Eton Pharmaceuticals (NASDAQ:ETON) Shares Down 6% - Should You Sell?

Key Points

• Shares fell about 6% to roughly $23.75 on Tuesday with volume ~55% below average; despite the pullback several firms have raised targets (HC Wainwright to $52) but MarketBeat's consensus remains a "Hold" with an average target of $39.33.
• In the latest quarter Eton reported a EPS miss ($0.05 vs. $0.12 expected) while revenue of $21.28M modestly beat estimates, and the company remains unprofitable (negative net margin and ROE, P/E listed as -130) with a market cap around $642M and liquidity ratios above 1.

Eton Pharmaceuticals, Inc. (NASDAQ:ETON - Get Free Report) dropped 6% during trading on Tuesday . The company traded as low as $23.60 and last traded at $23.7510. Approximately 151,163 shares were traded during trading, a decline of 55% from the average daily volume of 337,931 shares. The stock had previously closed at $25.28.

Wall Street Analyst Weigh In

ETON has been the topic of a number of research analyst reports. B. Riley Financial raised their price objective on shares of Eton Pharmaceuticals from $26.00 to $31.00 and gave the company a "buy" rating in a research note on Friday, March 20th. Wall Street Zen upgraded shares of Eton Pharmaceuticals from a "hold" rating to a "buy" rating in a research note on Saturday, March 21st. HC Wainwright raised their price objective on shares of Eton Pharmaceuticals from $37.00 to $52.00 and gave the company a "buy" rating in a research note on Friday, March 20th. Craig Hallum raised their price objective on shares of Eton Pharmaceuticals from $30.00 to $35.00 and gave the company a "buy" rating in a research note on Friday, March 20th. Finally, Zacks Research lowered shares of Eton Pharmaceuticals from a "strong-buy" rating to a "hold" rating in a research note on Friday. Three research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of "Hold" and an average target price of $39.33.

Eton Pharmaceuticals Stock Down 6.9%

The company has a quick ratio of 1.17, a current ratio of 1.57 and a debt-to-equity ratio of 0.83. The firm has a market cap of $641.90 million, a price-to-earnings ratio of -130.39 and a beta of 0.97. The stock's 50 day moving average is $20.86 and its 200 day moving average is $18.28.

Eton Pharmaceuticals (NASDAQ:ETON - Get Free Report) last issued its earnings results on Thursday, March 19th. The company reported $0.05 earnings per share for the quarter, missing analysts' consensus estimates of $0.12 by ($0.07). The business had revenue of $21.28 million for the quarter, compared to the consensus estimate of $20.58 million. Eton Pharmaceuticals had a negative return on equity of 2.60% and a negative net margin of 5.75%. Analysts forecast that Eton Pharmaceuticals, Inc. will post 0.82 EPS for the current year.

Institutional Trading of Eton Pharmaceuticals

A number of large investors have recently added to or reduced their stakes in the business. Opaleye Management Inc. boosted its holdings in Eton Pharmaceuticals by 0.3% during the second quarter. Opaleye Management Inc. now owns 2,860,000 shares of the company's stock worth $40,755,000 after buying an additional 7,930 shares in the last quarter. Vanguard Group Inc. boosted its holdings in Eton Pharmaceuticals by 2.4% during the third quarter. Vanguard Group Inc. now owns 1,344,115 shares of the company's stock worth $29,208,000 after buying an additional 31,942 shares in the last quarter. State Street Corp boosted its holdings in Eton Pharmaceuticals by 14.5% during the fourth quarter. State Street Corp now owns 501,925 shares of the company's stock worth $8,488,000 after buying an additional 63,480 shares in the last quarter. Cannell Capital LLC boosted its holdings in Eton Pharmaceuticals by 17.3% during the third quarter. Cannell Capital LLC now owns 455,405 shares of the company's stock worth $9,896,000 after buying an additional 67,230 shares in the last quarter. Finally, Millennium Management LLC boosted its holdings in Eton Pharmaceuticals by 156.3% during the first quarter. Millennium Management LLC now owns 355,929 shares of the company's stock worth $4,620,000 after buying an additional 217,042 shares in the last quarter. 27.86% of the stock is currently owned by institutional investors.

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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