Collegium Pharmaceutical (NASDAQ:COLL) Trading Up 12.2% - Should You Buy?

Key Points

• Collegium Pharmaceutical's stock price increased by 12.2% to $33.39 amid otherwise decreased trading volume.
• Analysts have mixed views on the stock, with a consensus rating of "Moderate Buy" and an average target price of $43.75, indicating varying expectations of future performance.
• The company has launched a $150 million share buyback program, signaling management's belief that the stock may be undervalued.

Collegium Pharmaceutical, Inc. (NASDAQ:COLL - Get Free Report) shot up 12.2% on Thursday . The stock traded as high as $33.41 and last traded at $33.39. 158,799 shares changed hands during trading, a decline of 55% from the average session volume of 355,457 shares. The stock had previously closed at $29.75.

Analyst Ratings Changes

A number of research firms have commented on COLL. Wall Street Zen raised Collegium Pharmaceutical from a "buy" rating to a "strong-buy" rating in a report on Saturday. HC Wainwright reissued a "buy" rating and set a $44.00 price objective on shares of Collegium Pharmaceutical in a research note on Monday. Finally, Piper Sandler restated a "neutral" rating and set a $37.00 target price (up previously from $36.00) on shares of Collegium Pharmaceutical in a research report on Friday, May 9th.

Collegium Pharmaceutical Stock Up 3.5%

The company has a debt-to-equity ratio of 3.27, a current ratio of 1.18 and a quick ratio of 1.10. The stock has a market cap of $1.14 billion, a PE ratio of 34.75 and a beta of 0.68. The business has a fifty day moving average of $30.90 and a 200-day moving average of $29.65.

Collegium Pharmaceutical (NASDAQ:COLL - Get Free Report) last issued its quarterly earnings data on Thursday, May 8th. The specialty pharmaceutical company reported $1.49 EPS for the quarter, missing analysts' consensus estimates of $1.50 by ($0.01). The business had revenue of $177.76 million during the quarter, compared to the consensus estimate of $174.96 million. Collegium Pharmaceutical had a return on equity of 97.28% and a net margin of 5.13%. The business's quarterly revenue was up 22.7% on a year-over-year basis. During the same period last year, the firm earned $1.45 EPS. Equities research analysts anticipate that Collegium Pharmaceutical, Inc. will post 5.62 earnings per share for the current year.

Collegium Pharmaceutical declared that its Board of Directors has initiated a share repurchase program on Monday, July 7th that allows the company to buyback $150.00 million in outstanding shares. This buyback authorization allows the specialty pharmaceutical company to repurchase up to 15.4% of its shares through open market purchases. Shares buyback programs are typically an indication that the company's management believes its stock is undervalued.

Insider Activity

In other news, Director John Gordon Freund sold 6,601 shares of the company's stock in a transaction on Monday, June 9th. The stock was sold at an average price of $30.62, for a total transaction of $202,122.62. Following the transaction, the director directly owned 70,658 shares of the company's stock, valued at approximately $2,163,547.96. This represents a 8.54% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Insiders own 2.51% of the company's stock.

Hedge Funds Weigh In On Collegium Pharmaceutical

A number of large investors have recently made changes to their positions in COLL. EMC Capital Management acquired a new position in shares of Collegium Pharmaceutical in the 2nd quarter valued at $97,000. Universal Beteiligungs und Servicegesellschaft mbH boosted its holdings in Collegium Pharmaceutical by 1.3% in the second quarter. Universal Beteiligungs und Servicegesellschaft mbH now owns 126,292 shares of the specialty pharmaceutical company's stock valued at $3,734,000 after purchasing an additional 1,621 shares during the last quarter. Intech Investment Management LLC boosted its holdings in Collegium Pharmaceutical by 49.7% in the second quarter. Intech Investment Management LLC now owns 110,675 shares of the specialty pharmaceutical company's stock valued at $3,273,000 after purchasing an additional 36,767 shares during the last quarter. Creative Planning boosted its holdings in Collegium Pharmaceutical by 83.5% in the second quarter. Creative Planning now owns 22,658 shares of the specialty pharmaceutical company's stock valued at $670,000 after purchasing an additional 10,307 shares during the last quarter. Finally, Commonwealth of Pennsylvania Public School Empls Retrmt SYS boosted its holdings in Collegium Pharmaceutical by 6.9% in the second quarter. Commonwealth of Pennsylvania Public School Empls Retrmt SYS now owns 8,252 shares of the specialty pharmaceutical company's stock valued at $244,000 after purchasing an additional 534 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.