Collegium Pharmaceutical (NASDAQ:COLL) Trading 12.2% Higher - Here's What Happened

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)'s share price traded up 12.2% on Thursday . The stock traded as high as $33.41 and last traded at $33.39. 158,799 shares were traded during mid-day trading, a decline of 55% from the average session volume of 355,457 shares. The stock had previously closed at $29.75.

Analyst Upgrades and Downgrades

Several equities research analysts have weighed in on COLL shares. Wall Street Zen cut Collegium Pharmaceutical from a "strong-buy" rating to a "buy" rating in a report on Saturday, July 5th. Piper Sandler reiterated a "neutral" rating and issued a $37.00 target price (up previously from $36.00) on shares of Collegium Pharmaceutical in a research note on Friday, May 9th. Finally, Needham & Company LLC reaffirmed a "buy" rating and set a $46.00 price target on shares of Collegium Pharmaceutical in a report on Wednesday, April 9th. One equities research analyst has rated the stock with a hold rating and four have assigned a buy rating to the stock. Based on data from MarketBeat.com, Collegium Pharmaceutical presently has a consensus rating of "Moderate Buy" and an average target price of $43.75.

Collegium Pharmaceutical Stock Up 10.7%

The company's fifty day moving average is $30.58 and its 200-day moving average is $29.65. The company has a market capitalization of $1.06 billion, a PE ratio of 27.00 and a beta of 0.68. The company has a debt-to-equity ratio of 3.30, a quick ratio of 1.01 and a current ratio of 1.08.

Collegium Pharmaceutical (NASDAQ:COLL - Get Free Report) last announced its quarterly earnings data on Thursday, May 8th. The specialty pharmaceutical company reported $1.49 EPS for the quarter, missing the consensus estimate of $1.50 by ($0.01). The firm had revenue of $177.76 million for the quarter, compared to the consensus estimate of $174.96 million. Collegium Pharmaceutical had a net margin of 6.61% and a return on equity of 99.08%. The firm's revenue for the quarter was up 22.7% on a year-over-year basis. During the same quarter in the previous year, the business earned $1.45 earnings per share. As a group, analysts predict that Collegium Pharmaceutical, Inc. will post 5.62 EPS for the current fiscal year.

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

Insiders Place Their Bets

In other news, Director John Gordon Freund sold 6,601 shares of the business's stock in a transaction on Monday, June 9th. The shares were sold at an average price of $30.62, for a total value of $202,122.62. Following the transaction, the director owned 70,658 shares of the company's stock, valued at approximately $2,163,547.96. The trade was a 8.54% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. 2.51% of the stock is owned by insiders.

Hedge Funds Weigh In On Collegium Pharmaceutical

Institutional investors have recently added to or reduced their stakes in the company. Millennium Management LLC grew its holdings in shares of Collegium Pharmaceutical by 248.5% in the first quarter. Millennium Management LLC now owns 647,832 shares of the specialty pharmaceutical company's stock valued at $19,338,000 after purchasing an additional 461,914 shares in the last quarter. Invesco Ltd. raised its position in shares of Collegium Pharmaceutical by 19.5% during the 4th quarter. Invesco Ltd. now owns 1,775,760 shares of the specialty pharmaceutical company's stock valued at $50,876,000 after buying an additional 289,335 shares in the last quarter. Janus Henderson Group PLC lifted its holdings in shares of Collegium Pharmaceutical by 319.4% in the 4th quarter. Janus Henderson Group PLC now owns 291,388 shares of the specialty pharmaceutical company's stock valued at $8,341,000 after acquiring an additional 221,903 shares during the last quarter. Universal Beteiligungs und Servicegesellschaft mbH purchased a new position in Collegium Pharmaceutical in the fourth quarter worth about $3,489,000. Finally, Massachusetts Financial Services Co. MA increased its stake in Collegium Pharmaceutical by 18.1% during the first quarter. Massachusetts Financial Services Co. MA now owns 713,854 shares of the specialty pharmaceutical company's stock worth $21,309,000 after acquiring an additional 109,655 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.

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