Arrowhead Pharmaceuticals (NASDAQ:ARWR) Stock Price Breaks Below 200 Day Moving Average - Here's Why

Key Points

• Arrowhead Pharmaceuticals shares fell below their 200-day moving average, trading as low as $62.22 versus the $75.86 average, with the stock last at $62.35.
• Despite the technical decline, analysts maintain a generally positive view: 10 rate the stock Buy, with an average target price of $98.31 compared with the current price.
• The company reported strong year-over-year revenue growth of 171% to $75.25 million, but missed quarterly earnings expectations and remains unprofitable, with negative margins and an expected full-year loss.

Arrowhead Pharmaceuticals, Inc. (NASDAQ:ARWR - Get Free Report) shares crossed below its 200-day moving average during trading on Monday. The stock has a 200-day moving average of $75.86 and traded as low as $62.22. Arrowhead Pharmaceuticals shares last traded at $62.35, with a volume of 2,249,374 shares traded.

Analyst Upgrades and Downgrades

Several research firms have commented on ARWR. Piper Sandler reiterated an "overweight" rating and issued a $126.00 target price (up from $110.00) on shares of Arrowhead Pharmaceuticals in a research report on Thursday, July 23rd. Citigroup initiated coverage on shares of Arrowhead Pharmaceuticals in a research report on Tuesday, September 8th. They issued a "buy" rating and a $108.00 price target for the company. The Goldman Sachs Group assumed coverage on shares of Arrowhead Pharmaceuticals in a research note on Thursday, September 24th. They set a "neutral" rating and a $74.00 price target for the company. B. Riley Financial lifted their price target on shares of Arrowhead Pharmaceuticals from $101.00 to $123.00 and gave the stock a "buy" rating in a report on Thursday, July 30th. Finally, Chardan Capital reissued a "buy" rating and issued a $115.00 price objective on shares of Arrowhead Pharmaceuticals in a research note on Monday, August 31st. Ten research analysts have rated the stock with a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average target price of $98.31.

Arrowhead Pharmaceuticals Stock Down 2.9%

The stock's 50-day moving average price is $80.37 and its 200-day moving average price is $75.86. 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 stock has a market cap of $8.78 billion, a price-to-earnings ratio of -27.71 and a beta of 1.29.

Arrowhead Pharmaceuticals (NASDAQ:ARWR - Get Free Report) last posted its quarterly earnings data 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 firm had revenue of $75.25 million for the quarter, compared to analyst estimates of $44.17 million. During the same quarter last year, the company earned ($1.26) earnings per share. The company's quarterly revenue was up 171.0% compared to the same quarter last year. On average, sell-side analysts expect that Arrowhead Pharmaceuticals, Inc. will post -3.62 earnings per share for the current year.

Insider Activity

In related news, Director Michael Perry sold 11,600 shares of the firm's stock in a transaction that occurred on 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 completion of the sale, the director owned 111,459 shares of the company's stock, valued at $9,730,370.70. This trade represents a 9.43% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. Also, Director Adeoye Olukotun sold 2,000 shares of the business's 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 completion of the transaction, the director directly owned 31,600 shares in the company, valued at approximately $2,747,936. This trade represents a 5.95% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 3.60% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

A number of institutional investors have recently modified their holdings of the stock. Carolina Wealth Advisors LLC boosted its holdings in shares of Arrowhead Pharmaceuticals by 80.6% in the 2nd quarter. Carolina Wealth Advisors LLC now owns 345 shares of the biotechnology company's stock valued at $28,000 after purchasing an additional 154 shares during the last quarter. First Horizon Corp raised its position in shares of Arrowhead Pharmaceuticals by 36.2% in the 1st quarter. First Horizon Corp now owns 654 shares of the biotechnology company's stock valued at $41,000 after purchasing an additional 174 shares in the last quarter. Optiver Holding B.V. grew its holdings in Arrowhead Pharmaceuticals by 83.8% during the 1st quarter. Optiver Holding B.V. now owns 408 shares of the biotechnology company's stock worth $26,000 after acquiring an additional 186 shares in the last quarter. Versant Capital Management Inc increased its holdings in 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 buying an additional 248 shares during the last quarter. Finally, QRG Capital Management Inc. raised its position in shares of Arrowhead Pharmaceuticals by 7.1% during the 2nd quarter. QRG Capital Management Inc. now owns 4,810 shares of the biotechnology company's stock valued at $392,000 after acquiring an additional 317 shares in the last quarter. Institutional investors and hedge funds own 62.61% of the company's stock.

About Arrowhead Pharmaceuticals

Arrowhead Pharmaceuticals, Inc is a biopharmaceutical company focused on developing medicines that silence disease-causing genes. Its research is based primarily on RNA interference (RNAi), a biological process that reduces the production of specific proteins by targeting messenger RNA before it can be used to make those proteins.

The company uses its proprietary Targeted RNAi Molecule (TRiM) platform to design and deliver RNAi therapeutics to selected tissues, including the liver and lungs.

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