Cerus Corporation (NASDAQ: CERS) stock fell -4.12% on Friday to $1.63 against a previous-day closing price of $1.70. With 2.48 million shares changed hands, the volume of the stock remained heavier than its average volume of 1.15 million shares. During the session, the Medical Devices company that operates in wider Healthcare sector, reached to the highest price of $1.7100 whereas the lowest price it dropped to was $1.6300. The 52-week range on CERS shows that it touched its highest point at $4.28 and its lowest point at $1.56 during that stretch. It currently has a 1-year price target of $5.75. Beta for the stock currently stands at 1.11.
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 CERS was down-trending over the past week, with a drop of -0.61%, but this was down by -9.44% over a month. Three-month performance dropped to -38.95% while six-month performance fell -44.75%. The stock lost -58.84% in the past year, while it has lost -55.34% so far this year. A look at the trailing 12-month EPS for CERS yields -0.29 with Next year EPS estimates of -0.12. For the next quarter, that number is -0.05. This implies an EPS growth rate of 23.70% for this year and 47.80% for next year.
Float and Shares Shorts:
At present, 180.61 million CERS shares are outstanding with a float of 175.24 million shares on hand for trading. On Aug 30, 2023, short shares totaled 5.59 million, which was 3.09% higher than short shares on Jul 30, 2023. In addition to Mr. William M. Greenman as the firm’s Pres, CEO & Director, Mr. Kevin D. Green serves as its VP of Fin. & CFO.
Through their ownership of 79.67% of CERS’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 6.33% of CERS, in contrast to 42.87% held by mutual funds. Shares owned by individuals account for 34.24%. As the largest shareholder in CERS with 11.43% of the stake, ARK Investment Management LLC holds 20,657,391 shares worth 20,657,391. A second-largest stockholder of CERS, Baker Bros. Advisors LP, holds 16,067,558 shares, controlling over 8.89% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in CERS, holding 11,794,586 shares or 6.52% stake. With a 7.12% stake in CERS, the ARK Innovation ETF is the largest stakeholder. A total of 12,880,572 shares are owned by the mutual fund manager. The Nikko AM Global Umbrella Fund – A, which owns about 4.79% of CERS stock, is the second-largest Mutual Fund holder. It holds 8,658,730 shares valued at 16.36 million. PRIMECAP Odyssey Aggressive Growt holds 4.76% of the stake in CERS, owning 8,613,000 shares worth 16.28 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, CERS reported revenue of $41.00M and operating income of -$6.83M. The EBITDA in the recently reported quarter was -$6.10M and diluted EPS was -$0.05.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for CERS 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 CERS analysts setting a high price target of $9.00 and a low target of $3.00, the average target price over the next 12 months is $5.75. Based on these targets, CERS could surge 452.15% to reach the target high and rise by 84.05% to reach the target low. Reaching the average price target will result in a growth of 252.76% 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 CERS stock several times over the past three months with 2 Buys and 0 Sells. In these transactions, 17,500 shares were bought while 0 shares were sold. The number of buy transactions has increased to 35 while that of sell transactions has risen to 16 over the past year. The total number of shares bought during that period was 2,336,877 while 184,740 shares were sold.