Eton Pharmaceuticals (NASDAQ:ETON) Stock Price Up 5.9% - Should You Buy?

Key Points

• Eton Pharmaceuticals shares rose 5.9% to about $58.89, while trading volume was slightly below average. The stock’s market capitalization is approximately $1.68 billion, with a notably high P/E ratio of 154.75.
• Analyst sentiment is favorable: four analysts rate the stock Buy and two rate it Hold, producing a consensus “Moderate Buy” rating and an average price target of $67.50.
• The company beat quarterly expectations, reporting $0.43 EPS versus $0.19 expected and revenue of $37.59 million versus $27.11 million expected. However, two insiders recently sold shares, reducing their individual holdings by roughly 40% and 46%.

Eton Pharmaceuticals, Inc. (NASDAQ:ETON - Get Free Report)'s share price rose 5.9% during mid-day trading on Thursday . The stock traded as high as $59.10 and last traded at $58.8930. Approximately 396,284 shares were traded during trading, a decline of 8% from the average daily volume of 430,245 shares. The stock had previously closed at $55.61.

Analyst Upgrades and Downgrades

Several equities analysts have commented on the stock. B. Riley Financial reissued a "buy" rating and set a $70.00 target price (up from $40.00) on shares of Eton Pharmaceuticals in a research report on Friday, August 14th. Craig Hallum upped their price objective on shares of Eton Pharmaceuticals from $40.00 to $62.00 and gave the stock a "buy" rating in a report on Tuesday, July 28th. HC Wainwright increased their target price on Eton Pharmaceuticals from $65.00 to $70.00 and gave the company a "buy" rating in a research note on Friday, August 14th. Canaccord Genuity Group raised their price objective on shares of Eton Pharmaceuticals from $60.00 to $68.00 and gave the stock a "buy" rating in a research note on Friday, August 14th. Finally, Wall Street Zen upgraded shares of Eton Pharmaceuticals from a "buy" rating to a "strong-buy" rating in a research note on Saturday, June 13th. Four analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $67.50.

Eton Pharmaceuticals Trading Up 5.9%

The stock has a market cap of $1.68 billion, a P/E ratio of 154.75 and a beta of 0.90. The company has a current ratio of 1.52, a quick ratio of 1.30 and a debt-to-equity ratio of 0.41. The business's fifty day simple moving average is $52.92 and its 200 day simple moving average is $37.17.

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 (EPS) for the quarter, beating the consensus estimate of $0.19 by $0.24. The business had revenue of $37.59 million for the quarter, compared to analysts' expectations of $27.11 million. Eton Pharmaceuticals had a return on equity of 40.13% and a net margin of 12.02%. As a group, analysts expect that Eton Pharmaceuticals, Inc. will post 1.13 EPS for the current year.

Insider Activity

In related news, insider David Krempa sold 25,000 shares of the stock in a transaction dated 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 completion of the transaction, the insider directly owned 37,025 shares in the company, valued at approximately $2,409,216.75. This trade represents a 40.31% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Paul V. Maier sold 50,000 shares of Eton Pharmaceuticals stock in a transaction that occurred on Friday, August 28th. The shares were sold at an average price of $59.07, for a total transaction of $2,953,500.00. Following the completion of the sale, the director owned 59,745 shares in the company, valued at $3,529,137.15. This trade represents a 45.56% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders own 16.49% of the company's stock.

Institutional Investors Weigh In On Eton Pharmaceuticals

Several large investors have recently made changes to their positions in the stock. BlackRock Inc. acquired a new position in shares of Eton Pharmaceuticals during the 2nd quarter worth approximately $68,629,000. EcoR1 Capital LLC boosted its position in Eton Pharmaceuticals by 7.0% during the first quarter. EcoR1 Capital LLC now owns 2,171,938 shares of the company's stock worth $53,603,000 after purchasing an additional 141,394 shares during the period. Nantahala Capital Management LLC acquired a new position in shares of Eton Pharmaceuticals in the second quarter valued at $42,569,426. Pillsbury Lake Capital LLC acquired a new position in shares of Eton Pharmaceuticals in the second quarter valued at $14,015,083. Finally, Panoramic Capital LLC bought a new position in shares of Eton Pharmaceuticals in the second quarter valued at about $7,537,000. Institutional investors and hedge funds own 27.86% of the company's stock.

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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