Avadel Pharmaceuticals plc (AVDL) can make a big difference with a little luck

Avadel Pharmaceuticals plc (NASDAQ: AVDL) stock jumped 0.08% on Friday to $12.27 against a previous-day closing price of $12.26. With 0.55 million shares changed hands, the volume of the stock remained lighter than its average volume of 0.76 million shares. During the session, the Drug Manufacturers – Specialty & Generic company that operates in wider Healthcare sector, reached to the highest price of $12.57 whereas the lowest price it dropped to was $11.90. The 52-week range on AVDL shows that it touched its highest point at $16.85 and its lowest point at $4.61 during that stretch. It currently has a 1-year price target of $19.89. Beta for the stock currently stands at 1.47.

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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 AVDL was down-trending over the past week, with a drop of -4.88%, but this was down by -6.19% over a month. Three-month performance dropped to -17.09% while six-month performance rose 34.98%. The stock gained 100.49% in the past year, while it has gained 71.37% so far this year. A look at the trailing 12-month EPS for AVDL yields -2.09 with Next year EPS estimates of -0.35. For the next quarter, that number is -0.39. This implies an EPS growth rate of -73.20% for this year and 82.10% for next year. EPS is expected to grow by 15.00% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -28.30%.

Float and Shares Shorts:

At present, 77.25 million AVDL shares are outstanding with a float of 35.64 million shares on hand for trading. On Aug 30, 2023, short shares totaled 2.61 million, which was 2.92% higher than short shares on Jul 30, 2023. In addition to Mr. Gregory J. Divis Jr. as the firm’s CEO & Director, Mr. Thomas S. McHugh serves as its Sr. VP & CFO.

Institutional Ownership:

Through their ownership of 63.74% of AVDL’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 7.82% of AVDL, in contrast to 45.12% held by mutual funds. Shares owned by individuals account for 10.71%. As the largest shareholder in AVDL with 10.57% of the stake, Janus Henderson Investors US LLC holds 9,443,642 shares worth 9,443,642. A second-largest stockholder of AVDL, RTW Investments LP, holds 6,810,641 shares, controlling over 7.62% of the firm’s shares. Tontine Associates LLC is the third largest shareholder in AVDL, holding 5,396,060 shares or 6.04% stake. With a 3.99% stake in AVDL, the Polar Capital Funds Plc – Healthc is the largest stakeholder. A total of 3,562,490 shares are owned by the mutual fund manager. The Janus Henderson Capital Funds Plc, which owns about 2.21% of AVDL stock, is the second-largest Mutual Fund holder. It holds 1,973,905 shares valued at 26.67 million. Janus Henderson Global Life Scien holds 2.00% of the stake in AVDL, owning 1,784,928 shares worth 24.11 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, AVDL reported revenue of $0.00 and operating income of -$26.34M. The EBITDA in the recently reported quarter was -$26.10M and diluted EPS was -$1.07.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for AVDL 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 AVDL analysts setting a high price target of $26.00 and a low target of $17.00, the average target price over the next 12 months is $19.89. Based on these targets, AVDL could surge 111.9% to reach the target high and rise by 38.55% to reach the target low. Reaching the average price target will result in a growth of 62.1% 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 AVDL 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 2 while that of sell transactions has remained unmoved to 0 over the past year. The total number of shares bought during that period was 33,000 while 0 shares were sold.

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