Wall Street Zen Downgrades Collegium Pharmaceutical (NASDAQ:COLL) to Buy

Key Points

• Collegium Pharmaceutical's rating was downgraded by Wall Street Zen from a "strong-buy" to a "buy," while other analysts have varied ratings, contributing to a consensus rating of "buy" and a price target of $42.33.
• The company announced a share repurchase plan allowing it to buy back $150 million worth of shares, indicating that the board believes its stock may be undervalued.
• Collegium Pharmaceutical reported a quarterly earnings result of $1.26 EPS and a revenue of $135.55 million, along with a net margin of 5.13% and a return on equity of 97.28%.

Collegium Pharmaceutical (NASDAQ:COLL - Get Free Report) was downgraded by research analysts at Wall Street Zen from a "strong-buy" rating to a "buy" rating in a report released on Saturday.

A number of other equities research analysts have also recently commented on the stock. Zacks Research raised shares of Collegium Pharmaceutical from a "hold" rating to a "strong-buy" rating in a report on Wednesday, September 24th. HC Wainwright raised shares of Collegium Pharmaceutical to a "strong-buy" rating and set a $44.00 price target on the stock in a report on Monday, August 11th. Finally, Weiss Ratings reissued a "hold (c)" rating on shares of Collegium Pharmaceutical in a report on Wednesday, October 8th. Two investment analysts have rated the stock with a Strong Buy rating, one has issued a Buy rating and two have assigned a Hold rating to the company's stock. According to MarketBeat.com, Collegium Pharmaceutical has a consensus rating of "Buy" and a consensus price target of $42.33.

Collegium Pharmaceutical Trading Up 2.2%

NASDAQ:COLL opened at $33.94 on Friday. The company has a current ratio of 1.18, a quick ratio of 1.10 and a debt-to-equity ratio of 3.27. The stock has a market capitalization of $1.07 billion, a PE ratio of 32.63 and a beta of 0.65. The firm's 50 day moving average is $36.28 and its 200 day moving average is $31.75. Collegium Pharmaceutical has a 12 month low of $23.23 and a 12 month high of $39.95.

Collegium Pharmaceutical (NASDAQ:COLL - Get Free Report) last posted its quarterly earnings results on Wednesday, September 4th. The specialty pharmaceutical company reported $1.26 EPS for the quarter. The company had revenue of $135.55 million for the quarter. Collegium Pharmaceutical had a net margin of 5.13% and a return on equity of 97.28%. Sell-side analysts expect that Collegium Pharmaceutical will post 5.62 earnings per share for the current year.

Collegium Pharmaceutical announced that its Board of Directors has initiated a share repurchase plan on Monday, July 7th that allows the company to buyback $150.00 million in outstanding shares. This buyback authorization allows the specialty pharmaceutical company to reacquire up to 15.4% of its shares through open market purchases. Shares buyback plans are often a sign that the company's board of directors believes its stock is undervalued.

Insider Activity

In other news, Director Gino Santini sold 5,405 shares of the business's stock in a transaction on Friday, August 15th. The shares were sold at an average price of $37.19, for a total transaction of $201,011.95. Following the completion of the transaction, the director directly owned 95,042 shares in the company, valued at $3,534,611.98. The trade was a 5.38% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, Director John Gordon Freund sold 11,659 shares of the business's stock in a transaction on Friday, August 8th. The shares were sold at an average price of $34.36, for a total transaction of $400,603.24. Following the transaction, the director owned 23,129 shares of the company's stock, valued at $794,712.44. This trade represents a 33.51% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 55,792 shares of company stock valued at $2,084,207 over the last 90 days. Company insiders own 2.51% of the company's stock.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the company. CWM LLC grew its position in shares of Collegium Pharmaceutical by 453.9% during the 2nd quarter. CWM LLC now owns 1,407 shares of the specialty pharmaceutical company's stock valued at $42,000 after purchasing an additional 1,153 shares in the last quarter. Wealthquest Corp purchased a new position in shares of Collegium Pharmaceutical during the 1st quarter valued at $62,000. EverSource Wealth Advisors LLC grew its position in Collegium Pharmaceutical by 744.9% in the second quarter. EverSource Wealth Advisors LLC now owns 2,484 shares of the specialty pharmaceutical company's stock worth $73,000 after acquiring an additional 2,190 shares in the last quarter. GAMMA Investing LLC increased its stake in Collegium Pharmaceutical by 368.9% in the second quarter. GAMMA Investing LLC now owns 2,757 shares of the specialty pharmaceutical company's stock valued at $82,000 after acquiring an additional 2,169 shares during the last quarter. Finally, NewEdge Advisors LLC raised its position in Collegium Pharmaceutical by 304.6% during the second quarter. NewEdge Advisors LLC now owns 3,047 shares of the specialty pharmaceutical company's stock valued at $90,000 after purchasing an additional 2,294 shares in the last quarter.

Collegium Pharmaceutical Company Profile

Collegium Pharmaceutical, Inc, a specialty pharmaceutical company, engages in the development and commercialization of medicines for pain management. Its portfolio includes Xtampza ER, an abuse-deterrent, extended-release, and oral formulation of oxycodone for the management of pain severe enough to require daily, around-the-clock, long-term opioid treatment; Nucynta ER and Nucynta IR, which are extended-release and immediate-release formulations of tapentadol, indicated for the management of acute, severe, and persistent pain; Belbuca, a buccal film that contains buprenorphine; and Symproic, an oral formulation of naldemedine for the treatment of opioid-induced constipation in adult patients with chronic non-cancer pain.

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