Kadmon Holdings Inc. (KDMN) Volatility Spurs A Quest For Clarity

    SBUX Stock
    SBUX Stock

    Consonance Capital Management LP recently announced the acquisition of new stake in Kadmon Holdings Inc. (NYSE:KDMN). The institutional investor has increased its shareholding in the Healthcare company by 0.65% to 15.71 million shares with purchase of 0.1 million shares. This fresh investment now brings its stake to 9.82% valued currently at $57.5 million. In addition, BlackRock Fund Advisors raised its holdings by 0.23 million to 9.95 million shares. And SSgA Funds Management, Inc. has lifted its position by 94.10% or 3.51 million shares – to 7.25 million shares.

    With over 2.67 million Kadmon Holdings Inc. (KDMN) shares trading Tuesday and a closing price of $4.58 on the day, the dollar volume was approximately $12.21 million. The shares have shown a negative weekly performance of -1.93% and its price on 09/01/20 lost nearly -8.40%. Currently, there are 162.42M common shares owned by the public and among those 155.18M 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: 5 analysts who have offered their price forecasts for KDMN have a consensus price objective of $12.80. The analysts have set the share’s price value over the next 12 months at a high of $25.00 and a low of $8.00 should the stock experience a downside. Incidentally, analysts’ outlook for the Kadmon Holdings Inc. stock is 1.60 for the next 12 months. But an upside of 81.68% will see the stock hit the forecast high price target while mean target price for the stock is $10.00.

    Insiders at the company have transacted a total of 5 times over the past 12 months, according to data filed with the U.S. Securities and Exchange Commission (SEC). 5 of these insider trades were purchases, accounting for 1,530,188 shares. Insider sales of the common stock occurred on 0 occasions, with total insider shares sold totaling 0 shares.

    The top 3 mutual fund holders in Kadmon Holdings Inc. are SPDR S&P Biotech ETF, Vanguard Total Stock Market Index, and iShares Russell 2000 ETF. SPDR S&P Biotech ETF owns 4.5 million shares of the company’s stock, all valued at over $16.48 million. The company sold 45108.0 shares recently to bring their total holdings to about 2.81% of the shares outstanding. Vanguard Total Stock Market Index sold 2602.0 shares to see its total holdings shrink to 4.42 million shares valued at over $16.16 million and representing 2.76% of the shares outstanding. iShares Russell 2000 ETF sold -0.16 million shares to bring its total holdings to over 3.33 million shares at a value of $12.17 million. iShares Russell 2000 ETF now owns shares totaling to 2.08% of the shares outstanding.

    Shares of Kadmon Holdings Inc. (NYSE: KDMN) opened at $4.95, down -$0.05 from a prior closing price of $5.00. However, the script later closed the day at $4.58, down -8.40%. The company’s stock has a 5-day price change of -1.93% and 6.26% over the past three months. KDMN shares are trading 1.10% year to date (YTD), with the 12-month market performance up to 86.18% higher. It has a 12-month low price of $2.07 and touched a high of $5.50 over the same period. Currently, 2.67 million shares have been traded, compared to an average intraday trading volume of 2.45 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 6.59%, 5.64%, and 4.97% respectively.

    Institutional ownership of Kadmon Holdings Inc. (NYSE: KDMN) shares accounts for 94.00% of the company’s 162.42M shares outstanding. Mutual fund holders own 22.01%, while other institutional holders and individual stakeholders account for 74.63% and 21.35% respectively.

    It has a market capitalization of $768.89M and a beta (3y monthly) value of 1.40. The earnings-per-share (ttm) stands at -$0.94. Price movements for the stock have been influenced by the stock’s volatility, which stands at 6.26% over the week and 6.14% over the month.

    Analysts forecast that Kadmon Holdings Inc. (KDMN) will achieve an EPS of -$0.16 for the current quarter, -$0.16 for the next quarter and -$0.32 for 2021. The lowest estimate earnings-per-share for the quarter is -$0.17 while analysts give the company a high EPS estimate of -$0.15. Comparatively, EPS for the current quarter was -$0.49 a year ago. Earnings per share for the fiscal year are expected to increase by 17.70%, and 52.90% over the next financial year.

    If you are looking to buy this stock, then you may note that the average analyst recommendation by 5 brokerage firm advisors rate Kadmon Holdings Inc. (KDMN) as a “Strong Buy” at a consensus score of 1.60. Specifically, 4 Wall Street analysts polled rate the stock as a buy, while 0 of the 5 advise that investors “hold,” and 0 rated it as a “Sell.”

    Looking at the support for the KDMN, a number of firms have released research notes about the stock. Raymond James stated their Outperform rating for the stock in a research note on May 19, 2020, with the firm’s price target at $7. Nomura coverage for the Kadmon Holdings Inc. (KDMN) stock in a research note released on January 10, 2020 offered a Buy rating with a price target of $10. Citigroup was of a view on February 26, 2019 that the stock is Buy, while WBB Securities gave the stock Hold rating on October 17, 2018, issuing a price target of $2.90. WBB Securities on their part issued Hold rating on March 16, 2017.


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