Arrowhead Pharmaceuticals (NASDAQ:ARWR) Shares Gap Up - Here's Why

Key Points

• Arrowhead Pharmaceuticals shares opened higher but later fell 9.8%, trading at approximately $74.83 after closing at $80.67 previously.
• Analyst sentiment remains positive, with a consensus rating of “Moderate Buy” from 14 analysts and an average price target of $99.15; recent targets range from $72 to $126.
• The company reported quarterly revenue of $75.25 million, up 171% year over year and above estimates, but its adjusted loss of $1.36 per share was wider than expected. Two directors also sold shares worth a combined approximately $1.19 million.

Arrowhead Pharmaceuticals, Inc. (NASDAQ:ARWR - Get Free Report) gapped up prior to trading on Tuesday . The stock had previously closed at $80.67, but opened at $82.89. Arrowhead Pharmaceuticals shares last traded at $74.8290, with a volume of 680,012 shares changing hands.

Wall Street Analysts Forecast Growth

ARWR has been the subject of several recent research reports. Piper Sandler reiterated an "overweight" rating and set a $126.00 target price (up from $110.00) on shares of Arrowhead Pharmaceuticals in a research report on Thursday, July 23rd. HC Wainwright reiterated a "buy" rating and issued a $120.00 price target on shares of Arrowhead Pharmaceuticals in a research report on Tuesday, September 1st. Wall Street Zen raised shares of Arrowhead Pharmaceuticals from a "sell" rating to a "hold" rating in a research note on Saturday, June 27th. Leerink Partners upped their price objective on shares of Arrowhead Pharmaceuticals from $61.00 to $72.00 and gave the company a "market perform" rating in a research report on Wednesday, June 17th. Finally, Citigroup started coverage on Arrowhead Pharmaceuticals in a research note on Tuesday, September 8th. They issued a "buy" rating and a $108.00 target price for the company. Ten research analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $99.15.

Arrowhead Pharmaceuticals Stock Down 9.8%

The firm has a market cap of $10.25 billion, a P/E ratio of -32.41 and a beta of 1.28. The company has a quick ratio of 5.90, a current ratio of 5.90 and a debt-to-equity ratio of 1.77. The firm has a fifty day moving average of $84.18 and a 200-day moving average of $75.22.

Arrowhead Pharmaceuticals (NASDAQ:ARWR - Get Free Report) last posted its quarterly earnings results on Tuesday, August 4th. The biotechnology company reported ($1.36) earnings per share for the quarter, missing the consensus estimate of ($1.23) by ($0.13). Arrowhead Pharmaceuticals had a negative return on equity of 60.06% and a negative net margin of 47.79%.The company had revenue of $75.25 million for the quarter, compared to analyst estimates of $44.17 million. During the same period last year, the firm earned ($1.26) EPS. The firm's revenue for the quarter was up 171.0% compared to the same quarter last year. On average, equities research analysts anticipate that Arrowhead Pharmaceuticals, Inc. will post -3.62 earnings per share for the current year.

Insiders Place Their Bets

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

Institutional Investors Weigh In On Arrowhead Pharmaceuticals

Several hedge funds have recently bought and sold shares of ARWR. Carolina Wealth Advisors LLC lifted its holdings in 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 purchasing an additional 154 shares during the last quarter. First Horizon Corp increased its position in Arrowhead Pharmaceuticals by 36.2% during the 1st quarter. First Horizon Corp now owns 654 shares of the biotechnology company's stock worth $41,000 after buying an additional 174 shares during the period. PNC Financial Services Group Inc. lifted its holdings in shares of Arrowhead Pharmaceuticals by 1.6% during the fourth quarter. PNC Financial Services Group Inc. now owns 11,102 shares of the biotechnology company's stock worth $737,000 after buying an additional 178 shares in the last quarter. Optiver Holding B.V. lifted its holdings in shares of Arrowhead Pharmaceuticals by 83.8% during the first quarter. Optiver Holding B.V. now owns 408 shares of the biotechnology company's stock worth $26,000 after buying an additional 186 shares in the last quarter. Finally, Versant Capital Management Inc boosted its position in shares of Arrowhead Pharmaceuticals by 285.1% in the second quarter. Versant Capital Management Inc now owns 335 shares of the biotechnology company's stock valued at $27,000 after acquiring an additional 248 shares during the period. 62.61% of the stock is currently owned by institutional investors and hedge funds.

Arrowhead Pharmaceuticals Company Profile

Arrowhead Pharmaceuticals, Inc NASDAQ: ARWR is a biopharmaceutical company focused on developing medicines that silence disease-causing genes. The company uses RNA interference (RNAi), a biological process that reduces the production of specific proteins, to target conditions that may be difficult to treat with conventional drugs.

Arrowhead's proprietary TRiM platform is designed to deliver RNAi-based therapies to different tissues, including the liver, lungs and other organs. Its investigational pipeline has included candidates for cardiovascular and metabolic diseases, liver disorders, pulmonary conditions and inflammatory diseases.

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