Catalyst Pharmaceuticals Inc. (NASDAQ: CPRX) stock jumped 1.28% on Monday to $12.62 against a previous-day closing price of $12.46. With 1.09 million shares changed hands, the volume of the stock remained lighter than its average volume of 1.53 million shares. During the session, the Biotechnology company that operates in wider Healthcare sector, reached to the highest price of $12.84 whereas the lowest price it dropped to was $12.50. The 52-week range on CPRX shows that it touched its highest point at $22.11 and its lowest point at $11.09 during that stretch. It currently has a 1-year price target of $23.10. Beta for the stock currently stands at 1.13.
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 CPRX was down-trending over the past week, with a drop of -1.25%, but this was down by -11.38% over a month. Three-month performance surged to 3.44% while six-month performance fell -20.73%. The stock lost -7.34% in the past year, while it has lost -32.15% so far this year. A look at the trailing 12-month EPS for CPRX yields 1.02 with Next year EPS estimates of 2.19. For the next quarter, that number is 0.48. This implies an EPS growth rate of 103.70% for this year and 15.71% for next year.
Float and Shares Shorts:
At present, 106.26 million CPRX shares are outstanding with a float of 99.82 million shares on hand for trading. On Aug 30, 2023, short shares totaled 7.16 million, which was 6.72% higher than short shares on Jul 30, 2023. In addition to Mr. Patrick J. McEnany as the firm’s Co-Founder, Chairman, Pres & CEO, Ms. Alicia Grande C.M.A., CPA, CMA, CPA serves as its Chief Accounting Officer, VP, Treasurer & CFO.
Through their ownership of 84.22% of CPRX’s outstanding shares, institutional investors have majority control over the company. Other institutions hold 43.57% of CPRX, in contrast to 35.04% held by mutual funds. Shares owned by individuals account for 14.42%. As the largest shareholder in CPRX with 13.43% of the stake, BlackRock Fund Advisors holds 14,310,459 shares worth 14,310,459. A second-largest stockholder of CPRX, SSgA Funds Management, Inc., holds 9,453,077 shares, controlling over 8.87% of the firm’s shares. Deerfield Management Co. LP is the third largest shareholder in CPRX, holding 8,192,000 shares or 7.69% stake. With a 6.46% stake in CPRX, the iShares Core S&P Small Cap ETF is the largest stakeholder. A total of 6,889,496 shares are owned by the mutual fund manager. The SPDR S&P Biotech ETF, which owns about 5.80% of CPRX stock, is the second-largest Mutual Fund holder. It holds 6,179,353 shares valued at 86.76 million. Vanguard Total Stock Market ETF holds 2.88% of the stake in CPRX, owning 3,068,916 shares worth 43.09 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, CPRX reported revenue of $53.11M and operating income of $28.57M. The EBITDA in the recently reported quarter was $28.61M and diluted EPS was $0.20.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for CPRX 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 CPRX analysts setting a high price target of $27.00 and a low target of $15.50, the average target price over the next 12 months is $23.10. Based on these targets, CPRX could surge 113.95% to reach the target high and rise by 22.82% to reach the target low. Reaching the average price target will result in a growth of 83.04% 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 CPRX stock several times over the past three months with 2 Buys and 1 Sells. In these transactions, 70,000 shares were bought while 3,942 shares were sold. The number of buy transactions has increased to 49 while that of sell transactions has risen to 41 over the past year. The total number of shares bought during that period was 2,004,456 while 1,539,472 shares were sold.