Taking on analysts’ expectations and winning: BridgeBio Pharma Inc. (BBIO)

BridgeBio Pharma Inc. (NASDAQ: BBIO) stock fell -1.65% on Friday to $29.13 against a previous-day closing price of $29.62. With 4.59 million shares changed hands, the volume of the stock remained heavier than its average volume of 3.23 million shares. During the session, the Biotechnology company that operates in wider Healthcare sector, reached to the highest price of $29.47 whereas the lowest price it dropped to was $28.68. The 52-week range on BBIO shows that it touched its highest point at $36.36 and its lowest point at $6.64 during that stretch. It currently has a 1-year price target of $46.60. Beta for the stock currently stands at 0.96.

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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 BBIO was up-trending over the past week, with a rise of 2.53%, but this was down by -2.25% over a month. Three-month performance surged to 87.69% while six-month performance rose 110.93%. The stock gained 151.77% in the past year, while it has gained 282.28% so far this year. A look at the trailing 12-month EPS for BBIO yields -3.75 with Next year EPS estimates of -2.86. For the next quarter, that number is -0.82. This implies an EPS growth rate of 16.30% for this year and 18.30% for next year.

Float and Shares Shorts:

At present, 160.53 million BBIO shares are outstanding with a float of 119.65 million shares on hand for trading. On Aug 30, 2023, short shares totaled 15.33 million, which was 9.44% higher than short shares on Jul 30, 2023. In addition to Dr. Neil Kumar Ph.D. as the firm’s Co-Founder, Pres, CEO & Director, Dr. Charles J. Homcy M.D. serves as its Co-Founder, Chairman of Pharmaceuticals & Independent Lead Director.

Institutional Ownership:

Through their ownership of 95.46% of BBIO’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 63.84% of BBIO, in contrast to 47.45% held by mutual funds. Shares owned by individuals account for 22.96%. As the largest shareholder in BBIO with 15.46% of the stake, Viking Global Investors LP holds 25,120,991 shares worth 25,120,991. A second-largest stockholder of BBIO, The Vanguard Group, Inc., holds 11,411,323 shares, controlling over 7.02% of the firm’s shares. BlackRock Fund Advisors is the third largest shareholder in BBIO, holding 8,026,757 shares or 4.94% stake. With a 2.76% stake in BBIO, the SPDR S&P Biotech ETF is the largest stakeholder. A total of 4,486,736 shares are owned by the mutual fund manager. The Vanguard Total Stock Market ETF, which owns about 2.17% of BBIO stock, is the second-largest Mutual Fund holder. It holds 3,521,131 shares valued at 105.32 million. Vanguard Small Cap Index Fund holds 1.80% of the stake in BBIO, owning 2,926,399 shares worth 87.53 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, BBIO reported revenue of $73.75M and operating income of -$71.78M. The EBITDA in the recently reported quarter was $27.70M and diluted EPS was -$0.07.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for BBIO 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 BBIO analysts setting a high price target of $60.00 and a low target of $33.00, the average target price over the next 12 months is $46.60. Based on these targets, BBIO could surge 105.97% to reach the target high and rise by 13.29% to reach the target low. Reaching the average price target will result in a growth of 59.97% 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 BBIO stock several times over the past three months with 3 Buys and 6 Sells. In these transactions, 151,004 shares were bought while 1,648,545 shares were sold. The number of buy transactions has increased to 14 while that of sell transactions has risen to 35 over the past year. The total number of shares bought during that period was 511,426 while 3,103,042 shares were sold.

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