The State Board of Administration of Florida Retirement System recently made headlines with its decision to significantly reduce its holdings in Heron Therapeutics, Inc. (NASDAQ:HRTX). According to a disclosure with the Securities and Exchange Commission (SEC), the firm sold 79.4% of its shares during the first quarter, resulting in ownership of just 40,705 shares at the end of the period. Based on the most recent SEC filing, these remaining shares are valued at $61,000.
Heron Therapeutics, a prominent biotechnology company, released its quarterly earnings data on August 14th. The report revealed that for the quarter, they recorded an earnings per share (EPS) of ($0.35). This number fell short of expectations as analysts had predicted an EPS of ($0.23). Additionally, their revenue for the quarter stood at $31.76 million—remarkably close to the consensus estimate of $31.75 million.
One notable point from Heron Therapeutics’ financials is their negative net margin and return on equity (ROE). They reported a negative net margin of 115.80% along with a staggering ROE figure exceeding -21,000%. These figures indicate significant challenges that need to be addressed by management in order to improve profitability and overall financial health.
Moreover, there has been activity within Heron Therapeutics’ insider trading as well. Director Adam Morgan recently purchased an impressive 2,486,744 shares of stock at an average price of $1.37 per share—an investment totaling roughly $3,406,839.28. With this purchase, Morgan now possesses 6,986,744 shares of Heron Therapeutics stock valued at $9,571,839.28. This transaction was duly documented and filed with the SEC for transparency and accessibility.
It is also worth mentioning that corporate insiders currently hold approximately 6.40% ownership in the company. While this may suggest confidence in Heron Therapeutics’ prospects, it is crucial to highlight the need for careful analysis and due diligence before making any investment decisions.
As we progress further into the year, analysts predict that Heron Therapeutics, Inc. will post an EPS of -1.09 for the current fiscal year. This projection underscores the ongoing challenges facing the company and emphasizes the importance of implementing effective strategies to drive growth and profitability moving forward.
In conclusion, the State Board of Administration of Florida Retirement System’s decision to reduce its holdings in Heron Therapeutics by 79.4% has drawn attention to ongoing concerns surrounding the biotechnology company’s financial performance. The lower-than-expected earnings per share combined with negative net margin and return on equity figures reflect significant obstacles to be addressed by management in order to enhance their overall financial standing. As insiders continue to trade shares within the company, investors should closely monitor these developments and exercise caution when considering investment opportunities in Heron Therapeutics, Inc.
Updated on: 07/12/2023
Debt to equity ratio: Buy
Price to earnings ratio: Strong Sell
Price to book ratio: Strong Buy
DCF: Strong Buy
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Institutional Investors Show Interest and Skepticism in Heron Therapeutics’ Stock as Analysts Hold Divergent Views
On September 25, 2023, there were notable changes in the stakes of Heron Therapeutics by institutional investors. Point72 Hong Kong Ltd entered the company as a new investor in the first quarter, acquiring a position valued at approximately $48,000. Another newcomer to the scene was Bridgefront Capital LLC, which purchased shares worth around $60,000 during the same period. Engineers Gate Manager LP also decided to invest in Heron Therapeutics with a position worth approximately $73,000. Additionally, Point72 Middle East FZE made a move in the fourth quarter by acquiring shares worth about $37,000. Lastly, Captrust Financial Advisors increased its stake by an astounding 1,539.5% during the second quarter and now owns 17,789 shares of Heron Therapeutics’ stock valued at $50,000 after purchasing an additional 16,704 shares.
It is interesting to note that these institutional investors and hedge funds collectively own 81.77% of Heron Therapeutics’ stock. This indicates a high level of confidence and interest in the biotechnology company’s future prospects.
Moving on to the stock’s performance on NASDAQ:HRTX on Friday, it opened at a price of $1.01. The market capitalization of Heron Therapeutics stands at $142.17 million with a negative price-to-earnings (PE) ratio of -0.86 and a beta of 0.98 indicating moderate volatility compared to the market as a whole. The company has a debt-to-equity ratio of 11.00 and maintains strong liquidity with current and quick ratios of 1.91 and 1.39 respectively.
In terms of its trading patterns over time, Heron Therapeutics has seen its fifty-day moving average price settle at around $1.50 while its two-hundred day moving average price stands at $1.68. This indicates some volatility in the stock’s price over the past months.
Furthermore, we see that Heron Therapeutics’ stock has experienced a range of prices in the last year. Its lowest point was at $0.99 while its highest reached $4.68, showcasing fluctuations within a significant margin.
Several brokerages have shared their views on Heron Therapeutics’ stock, including recent research reports from StockNews.com and Cantor Fitzgerald. StockNews.com downgraded the stock from a “hold” rating to a “sell” rating, while Cantor Fitzgerald reiterated an “overweight” rating on Heron Therapeutics’ shares. Another prominent analyst firm, Needham & Company LLC, reiterated a “buy” rating with a price target set at $5.00 for the biotechnology company’s stock.
In conclusion, it can be observed that institutional investors have shown both support and skepticism towards Heron Therapeutics’ stock in recent times. The company’s performance on NASDAQ:HRTX indicates volatility and varying opinions among analysts. Investors would benefit from closely monitoring any developments related to Heron Therapeutics as it navigates the evolving landscape of the biotechnology industry.