Phathom Pharmaceuticals (NASDAQ:PHAT) Trading Down 5.3% - Should You Sell?

Key Points

• Phathom Pharmaceuticals shares fell 5.3% to $8.93 in mid-day trading, with volume down 89% from the stock’s average daily level.
• Analyst sentiment remains broadly positive, with a consensus “Moderate Buy” rating and an average price target of $21.25, although several firms recently lowered their targets.
• Institutional investors own 99.01% of PHAT, with major holders including Millennium Management, BlackRock, Invesco, Carlyle Group and Vanguard. The company is focused on gastrointestinal treatments, led by its vonoprazan therapy.

Phathom Pharmaceuticals, Inc. (NASDAQ:PHAT - Get Free Report) shares traded down 5.3% during mid-day trading on Wednesday . The stock traded as low as $8.96 and last traded at $8.93. 136,521 shares traded hands during trading, a decline of 89% from the average daily volume of 1,225,327 shares. The stock had previously closed at $9.43.

Wall Street Analysts Forecast Growth

A number of research firms recently commented on PHAT. Leerink Partners began coverage on Phathom Pharmaceuticals in a research note on Wednesday. They issued a "market perform" rating and a $10.00 price target for the company. Guggenheim decreased their target price on shares of Phathom Pharmaceuticals from $25.00 to $22.00 and set a "buy" rating on the stock in a report on Friday, July 31st. HC Wainwright restated a "buy" rating and issued a $26.00 target price on shares of Phathom Pharmaceuticals in a research report on Friday, July 31st. Needham & Company LLC cut their price target on shares of Phathom Pharmaceuticals from $28.00 to $22.00 and set a "buy" rating for the company in a report on Thursday, July 30th. Finally, Craig Hallum reissued a "buy" rating and issued a $20.00 price objective on shares of Phathom Pharmaceuticals in a research note on Friday, July 31st. One equities research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $21.25.

Phathom Pharmaceuticals Trading Down 7.0%

The company has a market capitalization of $709.74 million, a price-to-earnings ratio of -6.86 and a beta of 0.51. The business's 50 day moving average price is $10.00 and its two-hundred day moving average price is $10.84.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of PHAT. Millennium Management LLC grew its position in Phathom Pharmaceuticals by 125.8% during the 3rd quarter. Millennium Management LLC now owns 5,081,451 shares of the company's stock worth $59,809,000 after acquiring an additional 2,830,954 shares during the last quarter. BlackRock Inc. bought a new stake in shares of Phathom Pharmaceuticals during the second quarter worth about $49,098,000. Invesco Ltd. grew its holdings in shares of Phathom Pharmaceuticals by 13.4% during the second quarter. Invesco Ltd. now owns 4,140,072 shares of the company's stock worth $39,703,000 after purchasing an additional 489,260 shares during the last quarter. Carlyle Group Inc. acquired a new position in shares of Phathom Pharmaceuticals in the second quarter valued at approximately $37,940,000. Finally, Vanguard Group Inc. raised its holdings in Phathom Pharmaceuticals by 15.4% in the 3rd quarter. Vanguard Group Inc. now owns 3,215,572 shares of the company's stock valued at $37,847,000 after buying an additional 428,261 shares during the last quarter. 99.01% of the stock is currently owned by institutional investors.

Phathom Pharmaceuticals Company Profile

Phathom Pharmaceuticals is a clinical‐stage biopharmaceutical company focused on developing and commercializing novel treatments for gastrointestinal (GI) diseases. The company's core mission centers on addressing serious GI disorders by leveraging innovative mechanisms of action to improve patient outcomes. Phathom's research and development efforts concentrate on conditions such as Helicobacter pylori infection, erosive esophagitis, gastroparesis and other functional GI disorders where significant unmet medical needs persist.

The company's lead asset is vonoprazan, a potassium‐competitive acid blocker (P-CAB) licensed for use in the United States.

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