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

Key Points

• Eton shares gapped down — the stock opened at $26.04 after a $26.97 close and was last trading around $25.11, down roughly 6.8% on about 86,892 shares.
• Quarterly results were mixed — ETON reported EPS of $0.05 (missing the $0.12 consensus) while revenue of $21.28M slightly beat estimates, and the company still shows negative net margin and ROE.
• Analyst sentiment is mostly positive — the consensus rating is "Moderate Buy" with an average price target of $39.33 after several firms raised targets and issued Buy/Strong Buy ratings despite one Sell.

Eton Pharmaceuticals, Inc. (NASDAQ:ETON - Get Free Report)'s stock price gapped down before the market opened on Thursday . The stock had previously closed at $26.97, but opened at $26.04. Eton Pharmaceuticals shares last traded at $25.1090, with a volume of 86,892 shares changing hands.

Wall Street Analysts Forecast Growth

A number of research firms have weighed in on ETON. Weiss Ratings reiterated a "sell (d-)" rating on shares of Eton Pharmaceuticals in a research report on Thursday, January 22nd. HC Wainwright lifted their price target on shares of Eton Pharmaceuticals from $37.00 to $52.00 and gave the stock a "buy" rating in a research note on Friday, March 20th. Zacks Research raised shares of Eton Pharmaceuticals from a "hold" rating to a "strong-buy" rating in a research report on Thursday, March 19th. B. Riley Financial increased their price objective on shares of Eton Pharmaceuticals from $26.00 to $31.00 and gave the stock a "buy" rating in a research report on Friday, March 20th. Finally, Craig Hallum increased their price objective on shares of Eton Pharmaceuticals from $30.00 to $35.00 and gave the stock a "buy" rating in a research report on Friday, March 20th. One analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has a consensus rating of "Moderate Buy" and an average price target of $39.33.

Eton Pharmaceuticals Trading Down 6.8%

The firm has a market capitalization of $685.71 million, a PE ratio of -138.91 and a beta of 0.97. The stock's 50-day moving average price is $20.25 and its 200 day moving average price is $18.21. The company has a debt-to-equity ratio of 0.83, a current ratio of 1.57 and a quick ratio of 1.17.

Eton Pharmaceuticals (NASDAQ:ETON - Get Free Report) last released its quarterly earnings data on Thursday, March 19th. The company reported $0.05 earnings per share (EPS) 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 net margin of 5.75% and a negative return on equity of 2.60%. On average, sell-side analysts expect that Eton Pharmaceuticals, Inc. will post -0.14 EPS for the current fiscal year.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the company. Caitong International Asset Management Co. Ltd purchased a new position in Eton Pharmaceuticals in the fourth quarter valued at $50,000. Invesco Ltd. increased its holdings in Eton Pharmaceuticals by 46.1% in the fourth quarter. Invesco Ltd. now owns 19,691 shares of the company's stock valued at $333,000 after buying an additional 6,213 shares in the last quarter. XTX Topco Ltd increased its holdings in Eton Pharmaceuticals by 33.3% in the fourth quarter. XTX Topco Ltd now owns 32,527 shares of the company's stock valued at $550,000 after buying an additional 8,128 shares in the last quarter. Millennium Management LLC increased its holdings in Eton Pharmaceuticals by 400.1% in the fourth quarter. Millennium Management LLC now owns 79,331 shares of the company's stock valued at $1,341,000 after buying an additional 63,469 shares in the last quarter. Finally, Jump Financial LLC purchased a new position in Eton Pharmaceuticals in the fourth quarter valued at $178,000. Hedge funds and other 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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