Puma Biotechnology Inc. (NASDAQ: PBYI): Street Finally Waking Up


    The Vanguard Group, Inc. recently announced the acquisition of new stake in Puma Biotechnology Inc. (NASDAQ:PBYI). The institutional investor has increased its shareholding in the Healthcare company by 15.90% to 4.54 million shares with purchase of 0.62 million shares. This fresh investment now brings its stake to 11.54% valued currently at $46.39 million. In addition, SSgA Funds Management, Inc. raised its holdings by 32468.0 to 3.54 million shares. And Fred Alger Management LLC has lifted its position by 31.83% or 0.56 million shares – to 2.33 million shares.

    With over 1.27 million Puma Biotechnology Inc. (PBYI) shares trading Tuesday and a closing price of $10.81 on the day, the dollar volume was approximately $13.73 million. The shares have shown a positive weekly performance of 5.67% and its price on 07/07/20 gained nearly 0.93%. Currently, there are 39.29M common shares owned by the public and among those 33.99M shares have been available to trade.

    An analysis of what Wall Street brokers have to say about the expected price targets for this stock gives us this picture: 11 analysts who have offered their price forecasts for PBYI have a consensus price objective of $12.11. The analysts have set the share’s price value over the next 12 months at a high of $16.00 and a low of $6.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Puma Biotechnology Inc. stock is 3.30 for the next 12 months. The average price target is 10.73% above its last price level and an upside to the estimated low will see the stock lose -80.17% over that period. But an upside of 32.44% will see the stock hit the forecast high price target while mean target price for the stock is $13.00.

    Insiders at the company have transacted a total of 47 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 13 of these insider trades were purchases, accounting for 418,897 shares. Insider sales of the common stock occurred on 34 occasions, with total insider shares sold totaling 78,537 shares.

    The top 3 mutual fund holders in Puma Biotechnology Inc. are SPDR S&P Biotech ETF, Vanguard Explorer Fund, and Vanguard Total Stock Market Index. SPDR S&P Biotech ETF owns 2.86 million shares of the company’s stock, all valued at over $29.25 million. The company sold 34230.0 shares recently to bring their total holdings to about 7.28% of the shares outstanding. Vanguard Explorer Fund bought 0.21 million shares to see its total holdings expand to 1.02 million shares valued at over $10.37 million and representing 2.58% of the shares outstanding. Vanguard Total Stock Market Index sold 10600.0 shares to bring its total holdings to over 0.97 million shares at a value of $9.94 million. Vanguard Total Stock Market Index now owns shares totaling to 2.47% of the shares outstanding.

    Shares of Puma Biotechnology Inc. (NASDAQ: PBYI) opened at $10.60, down -$0.11 from a prior closing price of $10.71. However, the script later closed the day at $10.81, up 0.93%. The company’s stock has a 5-day price change of 5.67% and 40.57% over the past three months. PBYI shares are trading 23.54% year to date (YTD), with the 12-month market performance down to -9.16% lower. It has a 12-month low price of $5.50 and touched a high of $15.00 over the same period. Currently, 1.27 million shares have been traded, compared to an average intraday trading volume of 1.07 million shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by 2.84%, -0.91%, and 13.38% respectively.

    Institutional ownership of Puma Biotechnology Inc. (NASDAQ: PBYI) shares accounts for 95.70% of the company’s 39.29M shares outstanding. Mutual fund holders own 39.53%, while other institutional holders and individual stakeholders account for 55.02% and 24.08% respectively.

    It has a market capitalization of $430.35M and a beta (3y monthly) value of 1.22. The stock’s earnings-per-share (ttm) stands at -$2.12. The company has a Quick Ratio of 1.70 with the debt-to-equity ratio at 10.19. Price movements for the stock have been influenced by the stock’s volatility, which stands at 5.53% over the week and 7.74% over the month.

    Analysts forecast that Puma Biotechnology Inc. (PBYI) will achieve an EPS of -$0.31 for the current quarter, -$0.24 for the next quarter and -$0.59 for 2021. The lowest estimate earnings-per-share for the quarter is -$0.53 while analysts give the company a high EPS estimate of $0.16. Comparatively, EPS for the current quarter was -$0.97 a year ago. Earnings per share for the fiscal year are expected to increase by 34.90%, and 46.80% over the next financial year. EPS over the next five years should compared to 16.20% over the past 5-year period.

    If you are looking to buy this stock, then you may note that the average analyst recommendation by 11 brokerage firm advisors rate Puma Biotechnology Inc. (PBYI) as a “Hold” at a consensus score of 3.30. Specifically, 1 Wall Street analysts polled rate the stock as a buy, while 6 of the 11 advise that investors “hold,” and 3 rated it as a “Sell.”

    Looking at the support for the PBYI, a number of firms have released research notes about the stock. BofA/Merrill stated their Underperform rating for the stock in a research note on June 25, 2020, with the firm’s price target at $9. Goldman coverage for the Puma Biotechnology Inc. (PBYI) stock in a research note released on October 08, 2019 offered a Sell rating with a price target of $8. Citigroup was of a view on May 10, 2019 that the stock is Neutral, while Cantor Fitzgerald gave the stock Neutral rating on May 10, 2019, issuing a price target of $57- $20. Leerink Partners on their part issued Mkt Perform rating on January 17, 2019.


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