Better Times Ahead For DURECT Corporation (NASDAQ: DRRX)?


    BlackRock Fund Advisors has recently announced that it has increased stake in DURECT Corporation (NASDAQ:DRRX) by 256.76%. After grabbing 12.12 million shares, the institutional investor is now in possession of 8.72 million shares of the Healthcare Company. The new investment brought the stake of investor firm to 6.18% having worth around $23.75 million. Moreover, The Vanguard Group, Inc. increased its share by 0.56 million to have a control over 9.42 million shares. And Renaissance Technologies LLC raised its holdings to 0.78 million shares by acquiring 5.99 million shares or 3.06% of the stake.

    DURECT Corporation (DRRX) concluded trading on 08/26/20 at a closing price of $1.99, with 1.04 million shares of worth about $2.07 million changed hands on the day. Weekly performance of the stock remained negative as price took a plunge of -13.48% during that period and on Wednesday the price saw a gain of about 1.53%. Currently the company’s common shares owned by public are about 196.87M shares, out of which, 178.62M shares are available for trading.

    A deeper look into what the analysts at Wall Street are thinking about the price target of this stock provides us with the following: 4 analysts are covering the DRRX stock and their offered price forecasts bring an average price target of $5.75. Over the next 12 months, analysts forecasted that the stock’s price could jump as high as $7.00 and could fall to a lowest price of $5.00. Analysts also issued an outlook of 1.70 for the DURECT Corporation stock for next 12 months. However, touching the estimated high of $7.00 would mean a gain of 71.57% for the stock.

    According to filings with the U.S. Securities and Exchange Commission (SEC), insiders took part in trade of the company’s stock for 8 times over the past 12 months. They bought 285,318 shares in 5 of the transactions. In 3 selling transactions, insiders dumped 97,208 shares.

    Vanguard Total Stock Market Index, iShares Russell 2000 ETF, and Vanguard Extended Market Index Fu are the top 3 mutual funds which are holding stakes in DURECT Corporation Vanguard Total Stock Market Index is currently holding 5.64 million shares of worth totaling $11.05 million. The company recently came selling 63426.0 shares which brought its stake up to 2.88% of the company’s outstanding shares. iShares Russell 2000 ETF sold -0.19 million shares, after which its hold over company’s outstanding shares shrunk to 2.08%, leaving 4.08 million shares with the mutual fund that have a worth of about $7.99 million. Vanguard Extended Market Index Fu, after selling 2.87 million shares, have now control over 1.46% of the stake in the company. It holds 6628.0 shares of worth $5.62 million.

    DURECT Corporation (NASDAQ: DRRX) started trading at $1.97, above $0.01 from concluding price of the previous day. However, the stock finished the trading on the day at a closing price of $1.99, or with a gain of 1.53%. Stock saw a price change of -13.48% in past 5 days and over the past one month there was a price change of 0.51%. Year-to-date (YTD), DRRX shares are showing a performance of -47.63% which increased to 21.34% when we look at its performance for past 12 months. Over the period of past 52 weeks, stock dropped to lowest price of $0.95 but also hit the highest price of $3.95 during that period. While comparing its average daily trading volume of 1.80 million shares, we see that about 1.04 million changed hands on the day. The stock is currently trading -10.08% below its 20-day simple moving average (SMA20), while that difference is down -10.55% for SMA50 and it goes to -5.63% lower than SMA200.

    BlackRock Fund Advisors acquired 12.12 million shares of DURECT Corporation having value of about $23.75 million. Data submitted at the U.S SEC by BlackRock Fund Advisors revealed that the firm now holds 8.72 million shares in the company valued at close to $17356294.44, or have control over 256.76% stake in the company. DURECT Corporation (NASDAQ: DRRX) currently have 196.87M outstanding shares and institutions hold larger chunk of about 57.50% of that. Holding of mutual funds in the company is about 32.32% while other institutional holders and individual stake holders have control over 47.11% and 11.14% of the stake respectively.

    The stock has a current market capitalization of $426.16M and its 3Y-monthly beta is at 2.05. It has posted earnings per share of -$0.01 in the same period. It has Quick Ratio of 5.50 while making debt-to-equity ratio of 0.00. Volatility of a stock is a metric used to know how much the price of that stock is under influence and for DRRX, volatility over the week remained 7.04% while standing at 6.73% over the month.

    Analysts are in expectations that DURECT Corporation (DRRX) stock would likely to be making an EPS of -$0.04 in the current quarter, while forecast for next quarter ESPS is -$0.04 and it is -$0.21 for next year. For the current quarter EPS, analysts have given the company a lowest target -$0.05 which is -$0.04 at the higher side of the target for the same. When we compare those targets with actual EPS, we find that company posted an EPS of -$0.01 in the same quarter a year ago. Stock’s fiscal year EPS is expected to rise by 27.00% while it is estimated to decrease by -250.00% in next year. EPS is likely to grow at an annualized rate of 15.00% for next 5-years, compared to annual growth of 10.20% made by the stock over the past 5-years.

    Analysts at 4 brokerage firms have issued recommendations for the DURECT Corporation (DRRX)’s stock and average of those rates the stock at a “Strong Buy” and assign it a score of 1.70. Out of those 4 Wall Street analysts, 4 recommended a “Buy” rating, while 0 were in favor recommending the stock as a “Hold” and 0 analyst recommended the stock as “Sell”.

    Digging deeper we find that several firms have released their research notes about the support levels of the stock. Most recent of them is a note released by Oppenheimer on July 31, 2020 offering an Outperform rating for the stock and assigned a target price of $7 to it. Coverage by B. Riley FBR stated DURECT Corporation (DRRX) stock as a Buy in their note to investors on January 31, 2020, suggesting a price target of $5 for the stock. On November 18, 2019, Cantor Fitzgerald Resumed their recommendations, while on September 06, 2019, Cantor Fitzgerald Initiated their ratings for the stock with a price target of $5. Stock get a Buy rating from H.C. Wainwright on March 06, 2018.


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