Eton Pharmaceuticals (NASDAQ:ETON) Stock Jumps 5.1% – Should You Buy?

Eton Pharmaceuticals, Inc. (NASDAQ:ETON) shares rose 5.1% during mid-day trading on Wednesday. The company traded as high as $55.96 and last traded at $56.0510. Approximately 52,455 shares traded hands during trading, a decline of 88% from the average session volume of 447,982 shares. The stock had previously closed at $53.33.

Wall Street Analysts Forecast Growth

Several research firms have recently commented on ETON. Craig Hallum raised their target price on shares of Eton Pharmaceuticals from $40.00 to $62.00 and gave the stock a “buy” rating in a research note on Tuesday, July 28th. B. Riley Financial restated a “buy” rating and issued a $70.00 target price (up from $40.00) on shares of Eton Pharmaceuticals in a research note on Friday, August 14th. HC Wainwright boosted their price target on shares of Eton Pharmaceuticals from $65.00 to $70.00 and gave the stock a “buy” rating in a research report on Friday, August 14th. Canaccord Genuity Group upped their target price on Eton Pharmaceuticals from $60.00 to $68.00 and gave the company a “buy” rating in a report on Friday, August 14th. Finally, Zacks Research raised Eton Pharmaceuticals from a “hold” rating to a “strong-buy” rating in a research report on Monday. One investment analyst has rated the stock with a Strong Buy rating, four have given a Buy rating and one has given a Hold rating to the company. According to MarketBeat.com, the stock currently has a consensus rating of “Buy” and a consensus price target of $67.50.

Eton Pharmaceuticals Trading Up 0.2%

The business’s 50-day moving average price is $56.13 and its 200 day moving average price is $40.69. The company has a debt-to-equity ratio of 0.41, a quick ratio of 1.30 and a current ratio of 1.52. The company has a market cap of $1.53 billion, a P/E ratio of 140.49 and a beta of 0.90.

Eton Pharmaceuticals (NASDAQ:ETON) last released its quarterly earnings results on Thursday, August 13th. The company reported $0.43 earnings per share for the quarter, topping the consensus estimate of $0.19 by $0.24. The business had revenue of $37.59 million during the quarter, compared to analysts’ expectations of $27.11 million. Eton Pharmaceuticals had a return on equity of 40.13% and a net margin of 12.02%. As a group, analysts expect that Eton Pharmaceuticals, Inc. will post 1.13 earnings per share for the current year.

Insider Buying and Selling at Eton Pharmaceuticals

In related news, insider David Krempa sold 25,000 shares of the company’s stock in a transaction that occurred on Monday, August 24th. The stock was sold at an average price of $65.07, for a total transaction of $1,626,750.00. Following the transaction, the insider directly owned 37,025 shares of the company’s stock, valued at approximately $2,409,216.75. This represents a 40.31% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Paul V. Maier sold 50,000 shares of the stock in a transaction that occurred on Friday, August 28th. The stock was sold at an average price of $59.07, for a total value of $2,953,500.00. Following the completion of the sale, the director directly owned 59,745 shares of the company’s stock, valued at approximately $3,529,137.15. This trade represents a 45.56% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 79,166 shares of company stock valued at $4,809,672 in the last ninety days. Insiders own 16.49% of the company’s stock.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Toth Financial Advisory Corp purchased a new position in Eton Pharmaceuticals in the 2nd quarter worth approximately $43,000. Persistent Asset Partners Ltd bought a new stake in shares of Eton Pharmaceuticals during the 2nd quarter valued at about $90,000. Caitong International Asset Management Co. Ltd bought a new stake in shares of Eton Pharmaceuticals during the 4th quarter valued at $50,000. State of Wyoming purchased a new stake in shares of Eton Pharmaceuticals in the 2nd quarter worth approximately $107,000. Finally, Quantbot Technologies LP bought a new position in Eton Pharmaceuticals in the 2nd quarter valued at approximately $165,000. 27.86% of the stock is currently owned by hedge funds and other institutional investors.

Eton Pharmaceuticals Company Profile

Eton Pharmaceuticals, Inc is a specialty pharmaceutical company focused on developing, acquiring, and commercializing treatments for rare diseases and other underserved patient populations. The company’s strategy includes advancing proprietary product candidates and obtaining rights to established medicines that can address unmet medical needs.

Eton’s portfolio has included products such as Eprontia (topiramate) oral solution for certain seizure disorders and migraine prevention, Biorphen (phenylephrine hydrochloride) injection for the treatment of clinically important hypotension, and specialty medicines used in the management of rare metabolic and endocrine conditions.