Omeros (NASDAQ:OMER) Shares Gap Down - Should You Sell?

Key Points

• Omeros shares fell 13.8%, opening at $17.94 after previously closing at $18.79 and later trading near $16.00.
• Analyst sentiment remains generally positive, with three Buy ratings and two Holds producing a “Moderate Buy” consensus and an average price target of $30.33.
• The company exceeded quarterly expectations, reporting $0.02 in earnings per share versus a $0.27 loss estimate and $28.53 million in revenue versus a $12.69 million forecast; however, insiders sold 105,906 shares worth nearly $2 million over the prior 90 days.

Omeros Corporation (NASDAQ:OMER - Get Free Report) gapped down before the market opened on Friday. The stock had previously closed at $18.79, but opened at $17.94. Omeros shares last traded at $16.0010, with a volume of 695,394 shares traded.

Analyst Upgrades and Downgrades

A number of equities research analysts have commented on OMER shares. HC Wainwright reissued a "buy" rating on shares of Omeros in a report on Monday, July 27th. Weiss Ratings upgraded shares of Omeros from a "hold (c-)" rating to a "hold (c)" rating in a research report on Thursday, October 8th. Wall Street Zen raised shares of Omeros from a "hold" rating to a "buy" rating in a research note on Saturday, August 15th. Cantor Fitzgerald reiterated an "overweight" rating and set a $22.00 target price on shares of Omeros in a research report on Wednesday. Finally, Zacks Research lowered shares of Omeros from a "strong-buy" rating to a "hold" rating in a research report on Monday, July 13th. Three equities research analysts have rated the stock with a Buy rating and two have given a Hold rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $30.33.

Omeros Trading Down 13.8%

The company has a 50 day moving average price of $18.35 and a 200 day moving average price of $13.84. The company has a market capitalization of $1.17 billion, a price-to-earnings ratio of 12.64 and a beta of 2.57.

Omeros (NASDAQ:OMER - Get Free Report) last released its earnings results on Wednesday, August 12th. The biopharmaceutical company reported $0.02 earnings per share for the quarter, topping analysts' consensus estimates of ($0.27) by $0.29. The firm had revenue of $28.53 million for the quarter, compared to the consensus estimate of $12.69 million. Equities analysts predict that Omeros Corporation will post -0.37 earnings per share for the current year.

Insider Transactions at Omeros

In related news, Director Arnold Hanish sold 10,000 shares of Omeros stock in a transaction dated Thursday, August 27th. The stock was sold at an average price of $18.95, for a total value of $189,500.00. Following the completion of the sale, the director directly owned 5,000 shares in the company, valued at $94,750. This trade represents a 66.67% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CAO David Borges sold 10,000 shares of Omeros stock in a transaction dated Friday, August 21st. The stock was sold at an average price of $18.95, for a total value of $189,500.00. Following the completion of the sale, the chief accounting officer owned 5,906 shares of the company's stock, valued at approximately $111,918.70. The trade was a 62.87% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 105,906 shares of company stock worth $1,989,705 in the last ninety days. 10.50% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Hedge funds have recently modified their holdings of the business. International Assets Investment Management LLC raised its position in shares of Omeros by 16.0% during the first quarter. International Assets Investment Management LLC now owns 5,800 shares of the biopharmaceutical company's stock worth $61,000 after purchasing an additional 800 shares during the period. GK Wealth Management LLC bought a new position in shares of Omeros during the 3rd quarter valued at about $65,000. Assetmark Inc. bought a new position in shares of Omeros during the 1st quarter valued at about $38,000. Cambridge Investment Research Advisors Inc. grew its position in shares of Omeros by 4.3% in the 2nd quarter. Cambridge Investment Research Advisors Inc. now owns 92,403 shares of the biopharmaceutical company's stock valued at $879,000 after purchasing an additional 3,835 shares during the period. Finally, HighTower Advisors LLC grew its position in shares of Omeros by 4.3% in the 2nd quarter. HighTower Advisors LLC now owns 115,368 shares of the biopharmaceutical company's stock valued at $1,097,000 after purchasing an additional 4,738 shares during the period. Institutional investors own 48.79% of the company's stock.

Omeros Company Profile

Omeros Corporation NASDAQ: OMER is a biopharmaceutical company focused on discovering, developing and commercializing therapies for disorders involving the complement, immune and coagulation systems. The company has also developed a pipeline of investigational therapies aimed at treating serious diseases involving complement activation and immune-system dysfunction. The company is headquartered in Seattle, Washington, and was founded in 1994.

Its leading investigational programs have included narsoplimab, which targets the lectin pathway of the complement system, and OMS906, an antibody designed to inhibit MASP-3 and regulate the alternative pathway.

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