Eton Pharmaceuticals (NASDAQ:ETON) Stock Price Down 7.4% - Here's Why

Key Points

• Eton Pharmaceuticals shares fell 7.4% to about $54.82 in mid-day trading, with volume roughly 66% below its average.
• Analysts remain broadly positive, with a consensus “Moderate Buy” rating and an average price target of $67.50; recent firms raised targets as high as $70.
• The company exceeded quarterly expectations, reporting $0.43 in earnings per share and $37.59 million in revenue, while two insiders recently sold a combined 75,000 shares.

Eton Pharmaceuticals, Inc. (NASDAQ:ETON - Get Free Report)'s stock price traded down 7.4% during mid-day trading on Wednesday. The stock traded as low as $56.22 and last traded at $54.8180. Approximately 148,892 shares changed hands during trading, a decline of 66% from the average session volume of 432,453 shares. The stock had previously closed at $59.19.

Wall Street Analysts Forecast Growth

Several brokerages have recently weighed in on ETON. Weiss Ratings upgraded Eton Pharmaceuticals from a "sell (d-)" rating to a "hold (c)" rating in a report on Tuesday, September 22nd. B. Riley Financial restated a "buy" rating and set a $70.00 price objective (up from $40.00) on shares of Eton Pharmaceuticals in a report on Friday, August 14th. Craig Hallum upped their price objective on Eton Pharmaceuticals from $40.00 to $62.00 and gave the company a "buy" rating in a research report on Tuesday, July 28th. Canaccord Genuity Group upped their price objective on Eton Pharmaceuticals from $60.00 to $68.00 and gave the company a "buy" rating in a research report on Friday, August 14th. Finally, Zacks Research upgraded Eton Pharmaceuticals from a "strong sell" rating to a "hold" rating in a research report on Monday, August 24th. Four equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the company's stock. According to data from MarketBeat, Eton Pharmaceuticals currently has a consensus rating of "Moderate Buy" and a consensus price target of $67.50.

Eton Pharmaceuticals Price Performance

The firm has a market capitalization of $1.53 billion, a P/E ratio of 139.24 and a beta of 0.90. The stock's 50 day simple moving average is $54.36 and its 200 day simple moving average is $38.34. The company has a debt-to-equity ratio of 0.41, a quick ratio of 1.30 and a current ratio of 1.52.

Eton Pharmaceuticals (NASDAQ:ETON - Get Free Report) last posted its quarterly earnings results on Thursday, August 13th. The company reported $0.43 earnings per share for the quarter, beating the consensus estimate of $0.19 by $0.24. The firm had revenue of $37.59 million during the quarter, compared to the consensus estimate of $27.11 million. Eton Pharmaceuticals had a net margin of 12.02% and a return on equity of 40.13%. As a group, analysts expect that Eton Pharmaceuticals, Inc. will post 1.13 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, Director Paul V. Maier sold 50,000 shares of the stock in a transaction on Friday, August 28th. The stock was sold at an average price of $59.07, for a total transaction of $2,953,500.00. Following the transaction, the director owned 59,745 shares of the company's stock, valued at approximately $3,529,137.15. This represents a 45.56% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, insider David Krempa sold 25,000 shares of the firm's stock in a transaction on Monday, August 24th. The shares were sold at an average price of $65.07, for a total value of $1,626,750.00. Following the transaction, the insider owned 37,025 shares in the company, valued at approximately $2,409,216.75. This represents a 40.31% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders own 16.49% of the company's stock.

Institutional Trading of Eton Pharmaceuticals

Hedge funds have recently added to or reduced their stakes in the business. Toth Financial Advisory Corp purchased a new position in Eton Pharmaceuticals during the 2nd quarter valued at about $43,000. Caitong International Asset Management Co. Ltd purchased a new stake in shares of Eton Pharmaceuticals in the 4th quarter worth approximately $50,000. Persistent Asset Partners Ltd bought a new position in shares of Eton Pharmaceuticals during the second quarter valued at approximately $90,000. State of Wyoming bought a new position in shares of Eton Pharmaceuticals during the second quarter valued at approximately $107,000. Finally, Quantbot Technologies LP purchased a new position in Eton Pharmaceuticals during the second quarter valued at approximately $165,000. 27.86% of the stock is owned by hedge funds and other institutional investors.

Eton Pharmaceuticals Company Profile

Eton Pharmaceuticals, Inc is a specialty pharmaceutical company focused on developing and commercializing treatments for underserved patient populations, with an emphasis on pediatric, rare disease and other difficult-to-treat conditions. The company generally pursues products with established clinical or regulatory pathways and works to bring them to market through its own commercial operations or strategic partnerships.

Eton's marketed portfolio includes Eprontia, an oral solution formulation of topiramate used in the treatment of certain seizure disorders; Biorphen, an injectable phenylephrine product used to treat clinically important low blood pressure; and Alkindi Sprinkle, a hydrocortisone granule product for replacement therapy in children with adrenal insufficiency.

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