Organogenesis (NASDAQ:ORGO) Shares Gap Down After Earnings Miss

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)'s share price gapped down prior to trading on Friday following a weaker than expected earnings announcement. 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 trading hands.

The company reported ($0.09) EPS for the quarter, missing the consensus estimate of ($0.01) by ($0.08). Organogenesis had a negative return on equity of 0.36% and a negative net margin of 1.92%. The company had revenue of $101.01 million for the quarter, compared to analyst estimates of $104.75 million.

Analysts Set New Price Targets

Several research firms have recently commented on ORGO. Cantor Fitzgerald lifted their price objective on shares of Organogenesis from $7.00 to $9.00 and gave the stock an "overweight" rating in a research note on Friday. BTIG Research reiterated a "buy" rating on shares of Organogenesis in a research note on Tuesday, July 15th.

Insiders Place Their Bets

In other news, insider Lori Freedman acquired 142,379 shares of the business's stock in a transaction on Thursday, June 5th. The stock was bought at an average price of $2.91 per share, with a total value of $414,322.89. Following the completion of the acquisition, the insider owned 837,437 shares of the company's stock, valued at approximately $2,436,941.67. This represents a 20.48% increase in their ownership of the stock. The acquisition was disclosed in a document filed with the SEC, which is accessible through the SEC website. Insiders have acquired a total of 252,264 shares of company stock valued at $725,732 over the last three months. 33.00% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in ORGO. Farther Finance Advisors LLC purchased a new position in Organogenesis in the second quarter valued at $35,000. Ground Swell Capital LLC purchased a new stake in shares of Organogenesis during the second quarter worth about $39,000. Merit Financial Group LLC purchased a new stake in shares of Organogenesis during the first quarter worth about $45,000. ProShare Advisors LLC increased its stake in shares of Organogenesis by 49.0% during the fourth quarter. ProShare Advisors LLC now owns 20,329 shares of the company's stock worth $65,000 after purchasing an additional 6,689 shares in the last quarter. Finally, Victory Capital Management Inc. purchased a new stake in shares of Organogenesis during the first quarter worth about $67,000. Hedge funds and other institutional investors own 49.57% of the company's stock.

Organogenesis Price Performance

The firm has a market cap of $577.19 million, a PE ratio of -32.50 and a beta of 1.76. The business's 50 day moving average price is $3.98 and its 200 day moving average price is $4.06.

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.