Arrowhead Pharmaceuticals (NASDAQ:ARWR) Stock Price Up 11% - Still a Buy?

Key Points

• Arrowhead Pharmaceuticals' stock price rose 11% during mid-day trading, reaching a high of $24.31, following a closing price of $22.03, although the trading volume was significantly lower than average.
• Recent reports from analysts show varied ratings for the stock, with two analysts giving it a Strong Buy rating, while others have steeply reduced price targets.
• The company reported a loss of $1.26 per share in its latest quarterly earnings, falling short of analysts' expectations, and projects a continued negative earnings trend for the fiscal year.

Arrowhead Pharmaceuticals, Inc. (NASDAQ:ARWR - Get Free Report) rose 11% during mid-day trading on Tuesday . The company traded as high as $24.31 and last traded at $24.46. Approximately 775,087 shares were traded during trading, a decline of 60% from the average daily volume of 1,957,772 shares. The stock had previously closed at $22.03.

Wall Street Analyst Weigh In

A number of brokerages have recently commented on ARWR. Wall Street Zen downgraded Arrowhead Pharmaceuticals from a "buy" rating to a "hold" rating in a research report on Friday, July 18th. TD Cowen upgraded Arrowhead Pharmaceuticals to a "strong-buy" rating in a research report on Monday, July 28th. B. Riley upgraded Arrowhead Pharmaceuticals to a "strong-buy" rating in a research report on Monday, August 11th. Royal Bank Of Canada cut their price objective on Arrowhead Pharmaceuticals from $40.00 to $38.00 and set an "outperform" rating for the company in a research report on Friday, August 8th. Finally, HC Wainwright reiterated a "buy" rating and set a $80.00 price objective on shares of Arrowhead Pharmaceuticals in a research report on Tuesday, September 2nd. Two investment analysts have rated the stock with a Strong Buy rating, five have issued a Buy rating and two have issued a Hold rating to the company. According to data from MarketBeat.com, Arrowhead Pharmaceuticals presently has a consensus rating of "Buy" and an average target price of $43.14.

Arrowhead Pharmaceuticals Price Performance

The stock has a fifty day moving average price of $18.78 and a 200-day moving average price of $16.23. The company has a market cap of $4.02 billion, a PE ratio of -22.72 and a beta of 1.00. The company has a debt-to-equity ratio of 0.39, a current ratio of 4.87 and a quick ratio of 4.87.

Arrowhead Pharmaceuticals (NASDAQ:ARWR - Get Free Report) last announced its quarterly earnings data on Thursday, August 7th. The biotechnology company reported ($1.26) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.94) by ($0.32). The company had revenue of $27.77 million during the quarter, compared to analyst estimates of $29.01 million. During the same period last year, the company posted ($1.38) EPS. On average, equities analysts expect that Arrowhead Pharmaceuticals, Inc. will post -2.42 earnings per share for the current year.

Insider Activity

In related news, insider James C. Hamilton sold 15,000 shares of the stock in a transaction on Tuesday, September 2nd. The stock was sold at an average price of $25.00, for a total transaction of $375,000.00. Following the completion of the sale, the insider directly owned 247,122 shares in the company, valued at approximately $6,178,050. This trade represents a 5.72% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Insiders sold 25,000 shares of company stock worth $575,000 in the last ninety days. 4.30% of the stock is currently owned by company insiders.

Institutional Trading of Arrowhead Pharmaceuticals

Hedge funds and other institutional investors have recently modified their holdings of the company. GAMMA Investing LLC increased its position in Arrowhead Pharmaceuticals by 297.6% during the first quarter. GAMMA Investing LLC now owns 2,175 shares of the biotechnology company's stock worth $28,000 after buying an additional 1,628 shares during the last quarter. Virtus Advisers LLC acquired a new stake in shares of Arrowhead Pharmaceuticals in the second quarter valued at about $34,000. Nisa Investment Advisors LLC grew its position in shares of Arrowhead Pharmaceuticals by 75.9% in the second quarter. Nisa Investment Advisors LLC now owns 3,032 shares of the biotechnology company's stock valued at $48,000 after purchasing an additional 1,308 shares during the last quarter. GF Fund Management CO. LTD. acquired a new stake in shares of Arrowhead Pharmaceuticals in the fourth quarter valued at about $49,000. Finally, CWM LLC grew its position in shares of Arrowhead Pharmaceuticals by 134.3% in the first quarter. CWM LLC now owns 4,401 shares of the biotechnology company's stock valued at $56,000 after purchasing an additional 2,523 shares during the last quarter. 62.61% of the stock is currently owned by hedge funds and other institutional investors.

About Arrowhead Pharmaceuticals

Arrowhead Pharmaceuticals, Inc develops medicines for the treatment of intractable diseases in the United States. The company's products in pipeline includes Plozasiran, which is in Phase 2b and one Phase 3 clinical trial to treat hypertriglyceridemia, mixed dyslipidemia, and chylomicronemia syndrome; Zodasiran that is in Phase 2b clinical trial for the treatment of dyslipidemia and hypertriglyceridemia; ARO-PNPLA3, which is in Phase 1 clinical trial to treat patients with non-alcoholic steatohepatitis; ARO-RAGE that is in Phase 1/2a clinical trial to treat inflammatory pulmonary conditions; and ARO-MUC5AC, which is in Phase 1/2a clinical trial to treat muco-obstructive pulmonary diseases.