Catalyst Pharmaceuticals (NASDAQ:CPRX) Stock Price Down 10.4% - Here's What Happened

Key Points

• Catalyst Pharmaceuticals' stock fell 10.4% to $19.52, with trading volume increasing significantly to around 2.9 million shares compared to its average of 1.3 million shares.
• Cantor Fitzgerald upgraded Catalyst Pharmaceuticals to a "strong-buy" rating, contributing to a consensus buy rating and an average price target of $32.83 from analysts.
• Insider trading activity included a significant sale by Gary Ingenito of 200,000 shares, resulting in a 74.38% decrease in his ownership of the stock.

Catalyst Pharmaceuticals, Inc. (NASDAQ:CPRX - Get Free Report)'s share price was down 10.4% during trading on Thursday . The company traded as low as $19.15 and last traded at $19.52. Approximately 2,905,855 shares changed hands during mid-day trading, an increase of 124% from the average daily volume of 1,299,651 shares. The stock had previously closed at $21.79.

Analyst Upgrades and Downgrades

CPRX has been the topic of a number of recent research reports. Wall Street Zen downgraded Catalyst Pharmaceuticals from a "strong-buy" rating to a "hold" rating in a research report on Saturday. Cantor Fitzgerald upgraded shares of Catalyst Pharmaceuticals to a "strong-buy" rating in a research report on Thursday, June 5th. One research analyst has rated the stock with a hold rating, five have assigned a buy rating and two have given a strong buy rating to the company's stock. According to MarketBeat.com, the company presently has a consensus rating of "Buy" and a consensus target price of $33.20.

Catalyst Pharmaceuticals Stock Performance

The firm's 50 day simple moving average is $22.26 and its 200 day simple moving average is $22.79. The firm has a market capitalization of $2.40 billion, a price-to-earnings ratio of 11.84, a PEG ratio of 0.81 and a beta of 0.70.

Insider Buying and Selling

In other news, insider Preethi Sundaram sold 2,324 shares of Catalyst Pharmaceuticals stock in a transaction on Tuesday, June 10th. The stock was sold at an average price of $26.41, for a total transaction of $61,376.84. Following the completion of the transaction, the insider owned 42,681 shares of the company's stock, valued at $1,127,205.21. The trade was a 5.16% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available through this hyperlink. Also, insider Gary Ingenito sold 200,000 shares of the company's stock in a transaction that occurred on Tuesday, May 13th. The shares were sold at an average price of $23.68, for a total value of $4,736,000.00. Following the completion of the transaction, the insider directly owned 68,873 shares in the company, valued at approximately $1,630,912.64. The trade was a 74.38% decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last 90 days, insiders have sold 247,924 shares of company stock worth $5,879,369. Insiders own 10.40% of the company's stock.

Institutional Investors Weigh In On Catalyst Pharmaceuticals

A number of hedge funds and other institutional investors have recently bought and sold shares of the business. LPL Financial LLC lifted its holdings in shares of Catalyst Pharmaceuticals by 38.0% in the fourth quarter. LPL Financial LLC now owns 57,983 shares of the biopharmaceutical company's stock valued at $1,210,000 after purchasing an additional 15,961 shares in the last quarter. JPMorgan Chase & Co. grew its holdings in Catalyst Pharmaceuticals by 80.3% during the 4th quarter. JPMorgan Chase & Co. now owns 736,197 shares of the biopharmaceutical company's stock worth $15,364,000 after acquiring an additional 327,936 shares during the period. Envestnet Asset Management Inc. grew its stake in shares of Catalyst Pharmaceuticals by 162.2% in the 4th quarter. Envestnet Asset Management Inc. now owns 64,395 shares of the biopharmaceutical company's stock valued at $1,344,000 after buying an additional 39,836 shares during the period. Russell Investments Group Ltd. boosted its stake in shares of Catalyst Pharmaceuticals by 1.4% in the 4th quarter. Russell Investments Group Ltd. now owns 176,259 shares of the biopharmaceutical company's stock worth $3,679,000 after buying an additional 2,471 shares during the last quarter. Finally, Federated Hermes Inc. raised its holdings in Catalyst Pharmaceuticals by 222.1% during the 4th quarter. Federated Hermes Inc. now owns 174,390 shares of the biopharmaceutical company's stock valued at $3,640,000 after acquiring an additional 120,249 shares during the period. 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.