Eton Pharmaceuticals (NASDAQ:ETON) Stock Falls 7.7% - Should You Sell?

Key Points

• Eton Pharmaceuticals shares fell 7.7% to about $63.13, with trading volume 12% above its average.
• Analysts maintain a “Moderate Buy” consensus with an average price target of $79.75; five analysts rate the stock Buy and one rates it Hold.
• The company beat quarterly expectations, reporting $0.50 EPS versus $0.31 expected and $57.93 million in revenue versus $41.98 million forecast. Insiders also sold 79,166 shares in the last quarter.

Shares of Eton Pharmaceuticals, Inc. (NASDAQ:ETON - Get Free Report) dropped 7.7% on Thursday. The stock traded as low as $62.80 and last traded at $63.1310. 517,354 shares changed hands during trading, an increase of 12% from the average session volume of 460,329 shares. The stock had previously closed at $68.40.

Wall Street Analysts Forecast Growth

ETON has been the subject of a number of recent analyst reports. Craig Hallum reiterated a "buy" rating and set a $78.00 price target on shares of Eton Pharmaceuticals in a research report on Thursday, October 15th. Zacks Research cut Eton Pharmaceuticals from a "strong-buy" rating to a "hold" rating in a research note on Tuesday. Weiss Ratings upgraded Eton Pharmaceuticals from a "hold (c)" rating to a "buy (b-)" rating in a research report on Monday. Canaccord Genuity Group lifted their price objective on Eton Pharmaceuticals from $68.00 to $80.00 and gave the company a "buy" rating in a research note on Friday, November 6th. Finally, B. Riley Financial boosted their price objective on Eton Pharmaceuticals from $70.00 to $81.00 and gave the company a "buy" rating in a report on Tuesday. Five equities research analysts have rated the stock with a Buy rating and one has issued a Hold rating to the stock. According to MarketBeat, the company currently has a consensus rating of "Moderate Buy" and a consensus target price of $79.75.

Eton Pharmaceuticals Stock Down 8.7%

The business has a 50-day simple moving average of $55.19 and a 200-day simple moving average of $37.24. The company has a debt-to-equity ratio of 0.13, a quick ratio of 1.58 and a current ratio of 1.79. The company has a market cap of $1.80 billion, a price-to-earnings ratio of 41.57 and a beta of 0.89.

Eton Pharmaceuticals (NASDAQ:ETON - Get Free Report) last announced its quarterly earnings data on Thursday, November 5th. The company reported $0.50 EPS for the quarter, topping analysts' consensus estimates of $0.31 by $0.19. Eton Pharmaceuticals had a return on equity of 104.82% and a net margin of 35.35%. The business had revenue of $57.93 million during the quarter, compared to the consensus estimate of $41.98 million. On average, equities analysts anticipate that Eton Pharmaceuticals, Inc. will post 1.13 earnings per share for the current fiscal year.

Insider Activity at Eton Pharmaceuticals

In other news, Director Paul V. Maier sold 50,000 shares of the firm's stock in a transaction on Friday, August 28th. The shares were sold at an average price of $59.07, for a total value of $2,953,500.00. Following the sale, the director directly owned 59,745 shares in the company, valued at approximately $3,529,137.15. This trade represents a 45.56% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider David Krempa sold 25,000 shares of Eton Pharmaceuticals stock in a transaction on Monday, August 24th. The stock was sold at an average price of $65.07, for a total transaction of $1,626,750.00. Following the sale, the insider directly owned 37,025 shares of the company's stock, valued at approximately $2,409,216.75. This trade represents a 40.31% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold a total of 79,166 shares of company stock valued at $4,809,672 in the last quarter. 16.49% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Eton Pharmaceuticals

Several large investors have recently bought and sold shares of ETON. BlackRock Inc. acquired a new stake in Eton Pharmaceuticals in the second quarter valued at $68,629,000. Nantahala Capital Management LLC purchased a new position in shares of Eton Pharmaceuticals in the 2nd quarter valued at about $42,569,426. Pillsbury Lake Capital LLC purchased a new position in shares of Eton Pharmaceuticals in the 2nd quarter valued at about $14,015,083. Panoramic Capital LLC purchased a new position in shares of Eton Pharmaceuticals in the 2nd quarter valued at about $7,537,000. Finally, Cannell Capital LLC purchased a new position in shares of Eton Pharmaceuticals in the 2nd quarter valued at about $6,181,041. Hedge funds and other institutional investors own 27.86% of the company's stock.

Eton Pharmaceuticals Company Profile

Eton Pharmaceuticals is a specialty pharmaceutical company focused on developing and commercializing treatments for rare diseases and other conditions with limited treatment options. Its work includes bringing new medicines and reformulated or otherwise specialized drug products to market. The company's products include Alkindi Sprinkle, a hydrocortisone granule formulation used to treat adrenal insufficiency, and Eprontia, an oral solution of topiramate used to treat certain seizure disorders and prevent migraines.

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