Assertio (NASDAQ:ASRT) Announces Earnings Results

Key Points

• Assertio reported a wider-than-expected loss for the quarter, posting EPS of ($2.93) versus analysts’ estimate of ($2.10). Revenue came in at $9.93 million, above the $8.97 million consensus forecast.
• The company’s shares rose to $22.50 in Friday trading, near their 52-week high of $22.55, despite trading below average volume. Assertio also showed a quick ratio of 1.51 and a debt-to-equity ratio of 0.42.
• Wall Street sentiment remains cautious, with analysts’ average rating at Hold and a consensus price target of $19.90. Several firms recently downgraded the stock, including Lake Street Capital, which cut its target from $45 to $18.

Assertio (NASDAQ:ASRT - Get Free Report) released its quarterly earnings data on Friday. The company reported ($2.93) EPS for the quarter, missing analysts' consensus estimates of ($2.10) by ($0.83), FiscalAI reports. The business had revenue of $9.93 million during the quarter, compared to analyst estimates of $8.97 million. Assertio had a negative net margin of 25.59% and a negative return on equity of 30.26%.

Assertio Stock Performance

Shares of NASDAQ ASRT traded up $0.13 during midday trading on Friday, reaching $22.50. 81,858 shares of the stock were exchanged, compared to its average volume of 431,348. The company has a 50 day simple moving average of $16.27 and a 200 day simple moving average of $13.06. The company has a quick ratio of 1.51, a current ratio of 1.70 and a debt-to-equity ratio of 0.42. Assertio has a twelve month low of $8.61 and a twelve month high of $22.55.

Institutional Trading of Assertio

Hedge funds and other institutional investors have recently made changes to their positions in the company. Nantahala Capital Management LLC increased its holdings in shares of Assertio by 4.4% during the 2nd quarter. Nantahala Capital Management LLC now owns 8,810,073 shares of the company's stock worth $5,649,000 after buying an additional 370,311 shares during the last quarter. Vanguard Group Inc. increased its holdings in shares of Assertio by 0.9% during the 3rd quarter. Vanguard Group Inc. now owns 4,425,543 shares of the company's stock worth $3,899,000 after buying an additional 41,332 shares during the last quarter. Opaleye Management Inc. acquired a new stake in shares of Assertio during the 4th quarter worth approximately $2,585,000. Edgewood Management LLC acquired a new stake in shares of Assertio during the 4th quarter worth approximately $975,000. Finally, Perritt Capital Management Inc increased its holdings in shares of Assertio by 51.6% during the 3rd quarter. Perritt Capital Management Inc now owns 350,316 shares of the company's stock worth $309,000 after buying an additional 119,281 shares during the last quarter. Institutional investors and hedge funds own 48.96% of the company's stock.

Wall Street Analysts Forecast Growth

A number of analysts have commented on ASRT shares. Wall Street Zen downgraded shares of Assertio from a "buy" rating to a "hold" rating in a report on Saturday, March 21st. Maxim Group downgraded shares of Assertio from a "strong-buy" rating to a "hold" rating in a report on Thursday, April 9th. Weiss Ratings reiterated a "sell (d-)" rating on shares of Assertio in a report on Monday, April 20th. Zacks Research downgraded shares of Assertio from a "strong-buy" rating to a "hold" rating in a report on Friday, March 6th. Finally, Lake Street Capital downgraded shares of Assertio from a "buy" rating to a "hold" rating and cut their price objective for the company from $45.00 to $18.00 in a report on Thursday, April 9th. One equities research analyst has rated the stock with a Buy rating, four have assigned a Hold rating and one has issued a Sell rating to the company. According to data from MarketBeat, the stock has an average rating of "Hold" and an average price target of $19.90.

Assertio Company Profile

Assertio Therapeutics, Inc, formerly known as Depomed, is a specialty pharmaceutical company focused on the development and commercialization of therapies for central nervous system (CNS) disorders, including neuropathic pain, migraine and breakthrough cancer pain. The company's commercial portfolio includes three FDA-approved products—Qutenza (8% capsaicin) for postherpetic neuralgia, Butrans (buprenorphine) transdermal system for chronic pain and Onsolis (fentanyl buccal soluble film) for breakthrough cancer pain—which are marketed primarily in the United States under licensing agreements with global partners.

In addition to its marketed therapies, Assertio maintains a pipeline of preclinical and clinical-stage candidates targeting a range of pain and neurological conditions.

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