Phathom Pharmaceuticals (NASDAQ:PHAT) Shares Gap Up Following Better-Than-Expected Earnings

Key Points

• Phathom Pharmaceuticals beat earnings expectations: The company reported quarterly EPS of $0.04, outperforming the consensus estimate of a $0.11 loss, while revenue of $84.72 million was essentially in line with forecasts.
• Shares initially jumped but later traded lower: PHAT opened at $7.00 versus a prior close of $6.28, but last traded at $6.1770. The stock remains below its 50-day and 200-day moving averages.
• Analysts remain broadly bullish: The stock has a consensus “Moderate Buy” rating and an average price target of $20.11, despite several recent target reductions. Institutional investors and hedge funds own approximately 99% of the shares.

Shares of Phathom Pharmaceuticals, Inc. (NASDAQ:PHAT - Get Free Report) gapped up prior to trading on Thursday following a better than expected earnings announcement. The stock had previously closed at $6.28, but opened at $7.00. Phathom Pharmaceuticals shares last traded at $6.1770, with a volume of 236,158 shares changing hands.

The company reported $0.04 EPS for the quarter, topping the consensus estimate of ($0.11) by $0.15. The company had revenue of $84.72 million for the quarter, compared to the consensus estimate of $84.82 million.

Analysts Set New Price Targets

A number of research firms recently commented on PHAT. Barclays lowered their price target on shares of Phathom Pharmaceuticals from $18.00 to $14.00 and set an "overweight" rating on the stock in a research report on Friday, August 14th. Craig Hallum restated a "buy" rating and set a $15.00 target price on shares of Phathom Pharmaceuticals in a research report on Wednesday, October 21st. Jefferies Financial Group reaffirmed a "buy" rating and set a $16.00 target price on shares of Phathom Pharmaceuticals in a report on Wednesday, October 14th. Needham & Company LLC dropped their price target on shares of Phathom Pharmaceuticals from $28.00 to $22.00 and set a "buy" rating for the company in a research report on Thursday, July 30th. Finally, Guggenheim cut their price target on Phathom Pharmaceuticals from $25.00 to $22.00 and set a "buy" rating for the company in a research note on Friday, July 31st. One investment analyst has rated the stock with a Strong Buy rating, seven have issued a Buy rating, one has issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $20.11.

Institutional Inflows and Outflows

Institutional investors have recently added to or reduced their stakes in the company. Summit Securities Group LLC acquired a new stake in shares of Phathom Pharmaceuticals in the 1st quarter valued at approximately $34,000. State of Alaska Department of Revenue bought a new position in Phathom Pharmaceuticals in the 3rd quarter valued at approximately $25,000. Mirae Asset Global Investments Co. Ltd. bought a new position in Phathom Pharmaceuticals in the 3rd quarter valued at approximately $30,000. State of Wyoming acquired a new stake in Phathom Pharmaceuticals in the first quarter valued at approximately $55,000. Finally, Allworth Financial LP acquired a new stake in Phathom Pharmaceuticals in the second quarter valued at approximately $113,000. 99.01% of the stock is currently owned by institutional investors and hedge funds.

Phathom Pharmaceuticals Price Performance

The business's 50-day simple moving average is $7.76 and its two-hundred day simple moving average is $10.56. The stock has a market cap of $515.17 million, a price-to-earnings ratio of -4.97 and a beta of 0.50.

About Phathom Pharmaceuticals

Phathom Pharmaceuticals, Inc NASDAQ: PHAT is a biopharmaceutical company focused on developing and commercializing treatments for gastrointestinal diseases. The company's principal product is Voquezna (vonoprazan), a potassium-competitive acid blocker designed to suppress stomach acid through a mechanism distinct from traditional proton pump inhibitors.

In the United States, Voquezna is approved for the treatment of Helicobacter pylori infection in combination with antibiotics and for certain forms of gastroesophageal reflux disease (GERD), including erosive esophagitis and heartburn associated with non-erosive GERD.

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