Is PTC Therapeutics Inc. (PTCT) positioned for future growth?

PTC Therapeutics Inc. (NASDAQ: PTCT) stock fell -7.54% on Monday to $24.28 against a previous-day closing price of $26.26. With 3.99 million shares changed hands, the volume of the stock remained heavier than its average volume of 0.77 million shares. During the session, the Biotechnology company that operates in wider Healthcare sector, reached to the highest price of $25.16 whereas the lowest price it dropped to was $23.83. The 52-week range on PTCT shows that it touched its highest point at $59.84 and its lowest point at $24.43 during that stretch. It currently has a 1-year price target of $45.08. Beta for the stock currently stands at 0.42.

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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 PTCT was down-trending over the past week, with a drop of -39.59%, but this was down by -39.30% over a month. Three-month performance dropped to -43.57% while six-month performance fell -48.67%. The stock lost -54.74% in the past year, while it has lost -36.39% so far this year. A look at the trailing 12-month EPS for PTCT yields -8.42 with Next year EPS estimates of -4.15. For the next quarter, that number is -1.06. This implies an EPS growth rate of -4.80% for this year and 33.50% for next year. EPS is expected to decline by -9.51% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -31.10%.

Float and Shares Shorts:

At present, 74.73 million PTCT shares are outstanding with a float of 73.49 million shares on hand for trading. On Aug 30, 2023, short shares totaled 7.4 million, which was 9.82% higher than short shares on Jul 30, 2023. In addition to Dr. Matthew B. Klein F.A.C.S., FACS, M.D., M.S., MS as the firm’s CEO & Director, Dr. Stuart W. Peltz Ph.D. serves as its Co-Founder, Sr. Consultant & Member of Scientific Advisory Board.

Institutional Ownership:

Through their ownership of 107.84% of PTCT’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 58.22% of PTCT, in contrast to 49.16% held by mutual funds. Shares owned by individuals account for 12.10%. As the largest shareholder in PTCT with 11.69% of the stake, Fidelity Management & Research Co holds 8,807,011 shares worth 8,807,011. A second-largest stockholder of PTCT, The Vanguard Group, Inc., holds 7,368,045 shares, controlling over 9.78% of the firm’s shares. RTW Investments LP is the third largest shareholder in PTCT, holding 7,235,196 shares or 9.60% stake. With a 3.07% stake in PTCT, the Vanguard Total Stock Market ETF is the largest stakeholder. A total of 2,315,520 shares are owned by the mutual fund manager. The Vanguard Small Cap Index Fund, which owns about 2.57% of PTCT stock, is the second-largest Mutual Fund holder. It holds 1,933,322 shares valued at 76.37 million. SPDR S&P Biotech ETF holds 2.22% of the stake in PTCT, owning 1,670,189 shares worth 65.97 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, PTCT reported revenue of $165.53M and operating income of -$107.56M. The EBITDA in the recently reported quarter was -$112.74M and diluted EPS was -$2.13.

Analysts Ratings:

Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for PTCT 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 PTCT analysts setting a high price target of $73.00 and a low target of $22.00, the average target price over the next 12 months is $41.43. Based on these targets, PTCT could surge 200.66% to reach the target high and fall by -9.39% to reach the target low. Reaching the average price target will result in a growth of 70.63% 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 PTCT stock several times over the past three months with 1 Buys and 0 Sells. In these transactions, 26,000 shares were bought while 0 shares were sold. The number of buy transactions has increased to 45 while that of sell transactions has risen to 85 over the past year. The total number of shares bought during that period was 444,349 while 220,727 shares were sold.

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