According to Zacks, “Arena Pharmaceuticals reported impressive first-quarter results wherein earnings and sales surpassed the respective estimates. The company is focused on developing its two pipeline candidates – etrasimod and olorinab. The company out-licensed ralinepag to United Therapeutics and the fund is being used to support continuation of clinical development of other candidates. Meanwhile, the company’s decision to sell its manufacturing operations to focus on the pipeline is prudent, in our view. However, Arena’s pipeline candidates are in mid-stage development, which is a concern as any setback will have a negative impact on Arena’s prospects. Dependence on Belviq royalties is also concerning as the drug’s performance has been lackluster lately in a competitive market. Shares of the company have outperformed the industry so far this year.”
Other analysts also recently issued reports about the company. ValuEngine downgraded Arena Pharmaceuticals from a “buy” rating to a “hold” rating in a research report on Friday, May 10th. BidaskClub upgraded Arena Pharmaceuticals from a “hold” rating to a “buy” rating in a research report on Thursday, May 9th. Cantor Fitzgerald restated a “buy” rating and issued a $62.00 price target on shares of Arena Pharmaceuticals in a research report on Tuesday, February 26th. Credit Suisse Group raised their price target on Arena Pharmaceuticals from $63.00 to $77.00 and gave the stock an “outperform” rating in a research report on Wednesday, April 3rd. Finally, TheStreet upgraded Arena Pharmaceuticals from a “d” rating to a “c” rating in a research report on Monday, April 1st. Two research analysts have rated the stock with a hold rating and six have assigned a buy rating to the company’s stock. The stock presently has a consensus rating of “Buy” and a consensus price target of $62.17.
Arena Pharmaceuticals (NASDAQ:ARNA) last issued its quarterly earnings results on Wednesday, May 8th. The biopharmaceutical company reported $12.10 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($0.81) by $12.91. The company had revenue of $801.06 million during the quarter, compared to the consensus estimate of $801.82 million. Arena Pharmaceuticals had a return on equity of 69.72% and a net margin of 76.19%. Arena Pharmaceuticals’s revenue was up 45414.8% on a year-over-year basis. During the same period last year, the company earned ($0.80) earnings per share. As a group, equities analysts predict that Arena Pharmaceuticals will post 9.31 EPS for the current fiscal year.
In other Arena Pharmaceuticals news, Director Tina Susan Nova sold 1,200 shares of the stock in a transaction on Thursday, March 7th. The stock was sold at an average price of $45.99, for a total value of $55,188.00. Following the sale, the director now owns 12,676 shares in the company, valued at $582,969.24. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Company insiders own 1.92% of the company’s stock.
Hedge funds have recently added to or reduced their stakes in the business. Dimensional Fund Advisors LP purchased a new stake in shares of Arena Pharmaceuticals during the third quarter worth approximately $16,542,000. AQR Capital Management LLC increased its position in shares of Arena Pharmaceuticals by 14.7% during the third quarter. AQR Capital Management LLC now owns 42,391 shares of the biopharmaceutical company’s stock worth $1,951,000 after purchasing an additional 5,441 shares in the last quarter. Legal & General Group Plc increased its position in shares of Arena Pharmaceuticals by 134.5% during the third quarter. Legal & General Group Plc now owns 18,634 shares of the biopharmaceutical company’s stock worth $858,000 after purchasing an additional 10,688 shares in the last quarter. Vanguard Group Inc. increased its position in shares of Arena Pharmaceuticals by 2.9% during the third quarter. Vanguard Group Inc. now owns 4,669,780 shares of the biopharmaceutical company’s stock worth $214,903,000 after purchasing an additional 130,019 shares in the last quarter. Finally, Meeder Asset Management Inc. purchased a new stake in shares of Arena Pharmaceuticals during the fourth quarter worth approximately $249,000. Institutional investors and hedge funds own 84.65% of the company’s stock.
Arena Pharmaceuticals Company Profile
Arena Pharmaceuticals, Inc, a biopharmaceutical company, focuses on providing novel medicines with pharmacology and pharmacokinetics to patients worldwide. Its investigational clinical programs include ralinepag (APD811), which is in Phase III trial to treat pulmonary arterial hypertension; etrasimod (APD334) for ulcerative colitis, and Crohn's disease, as well as for atopic dermatitis and other indications; and Olorinab (APD371), which is in Phase II trial for the treatment of gastrointestinal pain.
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