Catalyst Pharmaceuticals (NASDAQ:CPRX) Sets New 1-Year Low - Time to Sell?

Key Points

• Catalyst Pharmaceuticals shares reached a new 52-week low, trading at $19.07, a decrease from the previous close of $19.70.
• Analysts have mixed views on the stock, with two giving it a Strong Buy rating and others downgrading it to a Hold, while the consensus remains a Buy with an average price target of $33.20.
• Insider selling has increased, with CEO Richard J. Daly and another insider collectively selling over 138,000 shares, leading to a decrease in their ownership positions.

Catalyst Pharmaceuticals, Inc. (NASDAQ:CPRX - Get Free Report) shares reached a new 52-week low during trading on Thursday . The company traded as low as $19.13 and last traded at $19.07, with a volume of 670092 shares changing hands. The stock had previously closed at $19.70.

Analyst Upgrades and Downgrades

A number of research analysts have recently commented on the company. Cantor Fitzgerald upgraded Catalyst Pharmaceuticals to a "strong-buy" rating in a report on Thursday, June 5th. Zacks Research downgraded Catalyst Pharmaceuticals from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, August 19th. Finally, Wall Street Zen upgraded Catalyst Pharmaceuticals from a "hold" rating to a "buy" rating in a research note on Sunday. Two equities research analysts have rated the stock with a Strong Buy rating, five have given a Buy rating and one has assigned a Hold rating to the company's stock. According to data from MarketBeat, Catalyst Pharmaceuticals presently has a consensus rating of "Buy" and an average price target of $33.20.

Catalyst Pharmaceuticals Stock Down 3.3%

The company has a 50 day moving average of $20.48 and a 200 day moving average of $22.26. The firm has a market cap of $2.33 billion, a price-to-earnings ratio of 11.55, a PEG ratio of 0.80 and a beta of 0.85.

Insiders Place Their Bets

In other news, CEO Richard J. Daly sold 22,970 shares of the stock in a transaction on Tuesday, August 26th. The stock was 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 approximately $4,676,492.28. This represents a 9.20% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, insider Steve Miller sold 115,000 shares of the stock in a transaction on Tuesday, August 26th. The shares were sold at an average price of $20.28, for a total value of $2,332,200.00. Following the sale, the insider owned 949,663 shares of the company's stock, valued at $19,259,165.64. This trade represents a 10.80% decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 243,970 shares of company stock valued at $4,927,241. 10.40% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Catalyst Pharmaceuticals

Several hedge funds have recently bought and sold shares of CPRX. Park Square Financial Group LLC acquired a new position in Catalyst Pharmaceuticals during the fourth quarter worth $29,000. Huntington National Bank grew 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 purchasing an additional 734 shares during the last quarter. Sound Income Strategies LLC acquired a new stake in shares of Catalyst Pharmaceuticals in the first quarter valued at about $64,000. GAMMA Investing LLC grew its position in shares of 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 during the last quarter. Finally, Dakota Community Bank & Trust NA acquired a new stake in shares of Catalyst Pharmaceuticals in the second quarter valued at about $81,000. 79.22% of the stock is owned by institutional investors and hedge funds.

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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