Eton Pharmaceuticals (NASDAQ:ETON) Stock Price Down 5.4% - Should You Sell?

Key Points

• Eton Pharmaceuticals (NASDAQ:ETON) shares fell by 5.4% on Wednesday, trading around $20.57, while the trading volume decreased significantly by 43% compared to the average.
• Wall Street Zen upgraded Eton Pharmaceuticals from a "hold" to a "buy" rating, with an average price target of $29.67 based on three analysts' ratings.
• The company reported a loss of ($0.10) earnings per share, missing analyst estimates, but achieved revenue of $18.93 million, exceeding expectations.

Eton Pharmaceuticals, Inc. (NASDAQ:ETON - Get Free Report) shares dropped 5.4% on Wednesday . The stock traded as low as $20.55 and last traded at $20.57. Approximately 204,752 shares changed hands during trading, a decline of 43% from the average daily volume of 356,257 shares. The stock had previously closed at $21.73.

Analyst Ratings Changes

Separately, Wall Street Zen upgraded Eton Pharmaceuticals from a "hold" rating to a "buy" rating in a report on Friday, September 26th. Three investment analysts have rated the stock with a Buy rating, According to data from MarketBeat, the stock has an average rating of "Buy" and an average price target of $29.67.

Eton Pharmaceuticals Trading Down 6.8%

The stock has a 50 day simple moving average of $17.19 and a 200-day simple moving average of $15.98. The firm has a market capitalization of $543.33 million, a P/E ratio of -126.63 and a beta of 1.10. The company has a current ratio of 1.77, a quick ratio of 1.16 and a debt-to-equity ratio of 1.14.

Eton Pharmaceuticals (NASDAQ:ETON - Get Free Report) last released its quarterly earnings results on Thursday, August 7th. The company reported ($0.10) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.01) by ($0.09). The firm had revenue of $18.93 million for the quarter, compared to the consensus estimate of $16.71 million. Eton Pharmaceuticals had a negative net margin of 7.10% and a negative return on equity of 0.73%. On average, equities research analysts forecast that Eton Pharmaceuticals, Inc. will post -0.14 EPS for the current fiscal year.

Insider Activity

In other Eton Pharmaceuticals news, CFO James R. Gruber sold 2,631 shares of the business's stock in a transaction dated Wednesday, August 20th. The stock was sold at an average price of $16.02, for a total transaction of $42,148.62. Following the completion of the sale, the chief financial officer directly owned 204,753 shares in the company, valued at $3,280,143.06. The trade was a 1.27% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. 14.89% of the stock is currently owned by corporate insiders.

Institutional Investors Weigh In On Eton Pharmaceuticals

A number of large investors have recently made changes to their positions in the company. Opaleye Management Inc. grew its stake in shares of Eton Pharmaceuticals by 0.3% during the 2nd quarter. Opaleye Management Inc. now owns 2,860,000 shares of the company's stock valued at $40,755,000 after purchasing an additional 7,930 shares during the period. EcoR1 Capital LLC grew its stake in shares of Eton Pharmaceuticals by 2.0% during the 2nd quarter. EcoR1 Capital LLC now owns 2,030,544 shares of the company's stock valued at $28,935,000 after acquiring an additional 40,756 shares during the period. Nantahala Capital Management LLC grew its stake in shares of Eton Pharmaceuticals by 5.1% during the 1st quarter. Nantahala Capital Management LLC now owns 1,175,951 shares of the company's stock valued at $15,264,000 after acquiring an additional 57,468 shares during the period. Geode Capital Management LLC grew its stake in shares of Eton Pharmaceuticals by 98.8% during the 2nd quarter. Geode Capital Management LLC now owns 592,865 shares of the company's stock valued at $8,450,000 after acquiring an additional 294,617 shares during the period. Finally, Divisadero Street Capital Management LP bought a new position in shares of Eton Pharmaceuticals during the 2nd quarter valued at approximately $7,092,000. 27.86% of the stock is currently owned by institutional investors.

Eton Pharmaceuticals Company Profile

Eton Pharmaceuticals, Inc, a specialty pharmaceutical company, focuses on developing, acquiring, and commercializing pharmaceutical products for rare diseases. The company offers ALKINDI SPRINKLE, a replacement therapy for adrenocortical insufficiency in children under 17 years of age; Carglumic Acid for the treatment of acute and chronic hyperammonemia due to N-acetylglutamate Synthase deficiency; Betaine Anhydrous for the treatment of homocystinuria; and Nitisinone for the treatment of tyrosinemia type 1.

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