Eton Pharmaceuticals (NASDAQ:ETON) Stock Price Down 4.6% - Time to Sell?

Key Points

• Eton Pharmaceuticals shares fell 4.6% to $44.28, with trading volume about 53% below average.
• Analyst sentiment remains mixed but leans positive: the stock has a consensus “Moderate Buy” rating and a $52.50 price target, despite recent “sell” and “strong sell” downgrades.
• The company missed quarterly EPS estimates but exceeded revenue expectations, while insiders have sold 150,000 shares worth approximately $4.85 million over the past three months.

Eton Pharmaceuticals, Inc. (NASDAQ:ETON - Get Free Report) traded down 4.6% on Monday . The company traded as low as $43.49 and last traded at $44.2750. Approximately 185,599 shares traded hands during mid-day trading, a decline of 53% from the average session volume of 392,865 shares. The stock had previously closed at $46.42.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently issued reports on ETON shares. Wall Street Zen upgraded shares of Eton Pharmaceuticals from a "buy" rating to a "strong-buy" rating in a research report on Saturday, June 13th. Weiss Ratings reiterated a "sell (d-)" rating on shares of Eton Pharmaceuticals in a research report on Friday, July 17th. Canaccord Genuity Group initiated coverage on shares of Eton Pharmaceuticals in a research note on Thursday, July 16th. They set a "buy" rating and a $60.00 price target for the company. Zacks Research downgraded shares of Eton Pharmaceuticals from a "hold" rating to a "strong sell" rating in a research report on Monday, July 13th. Finally, Craig Hallum lifted their price objective on shares of Eton Pharmaceuticals from $40.00 to $62.00 and gave the company a "buy" rating in a research note on Tuesday, July 28th. One investment analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating and two have given a Sell rating to the company's stock. According to MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $52.50.

Eton Pharmaceuticals Price Performance

The company has a market cap of $1.24 billion, a price-to-earnings ratio of -643.41 and a beta of 0.86. The company's 50 day moving average price is $35.98 and its 200 day moving average price is $26.56. 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 results on Thursday, May 14th. The company reported $0.05 earnings per share (EPS) for the quarter, missing analysts' consensus estimates of $0.10 by ($0.05). The firm had revenue of $24.27 million for the quarter, compared to analyst estimates of $22.31 million. Eton Pharmaceuticals had a negative return on equity of 5.68% and a negative net margin of 1.70%. Equities research analysts forecast that Eton Pharmaceuticals, Inc. will post 0.75 earnings per share 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 stock was sold at an average price of $32.48, for a total transaction of $1,624,000.00. Following the completion of the transaction, the director directly owned 50,000 shares of the company's stock, valued at approximately $1,624,000. This represents a 50.00% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. Also, insider David Krempa sold 42,797 shares of the firm's stock in a transaction that occurred on Friday, May 22nd. The shares were sold at an average price of $33.39, for a total value of $1,428,991.83. Following the completion of the sale, the insider directly owned 25,249 shares of the company's stock, valued at $843,064.11. This represents a 62.89% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Over the last three months, insiders have 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

Institutional investors and hedge funds have recently made changes to their positions in the stock. Deutsche Bank AG lifted its stake in shares of Eton Pharmaceuticals by 4.9% in the fourth quarter. Deutsche Bank AG now owns 18,249 shares of the company's stock valued at $309,000 after purchasing an additional 850 shares during the period. Intech Investment Management LLC grew its position in Eton Pharmaceuticals by 11.1% during the fourth quarter. Intech Investment Management LLC now owns 12,421 shares of the company's stock worth $210,000 after buying an additional 1,244 shares during the period. State of Wyoming grew its position in Eton Pharmaceuticals by 16.4% during the first quarter. State of Wyoming now owns 9,498 shares of the company's stock worth $234,000 after buying an additional 1,337 shares during the period. Man Group plc increased its holdings in Eton Pharmaceuticals by 6.0% in the second quarter. Man Group plc now owns 23,754 shares of the company's stock valued at $338,000 after buying an additional 1,350 shares in the last quarter. Finally, Quarry LP purchased a new position in Eton Pharmaceuticals in the third quarter valued at about $37,000. 27.86% of the stock is owned by institutional investors and hedge funds.

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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