Terns Pharmaceuticals Inc. (NASDAQ: TERN) stock fell -0.78% on Friday to $5.12 against a previous-day closing price of $5.16. With 0.64 million shares changed hands, the volume of the stock remained lighter than its average volume of 0.85 million shares. During the session, the Biotechnology company that operates in wider Healthcare sector, reached to the highest price of $5.25 whereas the lowest price it dropped to was $5.02. The 52-week range on TERN shows that it touched its highest point at $14.04 and its lowest point at $4.38 during that stretch. It currently has a 1-year price target of $16.62. Beta for the stock currently stands at -1.01.
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 TERN was down-trending over the past week, with a drop of -8.57%, but this was down by -10.02% over a month. Three-month performance dropped to -55.40% while six-month performance fell -48.44%. The stock lost -18.08% in the past year, while it has lost -49.71% so far this year. A look at the trailing 12-month EPS for TERN yields -1.28 with Next year EPS estimates of -1.29. For the next quarter, that number is -0.30. This implies an EPS growth rate of 24.20% for this year and -8.40% for next year.
Float and Shares Shorts:
At present, 71.36 million TERN shares are outstanding with a float of 60.10 million shares on hand for trading. On Aug 30, 2023, short shares totaled 4.78 million, which was 7.83% higher than short shares on Jul 30, 2023. In addition to Dr. Erin Quirk M.D. as the firm’s Pres & Head of R&D, Mr. Seokho Yoon Esq. serves as its COO, Gen. Counsel & Sec.
Other institutions hold 43.87% of TERN, in contrast to 24.79% held by mutual funds. Shares owned by individuals account for 10.33%. As the largest shareholder in TERN with 11.54% of the stake, Fidelity Management & Research Co holds 7,049,234 shares worth 7,049,234. A second-largest stockholder of TERN, Suvretta Capital Management LLC, holds 5,561,835 shares, controlling over 9.11% of the firm’s shares. Deep Track Capital LP is the third largest shareholder in TERN, holding 3,560,000 shares or 5.83% stake. With a 3.25% stake in TERN, the Fidelity Small Cap Growth Fund is the largest stakeholder. A total of 1,983,129 shares are owned by the mutual fund manager. The Vanguard Total Stock Market ETF, which owns about 1.99% of TERN stock, is the second-largest Mutual Fund holder. It holds 1,218,066 shares valued at 6.42 million. FTIF SICAV – Biotechnology Discov holds 1.97% of the stake in TERN, owning 1,199,900 shares worth 6.32 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, TERN reported revenue of $0.00 and operating income of -$14.08M. The EBITDA in the recently reported quarter was -$13.81M and diluted EPS was -$0.55.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for TERN 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 TERN analysts setting a high price target of $25.00 and a low target of $8.00, the average target price over the next 12 months is $16.63. Based on these targets, TERN could surge 388.28% to reach the target high and rise by 56.25% to reach the target low. Reaching the average price target will result in a growth of 224.8% 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 TERN 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 3 over the past year. The total number of shares bought during that period was 1,815,216 while 1,500,000 shares were sold.