Eledon Pharmaceuticals Target of Unusually Large Options Trading (NASDAQ:ELDN)

Key Points

• Unusual bearish options activity: Traders purchased 16,049 put options on Eledon Pharmaceuticals, roughly 2,001% above the typical volume of 764 contracts.
• Mixed analyst outlook: Ratings range from “strong sell” to “buy,” with a consensus rating of “Hold” and an average price target of $9.67 versus the stock’s recent price of $3.38.
• Weak financial performance: Eledon reported a quarterly loss of $0.33 per share, missing estimates by $0.11, while analysts expect a full-year loss of $0.74 per share.

Eledon Pharmaceuticals, Inc. (NASDAQ:ELDN - Get Free Report) was the recipient of some unusual options trading on Wednesday. Traders bought 16,049 put options on the stock. This is an increase of 2,001% compared to the typical volume of 764 put options.

Wall Street Analysts Forecast Growth

A number of equities analysts recently commented on the company. Wall Street Zen downgraded Eledon Pharmaceuticals from a "sell" rating to a "strong sell" rating in a research report on Saturday, May 16th. Weiss Ratings reissued a "sell (d-)" rating on shares of Eledon Pharmaceuticals in a research report on Wednesday, June 24th. Finally, Rodman & Renshaw assumed coverage on shares of Eledon Pharmaceuticals in a report on Tuesday, July 21st. They issued a "buy" rating and a $12.00 price objective for the company. Three equities research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the company currently has a consensus rating of "Hold" and a consensus target price of $9.67.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently modified their holdings of ELDN. GK Wealth Management LLC acquired a new stake in shares of Eledon Pharmaceuticals during the 2nd quarter worth about $45,000. Relyea Zuckerberg Hanson LLC purchased a new position in shares of Eledon Pharmaceuticals during the first quarter valued at approximately $37,000. BNP Paribas Financial Markets grew its stake in Eledon Pharmaceuticals by 143.7% in the 3rd quarter. BNP Paribas Financial Markets now owns 12,154 shares of the company's stock worth $31,000 after acquiring an additional 7,166 shares during the period. Waverly Advisors LLC purchased a new stake in Eledon Pharmaceuticals in the 1st quarter worth approximately $39,000. Finally, Baker Ellis Asset Management LLC acquired a new position in Eledon Pharmaceuticals in the 1st quarter valued at $59,000. 56.77% of the stock is currently owned by hedge funds and other institutional investors.

Eledon Pharmaceuticals Stock Performance

ELDN stock traded down $0.01 during mid-day trading on Wednesday, reaching $3.38. The company had a trading volume of 561,649 shares, compared to its average volume of 1,258,177. The company has a market capitalization of $261.29 million, a price-to-earnings ratio of -4.40 and a beta of 0.95. The firm has a fifty day simple moving average of $3.79 and a 200 day simple moving average of $3.15. Eledon Pharmaceuticals has a fifty-two week low of $1.35 and a fifty-two week high of $4.60.

Eledon Pharmaceuticals (NASDAQ:ELDN - Get Free Report) last posted its earnings results on Wednesday, May 13th. The company reported ($0.33) EPS for the quarter, missing the consensus estimate of ($0.22) by ($0.11). As a group, analysts predict that Eledon Pharmaceuticals will post -0.74 earnings per share for the current year.

Eledon Pharmaceuticals Company Profile

Eledon Pharmaceuticals, Inc NASDAQ: ELDN is a clinical-stage biopharmaceutical company focused on the discovery and development of therapies for diseases characterized by smooth muscle dysfunction. The company leverages a proprietary ion-channel modulation platform to identify and optimize small-molecule compounds that can either restore or inhibit smooth muscle activity, with the goal of addressing gastrointestinal, hepatic and cardiovascular disorders.

Eledon’s pipeline comprises several preclinical and early-phase clinical programs targeting high-unmet-need indications.

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