Erasca Inc. (NASDAQ: ERAS) stock fell -0.77% on Friday to $2.58 against a previous-day closing price of $2.60. With 1.53 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.56 million shares. The 52-week range on ERAS shows that it touched its highest point at $9.25 and its lowest point at $2.45 during that stretch. It currently has a 1-year price target of $9.67. Beta for the stock currently stands at 1.10.
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 ERAS was down-trending over the past week, with a drop of -1.15%, but this was up by 3.20% over a month. Three-month performance dropped to -6.86% while six-month performance fell -20.12%. The stock lost -71.30% in the past year, while it has lost -40.14% so far this year. A look at the trailing 12-month EPS for ERAS yields -1.79 with Next year EPS estimates of -1.13. For the next quarter, that number is -0.23. This implies an EPS growth rate of -7.40% for this year and -16.50% for next year.
Float and Shares Shorts:
At present, 150.04 million ERAS shares are outstanding with a float of 110.95 million shares on hand for trading. On Aug 30, 2023, short shares totaled 8.92 million, which was 5.91% higher than short shares on Jul 30, 2023. In addition to Dr. Jonathan E. Lim M.D. as the firm’s Co-Founder, Chairman & CEO, Dr. David M. Chacko M.D. serves as its CFO & Chief Bus. Officer.
Through their ownership of 63.51% of ERAS’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 30.86% of ERAS, in contrast to 29.62% held by mutual funds. Shares owned by individuals account for 10.70%. As the largest shareholder in ERAS with 7.16% of the stake, Cormorant Asset Management LP holds 10,813,246 shares worth 10,813,246. A second-largest stockholder of ERAS, Armistice Capital LLC, holds 7,856,000 shares, controlling over 5.20% of the firm’s shares. The Vanguard Group, Inc. is the third largest shareholder in ERAS, holding 6,513,798 shares or 4.31% stake. With a 1.30% stake in ERAS, the Vanguard Small Cap Index Fund is the largest stakeholder. A total of 1,955,923 shares are owned by the mutual fund manager. The iShares Russell 2000 ETF, which owns about 1.22% of ERAS stock, is the second-largest Mutual Fund holder. It holds 1,839,662 shares valued at 4.76 million. Vanguard Total Stock Market ETF holds 1.21% of the stake in ERAS, owning 1,830,279 shares worth 4.74 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, ERAS reported revenue of $0.00 and operating income of -$35.91M. The EBITDA in the recently reported quarter was -$35.37M and diluted EPS was -$0.30.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for ERAS 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 ERAS analysts setting a high price target of $15.00 and a low target of $6.00, the average target price over the next 12 months is $9.67. Based on these targets, ERAS could surge 481.4% to reach the target high and rise by 132.56% to reach the target low. Reaching the average price target will result in a growth of 274.81% 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 ERAS 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 15 while that of sell transactions has risen to 1 over the past year. The total number of shares bought during that period was 683,582 while 2,000,006 shares were sold.