Collegium Pharmaceutical (NASDAQ:COLL) Trading Down 4.7% - Here's Why

Key Points

• Collegium Pharmaceutical's stock (NASDAQ:COLL) dropped 4.7% to $35.57 on Monday, with trading volume down 59% from its average.
• Analysts upgraded Collegium to a "strong-buy" rating, with a consensus price target of $42.33, indicating confidence in the stock despite the recent decline.
• The company authorized a share repurchase plan worth $150 million, allowing it to buy back up to 15.4% of its shares, typically viewed as a sign management believes the stock is undervalued.

Shares of Collegium Pharmaceutical, Inc. (NASDAQ:COLL - Get Free Report) dropped 4.7% during mid-day trading on Monday . The company traded as low as $35.48 and last traded at $35.57. Approximately 152,959 shares changed hands during mid-day trading, a decline of 59% from the average daily volume of 373,999 shares. The stock had previously closed at $37.32.

Wall Street Analysts Forecast Growth

COLL has been the topic of a number of recent research reports. Wall Street Zen raised Collegium Pharmaceutical from a "buy" rating to a "strong-buy" rating in a research note on Saturday, August 9th. HC Wainwright raised Collegium Pharmaceutical to a "strong-buy" rating and set a $44.00 target price on the stock in a research note on Monday, August 11th. One research analyst has rated the stock with a Strong Buy rating, one has issued a Buy rating and one has issued a Hold rating to the company's stock. According to data from MarketBeat, Collegium Pharmaceutical has a consensus rating of "Buy" and an average price target of $42.33.

Collegium Pharmaceutical Price Performance

The company has a fifty day simple moving average of $35.35 and a two-hundred day simple moving average of $31.17. The company has a debt-to-equity ratio of 3.27, a quick ratio of 1.10 and a current ratio of 1.18. The company has a market capitalization of $1.13 billion, a price-to-earnings ratio of 34.38 and a beta of 0.63.

Collegium Pharmaceutical announced that its board has approved a share repurchase program on Monday, July 7th that permits the company to buyback $150.00 million in shares. This buyback authorization permits the specialty pharmaceutical company to purchase up to 15.4% of its stock through open market purchases. Stock buyback programs are generally an indication that the company's leadership believes its stock is undervalued.

Insider Transactions at Collegium Pharmaceutical

In related news, EVP Scott Dreyer sold 16,389 shares of the company's stock in a transaction on Monday, August 18th. The shares were sold at an average price of $38.21, for a total transaction of $626,223.69. Following the completion of the sale, the executive vice president directly owned 103,613 shares of the company's stock, valued at approximately $3,959,052.73. This represents a 13.66% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, Director Gino Santini sold 5,405 shares of the company's stock in a transaction on Friday, August 15th. The stock was sold at an average price of $37.19, for a total transaction of $201,011.95. Following the sale, the director directly owned 95,042 shares of the company's stock, valued at approximately $3,534,611.98. This trade represents a 5.38% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 55,792 shares of company stock valued at $2,084,207. Corporate insiders own 2.51% of the company's stock.

Hedge Funds Weigh In On Collegium Pharmaceutical

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. CWM LLC raised its stake in Collegium Pharmaceutical by 453.9% during the second quarter. CWM LLC now owns 1,407 shares of the specialty pharmaceutical company's stock valued at $42,000 after buying an additional 1,153 shares in the last quarter. Wealthquest Corp bought a new position in Collegium Pharmaceutical in the first quarter worth about $62,000. EverSource Wealth Advisors LLC lifted its holdings in Collegium Pharmaceutical by 744.9% in the second quarter. EverSource Wealth Advisors LLC now owns 2,484 shares of the specialty pharmaceutical company's stock worth $73,000 after acquiring an additional 2,190 shares during the last quarter. GAMMA Investing LLC lifted its holdings in Collegium Pharmaceutical by 368.9% in the second quarter. GAMMA Investing LLC now owns 2,757 shares of the specialty pharmaceutical company's stock worth $82,000 after acquiring an additional 2,169 shares during the last quarter. Finally, NewEdge Advisors LLC lifted its holdings in Collegium Pharmaceutical by 304.6% in the second quarter. NewEdge Advisors LLC now owns 3,047 shares of the specialty pharmaceutical company's stock worth $90,000 after acquiring an additional 2,294 shares during the last quarter.

About Collegium Pharmaceutical

Collegium Pharmaceutical, Inc, a specialty pharmaceutical company, engages in the development and commercialization of medicines for pain management. Its portfolio includes Xtampza ER, an abuse-deterrent, extended-release, and oral formulation of oxycodone for the management of pain severe enough to require daily, around-the-clock, long-term opioid treatment; Nucynta ER and Nucynta IR, which are extended-release and immediate-release formulations of tapentadol, indicated for the management of acute, severe, and persistent pain; Belbuca, a buccal film that contains buprenorphine; and Symproic, an oral formulation of naldemedine for the treatment of opioid-induced constipation in adult patients with chronic non-cancer pain.