Organogenesis (NASDAQ:ORGO) Shares Gap Down Following Weak Earnings

Key Points

• Organogenesis (NASDAQ:ORGO)** shares gapped down from a closing price of $4.52 to an opening price of $4.06 before trading at $4.04 with a volume of 377,559 shares.
• Analysts from Cantor Fitzgerald and BTIG Research have upgraded the stock's outlook, increasing the price target and reiterating a "buy" rating, respectively.
• The company's recent quarterly earnings showed an EPS of ($0.13), significantly missing estimates, with revenue of $86.69 million compared to expected figures of $90.77 million.

Organogenesis (NASDAQ:ORGO - Get Free Report) shares gapped down prior to trading on Friday after the company announced weaker than expected quarterly earnings. The stock had previously closed at $4.52, but opened at $4.06. Organogenesis shares last traded at $4.04, with a volume of 377,559 shares traded.

The company reported ($0.09) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.01) by ($0.08). The firm had revenue of $101.01 million for the quarter, compared to the consensus estimate of $104.75 million. Organogenesis had a negative net margin of 1.92% and a negative return on equity of 0.37%.

Analyst Ratings Changes

ORGO has been the subject of several research reports. Cantor Fitzgerald raised their price objective on Organogenesis from $7.00 to $9.00 and gave the stock an "overweight" rating in a research note on Friday. BTIG Research reissued a "buy" rating on shares of Organogenesis in a research note on Tuesday, July 15th.

Insider Activity

In other news, insider Lori Freedman acquired 9,022 shares of the business's stock in a transaction that occurred on Friday, June 6th. The stock was acquired at an average cost of $2.99 per share, for a total transaction of $26,975.78. Following the completion of the acquisition, the insider owned 846,459 shares in the company, valued at approximately $2,530,912.41. The trade was a 1.08% increase in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Insiders acquired a total of 252,264 shares of company stock valued at $725,732 in the last ninety days. 33.00% of the stock is owned by corporate insiders.

Institutional Trading of Organogenesis

Several hedge funds and other institutional investors have recently modified their holdings of the company. American Century Companies Inc. raised its holdings in Organogenesis by 10.4% during the fourth quarter. American Century Companies Inc. now owns 98,892 shares of the company's stock valued at $316,000 after buying an additional 9,311 shares in the last quarter. JPMorgan Chase & Co. raised its holdings in Organogenesis by 36.4% during the fourth quarter. JPMorgan Chase & Co. now owns 280,997 shares of the company's stock valued at $899,000 after buying an additional 75,054 shares in the last quarter. O Shaughnessy Asset Management LLC raised its holdings in Organogenesis by 194.2% during the fourth quarter. O Shaughnessy Asset Management LLC now owns 47,406 shares of the company's stock valued at $152,000 after buying an additional 31,290 shares in the last quarter. Wellington Management Group LLP raised its holdings in Organogenesis by 5.2% during the fourth quarter. Wellington Management Group LLP now owns 254,282 shares of the company's stock valued at $814,000 after buying an additional 12,634 shares in the last quarter. Finally, Wells Fargo & Company MN raised its holdings in Organogenesis by 29.6% during the fourth quarter. Wells Fargo & Company MN now owns 41,471 shares of the company's stock valued at $133,000 after buying an additional 9,464 shares in the last quarter. 49.57% of the stock is currently owned by hedge funds and other institutional investors.

Organogenesis Price Performance

The company has a fifty day simple moving average of $4.01 and a two-hundred day simple moving average of $4.07. The company has a market capitalization of $593.07 million, a P/E ratio of -33.10 and a beta of 1.76.

Organogenesis Company Profile

Organogenesis Holdings Inc, a regenerative medicine company, develops, manufactures, and commercializes solutions for the advanced wound care, and surgical and sports medicine markets in the United States. The company's advanced wound care products include Affinity, an amniotic membrane in which viable cells, growth factors/cytokines, and ECM proteins in the native tissue are preserved; Novachor, a chorion membrane in which viable cells, growth factors/cytokines, and ECM proteins in the native tissue are preserved; Apligraf, a bioengineered living cell therapy that produce spectrum of cytokines and growth factors; Dermagraft, a bioengineered product that produces human collagen, ECM, proteins, cytokines, and growth factors; NuShield, dehydrated placental tissue covering amnion and chorion membranes for spongy/intermediate layer intact; and PuraPly AM, an antimicrobial barrier that enables conformability and fluid drainage.