Olema Pharmaceuticals (NASDAQ:OLMA) Reaches New 1-Year Low - Time to Sell?

Key Points

• Olema Pharmaceuticals fell 8.7% to a new 52-week low, trading as low as $6.24 and closing near $6.41, well below its 50-day and 200-day moving averages.
• Despite the selloff, analysts maintain a “Moderate Buy” consensus with an average price target of $40.60; 11 analysts rate the stock Buy, one Hold, and one Sell, although several recently reduced their targets.
• The clinical-stage biotech missed its latest quarterly EPS estimate and is expected to post a full-year loss, while institutional investors own 91.78% of shares. Its lead candidate is palazestrant, an oral therapy being developed for advanced or metastatic ER-positive, HER2-negative breast cancer.

Olema Pharmaceuticals, Inc. (NASDAQ:OLMA - Get Free Report)'s share price hit a new 52-week low during trading on Saturday. The stock traded as low as $6.24 and last traded at $6.41, with a volume of 1,984,562 shares changing hands. The stock had previously closed at $7.02.

Wall Street Analyst Weigh In

Several analysts recently issued reports on the company. Stifel Nicolaus decreased their target price on Olema Pharmaceuticals from $48.00 to $30.00 and set a "buy" rating on the stock in a research note on Monday, September 14th. HC Wainwright cut their price objective on shares of Olema Pharmaceuticals from $38.00 to $36.00 and set a "buy" rating for the company in a report on Tuesday, August 11th. JPMorgan Chase & Co. lowered their target price on shares of Olema Pharmaceuticals from $52.00 to $46.00 and set an "overweight" rating on the stock in a report on Thursday, August 13th. Citigroup cut their target price on shares of Olema Pharmaceuticals to $59.00 and set a "buy" rating for the company in a research note on Tuesday, August 11th. Finally, Weiss Ratings raised shares of Olema Pharmaceuticals from a "sell (e+)" rating to a "sell (d-)" rating in a research note on Monday, September 21st. Eleven investment analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, Olema Pharmaceuticals has a consensus rating of "Moderate Buy" and a consensus target price of $40.60.

Olema Pharmaceuticals Trading Down 8.7%

The company's 50 day moving average price is $9.22 and its two-hundred day moving average price is $11.48. The firm has a market cap of $560.88 million, a PE ratio of -3.02 and a beta of 2.00. The company has a quick ratio of 8.86, a current ratio of 8.86 and a debt-to-equity ratio of 0.01.

Olema Pharmaceuticals (NASDAQ:OLMA - Get Free Report) last issued its quarterly earnings results on Monday, August 10th. The company reported ($0.61) EPS for the quarter, missing the consensus estimate of ($0.55) by ($0.06). As a group, sell-side analysts forecast that Olema Pharmaceuticals, Inc. will post -2.43 EPS for the current year.

Institutional Investors Weigh In On Olema Pharmaceuticals

Several large investors have recently added to or reduced their stakes in OLMA. Arizona State Retirement System increased its holdings in Olema Pharmaceuticals by 39.2% during the 2nd quarter. Arizona State Retirement System now owns 14,430 shares of the company's stock worth $181,000 after purchasing an additional 4,062 shares during the period. VIRGINIA RETIREMENT SYSTEMS ET Al purchased a new stake in shares of Olema Pharmaceuticals in the 2nd quarter worth approximately $220,000. Readystate Asset Management LP purchased a new stake in shares of Olema Pharmaceuticals in the 2nd quarter worth approximately $7,429,000. Susquehanna Fundamental Investments LLC bought a new position in shares of Olema Pharmaceuticals during the second quarter valued at approximately $690,000. Finally, UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC boosted its stake in shares of Olema Pharmaceuticals by 96.3% during the second quarter. UBS AM a distinct business unit of UBS ASSET MANAGEMENT AMERICAS LLC now owns 49,136 shares of the company's stock valued at $615,000 after purchasing an additional 24,111 shares in the last quarter. 91.78% of the stock is owned by hedge funds and other institutional investors.

About Olema Pharmaceuticals

Olema Pharmaceuticals, Inc is a clinical-stage biopharmaceutical company focused on developing targeted therapies for women's cancers, with an emphasis on hormone receptor-positive breast cancer. The company's research is centered on treatments designed to address cancer biology and resistance mechanisms that can limit the effectiveness of existing endocrine therapies.

Olema's lead product candidate is palazestrant, an oral selective estrogen receptor degrader (SERD) being developed for patients with estrogen receptor-positive, human epidermal growth factor receptor 2-negative advanced or metastatic breast cancer.

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