Puma Biotechnology (NASDAQ:PBYI) Sets New 12-Month High - Still a Buy?

Key Points

• Puma Biotechnology shares reached a new 52-week high of $9.73 and last traded at $9.70, above its 50-day moving average of $8.43 and 200-day average of $7.47.
• The company exceeded quarterly expectations, reporting EPS of $0.19 versus the $0.04 consensus and revenue of $56.5 million versus $53 million expected.
• Despite upgrades from some analysts, the consensus remains “Hold” with a $6.00 price target, well below the current share price; insiders sold roughly 132,000 shares over the past 90 days.

Shares of Puma Biotechnology, Inc. (NASDAQ:PBYI - Get Free Report) reached a new 52-week high on Wednesday . The company traded as high as $9.73 and last traded at $9.70, with a volume of 224766 shares changing hands. The stock had previously closed at $9.35.

Analyst Upgrades and Downgrades

A number of equities research analysts have issued reports on PBYI shares. TD Cowen boosted their price target on Puma Biotechnology from $5.00 to $6.00 and gave the company a "hold" rating in a research note on Friday, August 7th. Wall Street Zen raised shares of Puma Biotechnology from a "buy" rating to a "strong-buy" rating in a report on Saturday, August 15th. Finally, Weiss Ratings upgraded shares of Puma Biotechnology from a "hold (c)" rating to a "hold (c+)" rating in a research report on Friday, August 21st. Two equities research analysts have rated the stock with a Hold rating, According to MarketBeat, the company presently has an average rating of "Hold" and a consensus price target of $6.00.

Puma Biotechnology Price Performance

The company has a 50-day moving average of $8.43 and a two-hundred day moving average of $7.47. The company has a market capitalization of $500.20 million, a PE ratio of 18.63 and a beta of 1.24.

Puma Biotechnology (NASDAQ:PBYI - Get Free Report) last issued its quarterly earnings results on Thursday, August 6th. The biopharmaceutical company reported $0.19 EPS for the quarter, topping analysts' consensus estimates of $0.04 by $0.15. Puma Biotechnology had a return on equity of 20.76% and a net margin of 11.50%.The business had revenue of $56.50 million during the quarter, compared to analysts' expectations of $53.00 million. As a group, research analysts anticipate that Puma Biotechnology, Inc. will post 0.31 EPS for the current year.

Insider Activity at Puma Biotechnology

In other Puma Biotechnology news, insider Douglas M. Hunt sold 8,460 shares of Puma Biotechnology stock in a transaction that occurred on Monday, July 6th. The shares were sold at an average price of $8.26, for a total transaction of $69,879.60. Following the transaction, the insider owned 196,841 shares of the company's stock, valued at $1,625,906.66. The trade was a 4.12% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Jay M. Moyes sold 22,000 shares of Puma Biotechnology stock in a transaction on Friday, June 12th. The shares were sold at an average price of $7.22, for a total transaction of $158,840.00. Following the transaction, the director owned 58,322 shares in the company, valued at approximately $421,084.84. This trade represents a 27.39% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 132,028 shares of company stock worth $1,006,711 in the last 90 days. Insiders own 22.20% of the company's stock.

Institutional Trading of Puma Biotechnology

Several hedge funds have recently modified their holdings of PBYI. Ritholtz Wealth Management grew its holdings in Puma Biotechnology by 11.6% during the 1st quarter. Ritholtz Wealth Management now owns 774,308 shares of the biopharmaceutical company's stock valued at $4,948,000 after purchasing an additional 80,307 shares during the last quarter. Globeflex Capital L P bought a new stake in Puma Biotechnology in the second quarter worth about $3,105,000. BlackRock Inc. purchased a new position in shares of Puma Biotechnology during the second quarter valued at approximately $30,856,000. Connor Clark & Lunn Investment Management Ltd. purchased a new position in shares of Puma Biotechnology during the second quarter valued at approximately $5,214,000. Finally, Vise Technologies Inc. bought a new position in shares of Puma Biotechnology during the second quarter valued at approximately $584,000. 61.29% of the stock is owned by hedge funds and other institutional investors.

Puma Biotechnology Company Profile

Puma Biotechnology, Inc is a late‐stage biopharmaceutical company dedicated to the development and commercialization of targeted therapies for oncology patients. Founded in 2010 and headquartered in Los Angeles, California, the company focuses on advancing molecularly defined cancer treatments that address significant unmet medical needs.

The company's lead product is neratinib, marketed under the brand name Nerlynx in the United States. Neratinib is an irreversible small‐molecule tyrosine kinase inhibitor designed to target the HER2 receptor, and it received FDA approval in 2017 for extended adjuvant treatment of early‐stage HER2-positive breast cancer.

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