A look into Ultragenyx Pharmaceutical Inc. (RARE)’s deeper side

Ultragenyx Pharmaceutical Inc. (NASDAQ: RARE) stock fell -3.64% on Monday to $36.31 against a previous-day closing price of $37.68. With 0.65 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.57 million shares. During the session, the Biotechnology company that operates in wider Healthcare sector, reached to the highest price of $37.70 whereas the lowest price it dropped to was $36.02. The 52-week range on RARE shows that it touched its highest point at $54.98 and its lowest point at $33.36 during that stretch. It currently has a 1-year price target of $89.85. Beta for the stock currently stands at 0.86.

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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 RARE was down-trending over the past week, with a drop of -10.87%, but this was up by 3.98% over a month. Three-month performance dropped to -24.79% while six-month performance fell -5.76%. The stock lost -23.20% in the past year, while it has lost -21.63% so far this year. A look at the trailing 12-month EPS for RARE yields -10.25 with Next year EPS estimates of -6.61. For the next quarter, that number is -2.04. This implies an EPS growth rate of -51.10% for this year and 20.90% for next year.

Float and Shares Shorts:

At present, 70.90 million RARE shares are outstanding with a float of 68.37 million shares on hand for trading. On Aug 30, 2023, short shares totaled 3.45 million, which was 4.82% higher than short shares on Jul 30, 2023. In addition to Dr. Emil D. Kakkis M.D., Ph.D. as the firm’s Founder, Pres, CEO & Director, Mr. John Richard Pinion II serves as its Chief Quality Operations Officer & Exec. VP of Translational Sciences.

Institutional Ownership:

Through their ownership of 98.58% of RARE’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 53.82% of RARE, in contrast to 46.71% held by mutual funds. Shares owned by individuals account for 11.71%. As the largest shareholder in RARE with 10.12% of the stake, The Vanguard Group, Inc. holds 7,236,523 shares worth 7,236,523. A second-largest stockholder of RARE, RTW Investments LP, holds 5,405,089 shares, controlling over 7.56% of the firm’s shares. Wellington Management Co. LLP is the third largest shareholder in RARE, holding 5,177,521 shares or 7.24% stake. With a 2.93% stake in RARE, the Vanguard Total Stock Market ETF is the largest stakeholder. A total of 2,091,166 shares are owned by the mutual fund manager. The Vanguard Small Cap Index Fund, which owns about 2.45% of RARE stock, is the second-largest Mutual Fund holder. It holds 1,754,631 shares valued at 64.55 million. Vanguard Explorer Fund holds 2.22% of the stake in RARE, owning 1,589,640 shares worth 58.48 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, RARE reported revenue of $89.34M and operating income of -$141.59M. The EBITDA in the recently reported quarter was -$137.14M and diluted EPS was -$2.26.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for RARE 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 RARE analysts setting a high price target of $140.00 and a low target of $47.00, the average target price over the next 12 months is $91.16. Based on these targets, RARE could surge 285.57% to reach the target high and rise by 29.44% to reach the target low. Reaching the average price target will result in a growth of 151.06% 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 RARE stock several times over the past three months with 0 Buys and 1 Sells. In these transactions, 0 shares were bought while 585 shares were sold. The number of buy transactions has increased to 23 while that of sell transactions has risen to 25 over the past year. The total number of shares bought during that period was 223,162 while 92,023 shares were sold.

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