Why Did Puma Biotechnology, Inc. (PBYI) Stock Investors Go Insane?

For the period that ended November 15, 2019, the short interest in Puma Biotechnology, Inc. (NASDAQ:PBYI) stock is on the down. The 14.06% decline could be an indication that investors and traders expect a growth in the share price, often as a result of an advancement in the business’ fundamentals. The average brokerage opinion at 3.3 suggests acquiring these shares. Between October 31 and November 15, the total count of shorted shares totalled 6.62 million. That number was 1,083,168 less shares compared with the total of 7.71 million shares in the space of prior two weeks, which suggests more traders or funds are betting that the company stock will move up. The average daily volume for PBYI at the November 15th settlement surged to 1,858,307, versus 1,357,564 at the October 31st report. That led days to cover to move at 3.563867, a 37.21% decrease compared to the 5.67629 days to cover recorded at the prior short interest data release.

On December 03, 2019, Puma Biotechnology, Inc. (NASDAQ:PBYI) shares lost -12.86% or -1.38 points to close at $9.35 with a heavy trading volume of 3.501 million shares. It opened the trading session at $10.99, the shares rose to $11.1 and dropped to $9.25, the range by which the price of stock traded the whole day. The company now has a market cap of $352 million and currently has 37.69 million outstanding shares. Puma Biotechnology, Inc. (PBYI) stock has accumulated 31.14 percent of market value in 21 trading days.

PBYI stock’s trailing 3-year beta is 1.67, meaning there will be a greater rate of return, although posing a higher risk. The part of a firm’s profit given to each outstanding share of regular stock was -$2.47 share in the trailing 52 weeks. The stock’s value fallen -54.05 percent year to date (YTD) compared to a decline of -59.77 percent in 52 week’s period. The firm’s shares are still trading -78.7 percent below its 1-year high of $43.90 and 49.36 percent up from 52-week low of $6.26. The average consensus ranking on the company is 3.3, on a ranging where 5 is equal to a consensus sell rating. In other words, the mean analyst recommendations are ranking this stock as a hold.

Puma Biotechnology, Inc. (PBYI) is most likely going to rise 25.24 percent in the coming 12 months, as per price target approximations compiled by finviz. Nevertheless, they have set the price target at a $20-month high price target. This represents a whopping 113.9 percent increase from the current trading of shares. The 52-week median price target given by the analysts is $13, which means a return possibility of 39.04 percent in comparison with the closing price of the stock of $9.35 on December 03. The lowest price set for the stock is $6 — just above -35.83 percent from PBYI share price now.

Past records have indicated that shares in Puma Biotechnology, Inc. declined on 16 different earnings reaction days and we have yet to see whether this trend will play out and remain in place when the company reports upcoming earnings. Investors will get the next hint of PBYI’s Q4 earnings on February 26. Analysts are predicting revenue to suffer decline of -15.8 percent to $59.89M in the financial fourth quarter, while EPS will soar by about -37.5 percent to -$0.5 per share. In the last quarter, it earnings of -$0.44 per share came better than the -$0.77157, adjusted, expected by Thomson Reuters consensus estimate. Revenue for the quarter was $71.1M, topping the $54.43M analysts had expected. Earnings are seen to rise by 61.9 percent this year, 24.4 percent in the coming year.

Let’s take a glimpse at some insider activity at Puma Biotechnology, Inc. (NASDAQ:PBYI) and observe the pattern. The earliest insider trade happened on 11/04/2019. BRYCE RICHARD PAUL parted with a total of 0.09 thousand shares of the firm at average share price of $7.38. The total amount for the sale was set at $0.65 thousand. On completing this exchange, the insider’s account balance was 36.54 thousand shares. The stock grew 45.39 percent from that insider sale. On 11/04/2019, AUERBACH ALAN H, PRESIDENT AND CEO, 10% Owner, did a sale of 0.48 thousand shares at a price of $7.4 per share. This got rid of 3.54 thousand shares from the insider’s fortune and the stock experienced a 45 percent rally in price since the news became public. This exchange saw 4.19 million shares get out from the PRESIDENT AND CEO, 10% Owner account.

On 10/02/2019, BRYCE RICHARD PAUL recorded a sale transaction valued at $0.91 thousand. The sale at $10.05 a share has eliminated 0.09 thousand shares from the insider’s portfolio position. Meanwhile, shares price witnessed 6.77 percent increase since the transaction reporting date. The company insider is left with 36.63 thousand shares remaining in the account. AUERBACH ALAN H, who works as PRESIDENT AND CEO, 10% Owner at the company, performed a sale of 0.5 thousand shares in a transaction worth $5.02 thousand. The disposal recorded on 10/02/2019 was priced at $9.97 per share. The stock price soared 7.62 percent since the transaction. AUERBACH ALAN H currently holds a stake of 4.19 million in PBYI stock which is worth $39.16 million after the insider selling.

The stock is lingering around the initial support level of $8.7. After this, the following support is at the zone of $8.05. Up until the time the PBYI stock hit levels beyond the current one, bulls should have no alarm. In terms of its momentum, the stock’s RSI hit 53.81 on the daily chart, and this may be a cause for concern. In case the price goes below $8.05 level on closing basis, there may be more profit booking with the stock growing weaker. Still, getting to the $10.55 level may cause a pull-back move approaching $11.75 mark.

Puma Biotechnology, Inc. has a 86.8% gross profit margin, with its operating margin around -29.4%. Alongside this, the company’s net profit margin currently stands at -33.9%.