Catalyst Pharmaceuticals, Inc. (NASDAQ:CPRX) Receives Consensus Rating of "Buy" from Analysts

Key Points

• Catalyst Pharmaceuticals has received a consensus rating of "Buy" from eight analyst firms, with an average 12-month target price of $33.20.
• The company has initiated a $200 million share buyback plan, which is typically seen as a sign that the board believes the stock is undervalued.
• Insider transactions showed significant sales, including 115,000 shares sold by insider Steve Miller and 22,970 shares sold by CEO Richard J. Daly, indicating a shift in ownership dynamics.

Catalyst Pharmaceuticals, Inc. (NASDAQ:CPRX - Get Free Report) has been given a consensus rating of "Buy" by the eight ratings firms that are currently covering the firm, Marketbeat.com reports. One investment analyst has rated the stock with a hold rating, five have given a buy rating and two have issued a strong buy rating on the company. The average 12-month target price among analysts that have updated their coverage on the stock in the last year is $33.20.

A number of equities research analysts recently commented on the stock. Zacks Research lowered shares of Catalyst Pharmaceuticals from a "strong-buy" rating to a "hold" rating in a report on Tuesday, August 19th. Wall Street Zen raised Catalyst Pharmaceuticals from a "hold" rating to a "buy" rating in a research note on Sunday, September 21st. Finally, Cantor Fitzgerald upgraded Catalyst Pharmaceuticals to a "strong-buy" rating in a report on Thursday, June 5th.

Insider Transactions at Catalyst Pharmaceuticals

In other Catalyst Pharmaceuticals news, insider Steve Miller sold 115,000 shares of the company's stock in a transaction that occurred on Tuesday, August 26th. The stock was sold at an average price of $20.28, for a total transaction of $2,332,200.00. Following the completion of the transaction, the insider owned 949,663 shares of the company's stock, valued at $19,259,165.64. This represents a 10.80% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. Also, CEO Richard J. Daly sold 22,970 shares of Catalyst Pharmaceuticals stock in a transaction that occurred on Tuesday, August 26th. The shares were sold at an average price of $20.62, for a total transaction of $473,641.40. Following the completion of the sale, the chief executive officer owned 226,794 shares in the company, valued at $4,676,492.28. This trade represents a 9.20% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 243,970 shares of company stock worth $4,927,241. 10.40% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Catalyst Pharmaceuticals

Large investors have recently modified their holdings of the business. Huntington National Bank increased its position in shares of Catalyst Pharmaceuticals by 105.0% in the second quarter. Huntington National Bank now owns 1,433 shares of the biopharmaceutical company's stock valued at $31,000 after acquiring an additional 734 shares during the last quarter. Sound Income Strategies LLC acquired a new position in Catalyst Pharmaceuticals during the first quarter valued at approximately $64,000. GAMMA Investing LLC grew its stake in Catalyst Pharmaceuticals by 26.2% in the first quarter. GAMMA Investing LLC now owns 2,791 shares of the biopharmaceutical company's stock valued at $68,000 after purchasing an additional 579 shares in the last quarter. Dakota Community Bank & Trust NA bought a new position in Catalyst Pharmaceuticals in the second quarter valued at approximately $81,000. Finally, PNC Financial Services Group Inc. increased its position in shares of Catalyst Pharmaceuticals by 57.2% during the 1st quarter. PNC Financial Services Group Inc. now owns 5,501 shares of the biopharmaceutical company's stock worth $133,000 after purchasing an additional 2,002 shares during the last quarter. 79.22% of the stock is currently owned by institutional investors and hedge funds.

Catalyst Pharmaceuticals Stock Performance

Shares of CPRX stock opened at $20.84 on Friday. Catalyst Pharmaceuticals has a 52 week low of $19.05 and a 52 week high of $26.58. The company's 50 day moving average price is $20.33 and its two-hundred day moving average price is $22.21. The company has a market capitalization of $2.55 billion, a P/E ratio of 12.63, a price-to-earnings-growth ratio of 0.84 and a beta of 0.79.

Catalyst Pharmaceuticals announced that its Board of Directors has initiated a share buyback plan on Wednesday, October 1st that permits the company to repurchase $200.00 million in outstanding shares. This repurchase authorization permits the biopharmaceutical company to buy up to 8.3% of its shares through open market purchases. Shares repurchase plans are generally an indication that the company's board believes its shares are undervalued.

About Catalyst Pharmaceuticals

Catalyst Pharmaceuticals, Inc, a commercial-stage biopharmaceutical company, focuses on developing and commercializing therapies for people with rare debilitating, chronic neuromuscular, and neurological diseases in the United States. It offers Firdapse, an amifampridine phosphate tablets for the treatment of patients with lambert-eaton myasthenic syndrome (LEMS); and Ruzurgi for the treatment of pediatric LEMS patients.

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