ObsEva SA (NASDAQ: OBSV): Stock That Needs Special Handling

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Rock Springs Capital Management L. recently announced the acquisition of new stake in ObsEva SA (NASDAQ:OBSV). The institutional investor has increased its shareholding in the Healthcare company by 77.33% to 1.4 million shares with purchase of 0.61 million shares. This fresh investment now brings its stake to 2.70% valued currently at $8.25 million. In addition, Fidelity Management & Research Co. raised its holdings by 0.69 million to 1.36 million shares. And Point72 Asset Management LP has lifted its position by 10.60% or 47700.0 shares – to 0.5 million shares.

With over 0.86 million ObsEva SA (OBSV) shares trading Tuesday and a closing price of $2.67 on the day, the dollar volume was approximately $2.31 million. The shares have shown a negative weekly performance of -7.93% and its price on 07/21/20 lost nearly -2.55%. Currently, there are 45.73M common shares owned by the public and among those 29.70M 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: 8 analysts who have offered their price forecasts for OBSV have a consensus price objective of $13.38. The analysts have set the share’s price value over the next 12 months at a high of $36.00 and a low of $4.00 should the stock experience a downside. Incidentally, analysts’ outlook for the ObsEva SA stock is 1.90 for the next 12 months. But an upside of 92.58% will see the stock hit the forecast high price target while mean target price for the stock is $8.00.

The top 3 mutual fund holders in ObsEva SA are Fidelity Select Port. – Biotechno, Pictet – Biotech, and LSP Life Sciences Fund NV. Fidelity Select Port. – Biotechno owns 1.36 million shares of the company’s stock, all valued at over $7.98 million. Pictet – Biotech sold 16271.0 shares to see its total holdings shrink to 0.44 million shares valued at over $2.59 million and representing 0.85% of the shares outstanding. LSP Life Sciences Fund NV bought 6071.0 shares to bring its total holdings to over 0.32 million shares at a value of $1.86 million. LSP Life Sciences Fund NV now owns shares totaling to 0.61% of the shares outstanding.

Shares of ObsEva SA (NASDAQ: OBSV) opened at $2.75, up $0.01 from a prior closing price of $2.74. However, the script later closed the day at $2.67, down -2.55%. The company’s stock has a 5-day price change of -7.93% and 24.77% over the past three months. OBSV shares are trading -30.10% year to date (YTD), with the 12-month market performance down to -73.43% lower. It has a 12-month low price of $1.63 and touched a high of $11.08 over the same period. Currently, 0.86 million shares have been traded, compared to an average intraday trading volume of 1.12 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 -36.28%, -39.54%, and -33.12% respectively.

Institutional ownership of ObsEva SA (NASDAQ: OBSV) shares accounts for 50.20% of the company’s 45.73M shares outstanding. Mutual fund holders own 13.28%, while other institutional holders and individual stakeholders account for 7.80% and — respectively.

It has a market capitalization of $140.42M and a beta (3y monthly) value of 0.93. The earnings-per-share (ttm) stands at -$2.38. Price movements for the stock have been influenced by the stock’s volatility, which stands at 6.66% over the week and 9.97% over the month.

Analysts forecast that ObsEva SA (OBSV) will achieve an EPS of -$0.42 for the current quarter, -$0.37 for the next quarter and -$1.3 for 2021. The lowest estimate earnings-per-share for the quarter is -$0.54 while analysts give the company a high EPS estimate of -$0.36. Comparatively, EPS for the current quarter was -$0.8 a year ago. Earnings per share for the fiscal year are expected to decrease by -30.40%, and 19.30% over the next financial year.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 8 brokerage firm advisors rate ObsEva SA (OBSV) as a “Strong Buy” at a consensus score of 1.90. Specifically, 5 Wall Street analysts polled rate the stock as a buy, while 3 of the 8 advise that investors “hold,” and 0 rated it as a “Sell.”

Looking at the support for the OBSV, a number of firms have released research notes about the stock. JP Morgan stated their Neutral rating for the stock in a research note on July 07, 2020, with the firm’s price target at $18-$5. BMO Capital Markets coverage for the ObsEva SA (OBSV) stock in a research note released on July 07, 2020 offered a Market Perform rating with a price target of $4. Credit Suisse was of a view on November 08, 2019 that the stock is Neutral, while JP Morgan gave the stock Overweight rating on September 13, 2018, issuing a price target of $29. Leerink Partners on their part issued Outperform rating on August 15, 2018.

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