Stock Traders Purchase Large Volume of Trevi Therapeutics Call Options (NASDAQ:TRVI)

Key Points

• Unusual options activity: Traders purchased 7,500 Trevi Therapeutics call options, roughly 488% above the average volume of 1,275 contracts.
• Shares declined 1.1% to $13.57, below both the 50-day and 200-day moving averages. Trevi reported quarterly EPS of negative $0.11, in line with analyst expectations.
• Analysts remain broadly bullish: The stock has a consensus “Buy” rating and a $27.08 price target, though a director recently sold 39,473 shares and retained only 6,351 shares.

Trevi Therapeutics, Inc. (NASDAQ:TRVI - Get Free Report) was the target of some unusual options trading activity on Tuesday. Stock traders purchased 7,500 call options on the stock. This represents an increase of approximately 488% compared to the average volume of 1,275 call options.

Trevi Therapeutics Trading Down 1.1%

Shares of TRVI stock traded down $0.15 during trading hours on Tuesday, reaching $13.57. The company's stock had a trading volume of 578,841 shares, compared to its average volume of 1,708,330. The firm's fifty day simple moving average is $16.77 and its 200 day simple moving average is $15.53. The stock has a market capitalization of $1.93 billion, a P/E ratio of -39.91 and a beta of 0.98. Trevi Therapeutics has a one year low of $9.28 and a one year high of $20.22.

Trevi Therapeutics (NASDAQ:TRVI - Get Free Report) last released its quarterly earnings results on Thursday, August 6th. The company reported ($0.11) earnings per share for the quarter, meeting the consensus estimate of ($0.11). As a group, equities research analysts forecast that Trevi Therapeutics will post -0.48 earnings per share for the current fiscal year.

Wall Street Analysts Forecast Growth

A number of brokerages have issued reports on TRVI. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Trevi Therapeutics in a research report on Friday, July 17th. Raymond James Financial reiterated a "strong-buy" rating and set a $40.00 target price on shares of Trevi Therapeutics in a research report on Friday, August 7th. Cantor Fitzgerald boosted their price objective on Trevi Therapeutics from $25.00 to $30.00 and gave the company an "overweight" rating in a research note on Friday, August 7th. BMO Capital Markets began coverage on shares of Trevi Therapeutics in a report on Monday, July 20th. They set an "outperform" rating and a $36.00 target price on the stock. Finally, Oppenheimer reissued an "outperform" rating on shares of Trevi Therapeutics in a report on Friday, September 25th. Two investment analysts have rated the stock with a Strong Buy rating, ten have assigned a Buy rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of "Buy" and a consensus target price of $27.08.

Insider Activity at Trevi Therapeutics

In other news, Director Michael Heffernan sold 39,473 shares of the firm's stock in a transaction that occurred on Tuesday, September 15th. The shares were sold at an average price of $15.09, for a total transaction of $595,647.57. Following the completion of the sale, the director owned 6,351 shares of the company's stock, valued at $95,836.59. This trade represents a 86.14% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through this link. 15.39% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Trevi Therapeutics

Institutional investors have recently made changes to their positions in the business. KBC Group NV purchased a new stake in shares of Trevi Therapeutics in the first quarter worth $29,000. Hilton Head Capital Partners LLC purchased a new position in shares of Trevi Therapeutics in the 4th quarter worth $40,000. Caitong International Asset Management Co. Ltd purchased a new position in Trevi Therapeutics in the fourth quarter worth about $50,000. Avidity Partners Management LP bought a new position in shares of Trevi Therapeutics during the 1st quarter valued at approximately $79,000. Finally, Seven Fleet Capital Management LP bought a new position in Trevi Therapeutics during the fourth quarter valued at $89,000. Institutional investors own 95.76% of the company's stock.

About Trevi Therapeutics

Trevi Therapeutics, Inc is a clinical-stage biopharmaceutical company focused on developing therapies for conditions involving chronic cough and other debilitating symptoms for which available treatment options are limited. The company's lead product candidate is Haduvio, an extended-release formulation of nalbuphine, an opioid receptor modulator being investigated as a potential treatment for chronic cough.

Trevi is evaluating Haduvio for chronic cough associated with idiopathic pulmonary fibrosis (IPF), a progressive lung disease, as well as refractory chronic cough, which persists despite treatment of underlying conditions.

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