Eton Pharmaceuticals (NASDAQ:ETON) Shares Down 4.5% - Here's Why

Key Points

• Eton Pharmaceuticals shares fell 4.5% to $41.70 on Tuesday, with trading volume down about 80% from its average.
• Analyst sentiment remains generally positive: the stock has a “Moderate Buy” consensus rating and an average price target of $54.50, despite two sell ratings.
• The company missed quarterly EPS expectations ($0.05 versus $0.10) while exceeding revenue estimates, and insiders have sold 150,000 shares worth approximately $4.85 million over the past 90 days.

Eton Pharmaceuticals, Inc. (NASDAQ:ETON - Get Free Report)'s stock price dropped 4.5% on Tuesday . The company traded as low as $40.61 and last traded at $41.70. Approximately 80,032 shares were traded during trading, a decline of 80% from the average daily volume of 392,331 shares. The stock had previously closed at $43.67.

Wall Street Analyst Weigh In

A number of equities analysts have commented on the company. HC Wainwright lifted their target price on Eton Pharmaceuticals from $57.00 to $65.00 and gave the company a "buy" rating in a research note on Tuesday. Canaccord Genuity Group assumed coverage on Eton Pharmaceuticals in a report on Thursday, July 16th. They issued a "buy" rating and a $60.00 price target on the stock. Weiss Ratings restated a "sell (d-)" rating on shares of Eton Pharmaceuticals in a research report on Friday, July 17th. Wall Street Zen upgraded Eton Pharmaceuticals from a "buy" rating to a "strong-buy" rating in a research note on Saturday, June 13th. Finally, Craig Hallum raised their target price on Eton Pharmaceuticals from $40.00 to $62.00 and gave the company a "buy" rating in a research note on Tuesday, July 28th. One equities research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and two have assigned a Sell rating to the company's stock. According to MarketBeat, the company presently has an average rating of "Moderate Buy" and an average price target of $54.50.

Eton Pharmaceuticals Stock Down 4.0%

The company has a market cap of $1.15 billion, a price-to-earnings ratio of -597.56 and a beta of 0.86. The stock has a 50-day simple moving average of $37.66 and a 200-day simple moving average of $27.82. The company has a current ratio of 1.21, a quick ratio of 0.88 and a debt-to-equity ratio of 0.62.

Eton Pharmaceuticals (NASDAQ:ETON - Get Free Report) last issued its quarterly earnings data on Thursday, May 14th. The company reported $0.05 earnings per share for the quarter, missing analysts' consensus estimates of $0.10 by ($0.05). The company had revenue of $24.27 million for the quarter, compared to the consensus estimate of $22.31 million. Eton Pharmaceuticals had a negative net margin of 1.70% and a negative return on equity of 5.68%. As a group, analysts predict that Eton Pharmaceuticals, Inc. will post 0.75 EPS for the current year.

Insider Buying and Selling

In other news, Director Jennifer Mckie Adams sold 50,000 shares of the stock in a transaction that occurred on Wednesday, June 17th. The shares were sold at an average price of $32.48, for a total value of $1,624,000.00. Following the completion of the transaction, the director directly owned 50,000 shares in the company, valued at $1,624,000. This trade represents a 50.00% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Also, insider David Krempa sold 19,679 shares of the firm's stock in a transaction that occurred on Wednesday, May 27th. The shares were sold at an average price of $31.47, for a total transaction of $619,298.13. Following the transaction, the insider owned 25,249 shares in the company, valued at $794,586.03. This represents a 43.80% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Over the last ninety days, insiders sold 150,000 shares of company stock valued at $4,853,921. Company insiders own 16.49% of the company's stock.

Hedge Funds Weigh In On Eton Pharmaceuticals

Several large investors have recently made changes to their positions in ETON. Quarry LP bought a new stake in shares of Eton Pharmaceuticals in the 3rd quarter worth approximately $37,000. Legal & General Group Plc bought a new position in shares of Eton Pharmaceuticals in the second quarter valued at $41,000. Caitong International Asset Management Co. Ltd acquired a new stake in shares of Eton Pharmaceuticals during the 4th quarter valued at $44,000. China Universal Asset Management Co. Ltd. bought a new stake in shares of Eton Pharmaceuticals during the 4th quarter worth $74,000. Finally, Persistent Asset Partners Ltd acquired a new position in shares of Eton Pharmaceuticals in the 2nd quarter worth $90,000. Institutional investors own 27.86% of the company's stock.

About Eton Pharmaceuticals

Eton Pharmaceuticals, Inc is a specialty pharmaceutical company focused on developing, manufacturing and commercializing generic and proprietary pharmaceutical products for patients with rare and underserved diseases. Headquartered in West Palm Beach, Florida, the company leverages its expertise in hormone therapies and complex molecules to address treatment areas where patient need is high and competition is limited. Since its founding in 2016, Eton has sought to build a diversified portfolio that combines established generic medicines with targeted branded offerings.

The company's product lineup includes thyroid hormone replacements such as desiccated thyroid and liothyronine, as well as pyrimethamine tablets indicated for toxoplasmosis.

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