Olema Pharmaceuticals (NASDAQ:OLMA) Shares Up 8.4% - Still a Buy?

Key Points

• Shares rose ~8.4% to about $14.55 (intraday high $14.62) on Tuesday, but trading volume was light at ~142,359 shares—about 91% below the average daily volume of 1.67 million.
• Brokerage coverage is broadly positive with 11 Buys, 2 Holds and 1 Sell and a consensus rating of "Moderate Buy" and a consensus target of $44.40, though some firms have trimmed price targets (e.g., Goldman Sachs cut its target from $38 to $27).
• Insiders have sold roughly 217,311 shares (~$5.97M) over the past three months while institutional investors own about 91.78% of the stock, and insiders retain ~16.36% ownership.

Olema Pharmaceuticals, Inc. (NASDAQ:OLMA - Get Free Report) shares rose 8.4% during trading on Tuesday . The company traded as high as $14.62 and last traded at $14.55. Approximately 142,359 shares changed hands during trading, a decline of 91% from the average daily volume of 1,670,763 shares. The stock had previously closed at $13.42.

Analyst Ratings Changes

Several equities research analysts have recently weighed in on OLMA shares. Wolfe Research started coverage on Olema Pharmaceuticals in a research note on Friday. They issued a "peer perform" rating on the stock. The Goldman Sachs Group decreased their price target on Olema Pharmaceuticals from $38.00 to $27.00 and set a "buy" rating on the stock in a research note on Wednesday, March 18th. Stifel Nicolaus began coverage on Olema Pharmaceuticals in a research report on Wednesday, February 11th. They issued a "buy" rating and a $48.00 price target on the stock. HC Wainwright dropped their price objective on Olema Pharmaceuticals from $45.00 to $38.00 and set a "buy" rating for the company in a research note on Monday, March 9th. Finally, Piper Sandler initiated coverage on Olema Pharmaceuticals in a report on Wednesday, January 7th. They set an "overweight" rating and a $40.00 price objective for the company. Eleven equities research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the company presently has an average rating of "Moderate Buy" and a consensus target price of $44.40.

Olema Pharmaceuticals Stock Up 9.5%

The company has a market cap of $1.28 billion, a P/E ratio of -7.89 and a beta of 1.93. The company has a debt-to-equity ratio of 0.01, a current ratio of 9.95 and a quick ratio of 9.95. The business's 50 day moving average price is $21.35 and its 200-day moving average price is $19.17.

Olema Pharmaceuticals (NASDAQ:OLMA - Get Free Report) last released its quarterly earnings results on Monday, March 16th. The company reported ($0.50) earnings per share for the quarter, beating analysts' consensus estimates of ($0.51) by $0.01. On average, analysts anticipate that Olema Pharmaceuticals, Inc. will post -2.33 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, insider Shawnte Mitchell sold 25,000 shares of Olema Pharmaceuticals stock in a transaction dated Wednesday, March 4th. The stock was sold at an average price of $24.25, for a total value of $606,250.00. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, Director Cyrus Harmon sold 10,000 shares of the company's stock in a transaction dated Tuesday, January 20th. The stock was sold at an average price of $26.88, for a total transaction of $268,800.00. Following the transaction, the director owned 727,770 shares in the company, valued at approximately $19,562,457.60. This trade represents a 1.36% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 217,311 shares of company stock valued at $5,965,254. 16.36% of the stock is owned by corporate insiders.

Institutional Trading of Olema Pharmaceuticals

Several hedge funds have recently modified their holdings of OLMA. Virtu Financial LLC acquired a new position in Olema Pharmaceuticals during the 4th quarter worth $1,061,000. Invesco Ltd. increased its stake in shares of Olema Pharmaceuticals by 25.0% in the 4th quarter. Invesco Ltd. now owns 155,732 shares of the company's stock valued at $3,893,000 after buying an additional 31,098 shares during the period. EP Wealth Advisors LLC bought a new stake in shares of Olema Pharmaceuticals during the fourth quarter worth $250,000. Vestal Point Capital LP acquired a new position in shares of Olema Pharmaceuticals during the fourth quarter valued at $41,250,000. Finally, Wellington Management Group LLP lifted its stake in shares of Olema Pharmaceuticals by 8.2% during the fourth quarter. Wellington Management Group LLP now owns 220,971 shares of the company's stock valued at $5,524,000 after acquiring an additional 16,764 shares during the period. 91.78% of the stock is owned by institutional investors.

About Olema Pharmaceuticals

Olema Pharmaceuticals, Inc, a clinical-stage biopharmaceutical company, focuses on the discovery, development, and commercialization of therapies for women's cancers. Its lead product candidate is OP-1250, an estrogen receptor (ER) antagonist and a selective ER degrader, which is in Phase 3 clinical trial for the treatment of recurrent, locally advanced, or metastatic estrogen receptor-positive, human epidermal growth factor receptor 2-negative breast cancer; and OP-1250 combine with CDK4/6 inhibitors palbociclib, ribociclib, and alpelisib in Phase 1/2 clinical trial for the treatment of recurrent, locally advanced, or metastatic estrogen receptor-positive human epidermal growth factor receptor 2-negative breast cancer, as well as develops OPERA-01 for the of ER+/HER2- advanced or metastatic breast cancer.

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