Stick With Chiasma Inc. (CHMA). The Bull Are Alive And Well


Adage Capital Management LP recently announced the acquisition of new stake in Chiasma Inc. (NASDAQ:CHMA). The institutional investor has increased its shareholding in the Healthcare company by 20.83% to 2.9 million shares with purchase of 0.5 million shares. This fresh investment now brings its stake to 6.86% valued currently at $15.6 million. In addition, Point72 Asset Management LP raised its holdings by 1.0 million to 2.5 million shares. And BlackRock Fund Advisors has lifted its position by 0.63% or 14677.0 shares – to 2.34 million shares.

With over 0.4 million Chiasma Inc. (CHMA) shares trading Friday and a closing price of $4.43 on the day, the dollar volume was approximately $1.77 million. The shares have shown a negative weekly performance of -9.13% and its price on 07/24/20 lost nearly -2.21%. Currently, there are 42.19M common shares owned by the public and among those 35.40M 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: 4 analysts who have offered their price forecasts for CHMA have a consensus price objective of $16.25. The analysts have set the share’s price value over the next 12 months at a high of $19.00 and a low of $11.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Chiasma Inc. stock is 2.00 for the next 12 months. But an upside of 76.68% will see the stock hit the forecast high price target while mean target price for the stock is $17.50.

Insiders at the company have transacted a total of 12 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 8 of these insider trades were purchases, accounting for 228,193 shares. Insider sales of the common stock occurred on 4 occasions, with total insider shares sold totaling 203,325 shares.

The top 3 mutual fund holders in Chiasma Inc. are Fidelity Select Port. – Biotechno, Vanguard Total Stock Market Index, and iShares Russell 2000 ETF. Fidelity Select Port. – Biotechno owns 1.63 million shares of the company’s stock, all valued at over $8.75 million. Vanguard Total Stock Market Index bought 32700.0 shares to see its total holdings expand to 1.11 million shares valued at over $5.98 million and representing 2.63% of the shares outstanding. iShares Russell 2000 ETF sold 19092.0 shares to bring its total holdings to over 0.75 million shares at a value of $4.04 million. iShares Russell 2000 ETF now owns shares totaling to 1.78% of the shares outstanding.

Shares of Chiasma Inc. (NASDAQ: CHMA) opened at $4.53, unchanged from a prior closing price of $4.53. However, the script later closed the day at $4.43, down -2.21%. The company’s stock has a 5-day price change of -9.13% and -3.49% over the past three months. CHMA shares are trading -10.69% year to date (YTD), with the 12-month market performance down to -21.73% lower. It has a 12-month low price of $2.88 and touched a high of $7.92 over the same period. Currently, 0.4 million shares have been traded, compared to an average intraday trading volume of 766.22K shares. The stock is trading above its simple moving averages at the SMA20, SMA50, and SMA200, as the current price level is off by -8.00%, -22.51%, and -11.70% respectively.

Institutional ownership of Chiasma Inc. (NASDAQ: CHMA) shares accounts for 63.90% of the company’s 42.19M shares outstanding. Mutual fund holders own 28.12%, while other institutional holders and individual stakeholders account for 36.92% and 18.96% respectively.

It has a market capitalization of $237.36M and a beta (3y monthly) value of 1.45. The earnings-per-share (ttm) stands at -$1.10. Price movements for the stock have been influenced by the stock’s volatility, which stands at 5.27% over the week and 9.93% over the month.

Analysts forecast that Chiasma Inc. (CHMA) will achieve an EPS of -$0.38 for the current quarter, -$0.38 for the next quarter and -$0.96 for 2021. The lowest estimate earnings-per-share for the quarter is -$0.44 while analysts give the company a high EPS estimate of -$0.29. Comparatively, EPS for the current quarter was -$0.25 a year ago. Earnings per share for the fiscal year are expected to increase by 17.10%, and 31.90% over the next financial year. EPS should grow at an annualized rate of 46.30% over the next five years, compared to -51.60% over the past 5-year period.

If you are looking to buy this stock, then you may note that the average analyst recommendation by 4 brokerage firm advisors rate Chiasma Inc. (CHMA) as a “Moderate Buy” at a consensus score of 2.00. Specifically, 4 Wall Street analysts polled rate the stock as a buy, while 0 of the 4 advise that investors “hold,” and 0 rated it as a “Sell.”

Looking at the support for the CHMA, a number of firms have released research notes about the stock. Piper Jaffray stated their Overweight rating for the stock in a research note on July 31, 2019, with the firm’s price target at $11. H.C. Wainwright coverage for the Chiasma Inc. (CHMA) stock in a research note released on February 14, 2019 offered a Buy rating with a price target of $11. Barclays was of a view on January 17, 2017 that the stock is Underweight, while Barclays gave the stock Equal Weight rating on April 25, 2016, issuing a price target of $40- $5.50. Barclays on their part issued Overweight rating on August 10, 2015.


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