was $0.9881. The 52-week range on AMRN shows that it touched its highest point at $2.23 and its lowest point at $0.95 during that stretch. It currently has a 1-year price target of $2.45. Beta for the stock currently stands at 1.88.

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Price Performance and Earnings:

Three-month performance dropped to -15.13% while six-month performance fell -38.04%. The stock lost -17.21% in the past year, while it has lost -16.53% so far this year. A look at the trailing 12-month EPS for AMRN yields -0.09 with Next year EPS estimates of -0.17. For the next quarter, that number is -0.04. This implies an EPS growth rate of 30.80% for this year and 5.60% for next year. EPS is expected to grow by 38.90% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -3.40%.

Float and Shares Shorts:

At present, 407.85 million AMRN shares are outstanding with a float of 360.90 million shares on hand for trading. On Aug 30, 2023, short shares totaled 16.5 million, which was 4.05% higher than short shares on Jul 30, 2023. In addition to Mr. Thomas Charles Reilly as the firm’s Chief Financial Officer, Dr. Steven B. Ketchum Ph.D. serves as its Pres of R&D and Chief Scientific Officer.

Institutional Ownership:

Other institutions hold 3.30% of AMRN, in contrast to 29.46% held by mutual funds. Shares owned by individuals account for 2.17%. As the largest shareholder in AMRN with 7.19% of the stake, Sarissa Capital Management LP holds 29,300,000 shares worth 29,300,000. A second-largest stockholder of AMRN, Kynam Capital Management LP, holds 12,000,000 shares, controlling over 2.94% of the firm’s shares. Morgan Stanley & Co. LLC is the third largest shareholder in AMRN, holding 10,887,204 shares or 2.67% stake. With a 0.93% stake in AMRN, the 13D Activist Fund is the largest stakeholder. A total of 3,808,100 shares are owned by the mutual fund manager. The AlphaCentric LifeSci Healthcare F, which owns about 0.14% of AMRN stock, is the second-largest Mutual Fund holder. It holds 585,000 shares valued at 0.61 million. ClearBridge Small Cap Value Fund holds 0.13% of the stake in AMRN, owning 531,070 shares worth 0.56 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, AMRN reported revenue of $94.44M and operating income of -$52.62M. The EBITDA in the recently reported quarter was -$41.62M and diluted EPS was -$0.18.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for AMRN 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 AMRN analysts setting a high price target of $5.00 and a low target of $1.00, the average target price over the next 12 months is $2.45. Based on these targets, AMRN could surge 395.05% to reach the target high and fall by -0.99% to reach the target low. Reaching the average price target will result in a growth of 142.57% 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 AMRN stock several times over the past three months with 0 Buys and 0 Sells. In these transactions, 0 shares were bought while 0 shares were sold. The number of buy transactions has increased to 10 while that of sell transactions has risen to 11 over the past year. The total number of shares bought during that period was 518,662 while 219,698 shares were sold.

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