Sage Therapeutics Inc. (NASDAQ: SAGE) stock fell -3.43% on Monday to $20.30 against a previous-day closing price of $21.02. With 1.95 million shares changed hands, the volume of the stock remained heavier than its average volume of 1.73 million shares. During the session, the Biotechnology company that operates in wider Healthcare sector, reached to the highest price of $21.03 whereas the lowest price it dropped to was $19.99. The 52-week range on SAGE shows that it touched its highest point at $59.99 and its lowest point at $16.51 during that stretch. It currently has a 1-year price target of $25.53. 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 SAGE was down-trending over the past week, with a drop of -6.24%, but this was up by 1.45% over a month. Three-month performance dropped to -63.24% while six-month performance fell -52.51%. The stock lost -51.96% in the past year, while it has lost -46.78% so far this year. A look at the trailing 12-month EPS for SAGE yields -9.93 with Next year EPS estimates of -6.48. For the next quarter, that number is -2.69. This implies an EPS growth rate of -15.10% for this year and 27.80% for next year. EPS is expected to grow by 41.10% annually over the next five years; however, over the past five years, the company experienced an annual growth rate of -4.90%.
Float and Shares Shorts:
At present, 59.77 million SAGE shares are outstanding with a float of 52.37 million shares on hand for trading. On Aug 30, 2023, short shares totaled 9.27 million, which was 15.48% higher than short shares on Jul 30, 2023. In addition to SAVE as the firm’s Spirit Airlines, Inc., SAFE serves as its Safehold Inc. New.
Other institutions hold 54.00% of SAGE, in contrast to 4.49% held by mutual funds. Shares owned by individuals account for 35.88%. As the largest shareholder in SAGE with 14.68% of the stake, Fidelity Management & Research Co holds 8,789,614 shares worth 8,789,614. A second-largest stockholder of SAGE, Wellington Management Co. LLP, holds 6,363,630 shares, controlling over 10.63% of the firm’s shares. The Vanguard Group, Inc. is the third largest shareholder in SAGE, holding 4,882,789 shares or 8.15% stake. With a 5.14% stake in SAGE, the BB Biotech AG is the largest stakeholder. A total of 3,080,000 shares are owned by the mutual fund manager. The Fidelity Growth Company Fund, which owns about 4.27% of SAGE stock, is the second-largest Mutual Fund holder. It holds 2,556,927 shares valued at 51.14 million. Vanguard Total Stock Market ETF holds 2.67% of the stake in SAGE, owning 1,598,985 shares worth 31.98 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, SAGE reported revenue of $1.50M and operating income of -$128.41M. The EBITDA in the recently reported quarter was -$128.13M and diluted EPS was -$2.13.
Reading analyst opinions is an effective way to decide where to invest, and there are several opinions available for SAGE 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 SAGE analysts setting a high price target of $79.00 and a low target of $18.00, the average target price over the next 12 months is $25.53. Based on these targets, SAGE could surge 289.16% to reach the target high and fall by -11.33% to reach the target low. Reaching the average price target will result in a growth of 25.76% 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 SAGE stock several times over the past three months with 1 Buys and 0 Sells. In these transactions, 2,000 shares were bought while 0 shares were sold. The number of buy transactions has increased to 16 while that of sell transactions has risen to 7 over the past year. The total number of shares bought during that period was 59,974 while 18,210 shares were sold.