Catalyst Pharmaceuticals (NASDAQ:CPRX) Upgraded to "Buy" at Wall Street Zen

Key Points

• Catalyst Pharmaceuticals has been upgraded from a "hold" to a "buy" rating by Wall Street Zen, reflecting positive sentiment among analysts regarding the stock's performance.
• The company reported $0.28 earnings per share for the last quarter, alongside a net margin of 37.36% and revenue of $53.11 million, indicating a strong financial position.
• Catalyst Pharmaceuticals has initiated a $200 million stock buyback plan, suggesting that the board believes the company's shares are undervalued, as it allows for repurchase of up to 8.3% of its stock.

Catalyst Pharmaceuticals (NASDAQ:CPRX - Get Free Report) was upgraded by analysts at Wall Street Zen from a "hold" rating to a "buy" rating in a research note issued to investors on Sunday.

CPRX has been the topic of several other reports. Weiss Ratings reiterated a "hold (c+)" rating on shares of Catalyst Pharmaceuticals in a research report on Wednesday. Zacks Research downgraded shares of Catalyst Pharmaceuticals from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, August 19th. Two equities research analysts have rated the stock with a Strong Buy rating, five have issued a Buy rating and two have issued a Hold rating to the stock. According to MarketBeat, the stock has a consensus rating of "Buy" and a consensus price target of $33.20.

Catalyst Pharmaceuticals Trading Down 2.2%

CPRX opened at $20.36 on Friday. Catalyst Pharmaceuticals has a 1-year low of $19.05 and a 1-year high of $26.58. The company has a market capitalization of $2.49 billion, a PE ratio of 12.34, a PEG ratio of 0.82 and a beta of 0.79. The firm's 50 day simple moving average is $20.28 and its two-hundred day simple moving average is $22.05.

Catalyst Pharmaceuticals (NASDAQ:CPRX - Get Free Report) last released its quarterly earnings results on Monday, September 25th. The biopharmaceutical company reported $0.28 earnings per share for the quarter. Catalyst Pharmaceuticals had a net margin of 37.36% and a return on equity of 40.78%. The business had revenue of $53.11 million for the quarter. Equities analysts forecast that Catalyst Pharmaceuticals will post 1.9 earnings per share for the current fiscal year.

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

Insider Activity

In other news, insider Brian Elsbernd sold 30,000 shares of the firm's stock in a transaction on Monday, September 8th. The shares were sold at an average price of $20.30, for a total transaction of $609,000.00. Following the sale, the insider directly owned 271,039 shares in the company, valued at $5,502,091.70. This trade represents a 9.97% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at this hyperlink. Also, CEO Richard J. Daly sold 22,970 shares of the firm's stock in a transaction 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 sale, the chief executive officer owned 226,794 shares in the company, valued at $4,676,492.28. The trade was a 9.20% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 243,970 shares of company stock valued at $4,927,241 over the last 90 days. Company insiders own 10.40% of the company's stock.

Hedge Funds Weigh In On Catalyst Pharmaceuticals

Institutional investors have recently bought and sold shares of the stock. Cambridge Investment Research Advisors Inc. purchased a new position in Catalyst Pharmaceuticals during the first quarter valued at $484,000. Principal Financial Group Inc. grew its stake in Catalyst Pharmaceuticals by 2.8% during the first quarter. Principal Financial Group Inc. now owns 617,506 shares of the biopharmaceutical company's stock valued at $14,975,000 after acquiring an additional 17,018 shares in the last quarter. Redhawk Wealth Advisors Inc. grew its stake in Catalyst Pharmaceuticals by 24.7% during the second quarter. Redhawk Wealth Advisors Inc. now owns 67,778 shares of the biopharmaceutical company's stock valued at $1,471,000 after acquiring an additional 13,407 shares in the last quarter. Spire Wealth Management grew its stake in Catalyst Pharmaceuticals by 27.7% during the first quarter. Spire Wealth Management now owns 18,429 shares of the biopharmaceutical company's stock valued at $447,000 after acquiring an additional 4,000 shares in the last quarter. Finally, Swedbank AB purchased a new position in Catalyst Pharmaceuticals during the first quarter valued at $14,941,000. 79.22% of the stock is owned by hedge funds and other institutional investors.

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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