Avadel Pharmaceuticals (NASDAQ:AVDL) Shares Gap Up Following Earnings Beat

Key Points

• Avadel Pharmaceuticals shares gapped up significantly, opening at $14.00 after a stronger-than-expected earnings report that showed $0.10 earnings per share, outpacing analysts' estimates of $0.02.
• Institutional investors have increased their holdings in Avadel Pharmaceuticals, with 69.19% of the stock now owned by these entities, signaling confidence in the company's future prospects.
• The company's revenue grew by 64.1% compared to the same quarter last year, indicating strong growth despite its negative return on equity and net margin.

Avadel Pharmaceuticals PLC. (NASDAQ:AVDL - Get Free Report) shares gapped up before the market opened on Thursday following a stronger than expected earnings report. The stock had previously closed at $11.10, but opened at $14.00. Avadel Pharmaceuticals shares last traded at $12.13, with a volume of 837,374 shares.

The company reported $0.10 earnings per share for the quarter, topping analysts' consensus estimates of $0.02 by $0.08. Avadel Pharmaceuticals had a negative return on equity of 36.07% and a negative net margin of 13.58%. During the same quarter in the prior year, the firm earned ($0.14) EPS. The company's revenue for the quarter was up 64.1% compared to the same quarter last year.

Analyst Upgrades and Downgrades

Several research firms recently issued reports on AVDL. HC Wainwright restated a "buy" rating and issued a $22.00 price target on shares of Avadel Pharmaceuticals in a research note on Friday, July 18th. Needham & Company LLC reissued a "buy" rating and issued a $19.00 target price on shares of Avadel Pharmaceuticals in a report on Thursday, May 8th. Six research analysts have rated the stock with a buy rating, According to MarketBeat.com, the company has a consensus rating of "Buy" and a consensus price target of $18.33.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently made changes to their positions in AVDL. LPL Financial LLC boosted its stake in Avadel Pharmaceuticals by 41.9% during the fourth quarter. LPL Financial LLC now owns 34,125 shares of the company's stock worth $359,000 after acquiring an additional 10,072 shares in the last quarter. Vanguard Group Inc. increased its position in Avadel Pharmaceuticals by 2.3% in the 4th quarter. Vanguard Group Inc. now owns 3,953,247 shares of the company's stock valued at $41,549,000 after buying an additional 90,147 shares in the last quarter. Alliancebernstein L.P. raised its stake in Avadel Pharmaceuticals by 48.5% during the 4th quarter. Alliancebernstein L.P. now owns 96,710 shares of the company's stock worth $1,016,000 after buying an additional 31,588 shares during the period. National Bank of Canada FI bought a new position in Avadel Pharmaceuticals in the fourth quarter worth approximately $2,102,000. Finally, Geode Capital Management LLC lifted its holdings in shares of Avadel Pharmaceuticals by 0.9% in the 4th quarter. Geode Capital Management LLC now owns 1,165,251 shares of the company's stock worth $12,247,000 after purchasing an additional 10,886 shares in the last quarter. 69.19% of the stock is owned by institutional investors and hedge funds.

Avadel Pharmaceuticals Stock Performance

The stock's 50 day simple moving average is $9.91 and its 200 day simple moving average is $8.83. The firm has a market cap of $1.18 billion, a P/E ratio of -45.24 and a beta of 1.47.

About Avadel Pharmaceuticals

Avadel Pharmaceuticals plc operates as a biopharmaceutical company in the United States. Its lead product candidate is LUMRYZ, a formulation of sodium oxybate, which is in a Phase 3 clinical trial for the treatment of excessive daytime sleepiness or cataplexy in adults with narcolepsy. The company was formerly known as Flamel Technologies SA and changed its name to Avadel Pharmaceuticals plc in January 2017.

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