Arrowhead Pharmaceuticals (NASDAQ:ARWR) Shares Gap Down - Should You Sell?

Key Points

• Arrowhead shares plunged: The stock opened at $52.49 versus its prior close of $58.16 and was last trading at $48.65, on volume of about 1.17 million shares.
• Analysts maintain a “Moderate Buy” consensus, with an average price target of $99.07; recent targets range from $74 to $126.
• Two directors reported selling shares in August: Adeoye Olukotun sold 2,000 shares and Michael Perry sold 11,600 shares.

Arrowhead Pharmaceuticals, Inc. (NASDAQ:ARWR - Get Free Report)'s share price gapped down before the market opened on Monday. The stock had previously closed at $58.16, but opened at $52.49. Arrowhead Pharmaceuticals shares last traded at $48.6490, with a volume of 1,173,148 shares traded.

Analyst Upgrades and Downgrades

A number of brokerages recently weighed in on ARWR. JPMorgan Chase & Co. increased their price target on shares of Arrowhead Pharmaceuticals from $88.00 to $95.00 and gave the company an "overweight" rating in a research report on Friday, July 17th. Piper Sandler reaffirmed an "overweight" rating and issued a $126.00 target price (up from $110.00) on shares of Arrowhead Pharmaceuticals in a research note on Thursday, July 23rd. HC Wainwright reaffirmed a "buy" rating and issued a $120.00 target price on shares of Arrowhead Pharmaceuticals in a research note on Thursday, October 15th. The Goldman Sachs Group began coverage on shares of Arrowhead Pharmaceuticals in a report on Thursday, September 24th. They issued a "neutral" rating and a $74.00 target price on the stock. Finally, UBS Group began coverage on shares of Arrowhead Pharmaceuticals in a research report on Thursday, October 15th. They set a "buy" rating and a $109.00 price target on the stock. One research analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, Arrowhead Pharmaceuticals has an average rating of "Moderate Buy" and an average price target of $99.07.

Arrowhead Pharmaceuticals Price Performance

The company has a current ratio of 5.90, a quick ratio of 5.90 and a debt-to-equity ratio of 1.77. The company has a fifty day moving average price of $66.91 and a two-hundred day moving average price of $71.48. The firm has a market cap of $6.74 billion, a P/E ratio of -21.21 and a beta of 1.34.

Insider Activity at Arrowhead Pharmaceuticals

In other Arrowhead Pharmaceuticals news, Director Adeoye Olukotun sold 2,000 shares of Arrowhead Pharmaceuticals stock in a transaction that occurred on Tuesday, August 18th. The shares were sold at an average price of $86.96, for a total value of $173,920.00. Following the transaction, the director owned 31,600 shares of the company's stock, valued at approximately $2,747,936. The trade was a 5.95% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. Also, Director Michael Perry sold 11,600 shares of Arrowhead Pharmaceuticals stock in a transaction that occurred on Tuesday, August 18th. The shares were sold at an average price of $87.30, for a total transaction of $1,012,680.00. Following the completion of the transaction, the director directly owned 111,459 shares in the company, valued at approximately $9,730,370.70. The trade was a 9.43% decrease in their position. The disclosure for this sale is available in the SEC filing. Company insiders own 3.60% of the company's stock.

Hedge Funds Weigh In On Arrowhead Pharmaceuticals

A number of institutional investors and hedge funds have recently added to or reduced their stakes in ARWR. Versant Capital Management Inc boosted its stake in shares of Arrowhead Pharmaceuticals by 285.1% during the 2nd quarter. Versant Capital Management Inc now owns 335 shares of the biotechnology company's stock worth $27,000 after acquiring an additional 248 shares during the period. Carolina Wealth Advisors LLC increased its holdings in shares of Arrowhead Pharmaceuticals by 80.6% during the 2nd quarter. Carolina Wealth Advisors LLC now owns 345 shares of the biotechnology company's stock worth $28,000 after acquiring an additional 154 shares during the last quarter. Optiver Holding B.V. raised its stake in Arrowhead Pharmaceuticals by 83.8% in the 1st quarter. Optiver Holding B.V. now owns 408 shares of the biotechnology company's stock valued at $26,000 after acquiring an additional 186 shares during the period. Persistent Asset Partners Ltd bought a new stake in Arrowhead Pharmaceuticals in the 2nd quarter valued at $39,000. Finally, Allied Private Wealth LLC bought a new stake in Arrowhead Pharmaceuticals in the 2nd quarter valued at $43,000. 62.61% of the stock is owned by institutional investors and hedge funds.

About Arrowhead Pharmaceuticals

Arrowhead Pharmaceuticals is a biotechnology company that develops medicines using RNA interference (RNAi), a biological process that can reduce the production of specific proteins by silencing the genes that encode them. Its proprietary Targeted RNAi Molecule (TRiM) platform is designed to deliver RNAi treatments to targeted tissues.

The company's research and development programs address a range of conditions, including liver, cardiometabolic, pulmonary and neurological diseases. Its work centers on investigational medicines and drug-development partnerships.

Founded in 1989 as Arrowhead Research Corporation, the company adopted the name Arrowhead Pharmaceuticals in 2015.

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