Catalyst Pharmaceuticals, Inc. (CPRX): Wait for the Reason and Miss the Opportunity

It has been reported that multiple insider activity took place at Catalyst Pharmaceuticals, Inc. (CPRX). Director DENKHAUS DONALD A acquired 25,000 shares for $225,000 in transaction occurred on 2018/12/27. After making this transaction, Director owns a direct stake of 182 shares, worth $1,212,750, as per the last closing price. On 2018/12/19 MCENANY PATRICK J, President and CEO at CPRX, purchased 20,000 shares at an average price of $2.24 per share. The new stake is valued at $25,536,165.

Director, O’Keeffe Charles B had invested in 20,000 shares for $543,376 through a trade on 2018/12/14. Following this activity, the insider holds 116 shares worth $2,928,797 as of recent close.

Vanguard Total Stock Market Index Fund revealed as top hedge fund owner in Catalyst Pharmaceuticals, Inc. (CPRX) with a stake of over 2.42M CPRX shares as of September 29, with a market value of approx. $9.16M as of today. The second largest holder, iShares Russell 2000 ETF, with 2.07M shares which equates to $5.21M worth of the stock. At third is Vanguard Extended Market Index Fund, which stood pat with 1.43M shares, a 1.04% position in Catalyst Pharmaceuticals, Inc., worth $5.41M. The insider holding in stood at 5.4% while institutions hold 52%.

Catalyst Pharmaceuticals, Inc. (NASDAQ:CPRX) dropped -3.06% in recent trade and currently has a stock-market value of $519.16M. The shares finished at $5.39, after trading as low as $5.23 earlier in the session. It hit an intraday high Friday at $5.64. Trading activity significantly weakened as the volume at ready counter decreased to 1,329,722 shares versus 3,117,935 in average daily trading volume over the past 20 days. So far this year, the volume has averaged about 1,584,976 shares. The stock is now 191.35% above against its bear-market low of $1.85 on January 02, 2019. It has retreated -5.38% since it’s 52-week high of $5.68 reached in April. Now the market price is up 105.73% on the year and up 180.73% YTD.

CPRX stock’s 50 day simple moving average (SMA 50) price is $3.62 and its 200-day simple moving average (SMA 200) price is $3.1. The company’s stock currently has a total float of 95.66M shares. Its weekly volatility is hovering around 5.26% and felt 8.79% volatility in price over a month. On the upside, the share price will test short term resistance at around $5.61. On a downside, the stock is likely to find some support, which begins at $5.2. The failure to get near-term support could push it to $5.01.

It had seen a new analyst call from Cantor Fitzgerald, which initiated the stock at Overweight on September 21. Analysts at Piper Jaffray, started covering the stock on September 07 with a Overweight rating. The stock won favor of Piper Jaffray analysts who expressed their confidence in it using an upgrade from Neutral to Overweight on October 05. Piper Jaffray analysts came out with bearish views on April 26 when the call was made. They think the stock is now Neutral compared to to their prior call for Overweight.

Moreover, it trades for 22.18 times the next 12 months of expected earnings. Also, it is trading at rather expensive levels at just over 11x price/book and 1038.33x price/sales. CPRX’s ROE is -51.9%, which is also considerably worse than the industry’s ROE of 10.06%. It’s also very liquid in the near term, with a current ratio of 5.8. The stock has a debt/capital of 0.

Shares of CPRX have gained 75% since the company’s most recent earnings report. Over the past 12 fiscal quarters, Catalyst Pharmaceuticals, Inc. (NASDAQ:CPRX) has topped consensus earnings estimates in 6 quarters (50%), missed earnings in 1 quarters (8%), whereas at 5 occasion EPS met analyst expectations. CPRX last reported earnings that receded expectations. The company raked in -$0.14 per share, -99.36% change on the same period last year. That was worse than consensus for -$0.12. For this quarter, Wall Street analysts forecast revenue in a range of $4 million to $10.1 million, which should be compared with $5.62 million generated last year. EPS is seen in a range of -$0.1 to -$0.05, against the -$0.01 reported a year ago.