High Short Interest Seen In Spectrum Pharmaceuticals, Inc. (NASDAQ:SPPI)?

For the period that ended December 31, 2019, the short interest in Spectrum Pharmaceuticals, Inc. (NASDAQ:SPPI) stock is on the up. The 31.92% rise could be an indication that investors and traders expect a drop in the share price, often as a result of a drop in the business’ fundamentals. The average brokerage opinion at 2.2 suggests acquiring these shares. Between December 13 and December 31, the total count of shorted shares totaled 11.46 million. That number was 2,773,419 more shares compared with the total of 8.69 million shares in the space of prior two weeks, which suggests more traders or funds are betting that the company stock will move down. The average daily volume for SPPI at the December 31st settlement surged to 4,679,458, versus 1,453,098 at the December 13th report. That led days to cover to move at 2.449377, a 59.03% decrease compared to the 5.979182 days to cover recorded at the prior short interest data release.

In the recent trading session, Spectrum Pharmaceuticals, Inc. (NASDAQ:SPPI) shares lost -0.77% or -0.03 points to close at $3.22 with a thin trading volume of 1.017 million shares. It opened the trading session at $3.27, the shares rose to $3.28 and dropped to $3.2, the range by which the price of stock traded the whole session. The company now has a market cap of $368 million and currently has 113.32 million outstanding shares. Spectrum Pharmaceuticals, Inc. (SPPI) stock has plunged -68.6 percent of market value in 21 trading days.

SPPI stock’s trailing 3-year beta is 2.47, 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 -$1.33 share in the trailing 52 weeks. The stock’s value fallen -10.71 percent year to date (YTD) compared to a decline of -70.1 percent in 52 week’s period. The firm’s shares are still trading -73.46 percent below its 1-year high of $12.15 and 5.74 percent up from 52-week low of $3.05. The average consensus ranking on the company is 2.2, 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 sell.

Spectrum Pharmaceuticals, Inc. (SPPI) is most likely going to rise 202.8 percent in the coming 12 months, as per price target approximations compiled by finviz. Nevertheless, they have set the price target at a $13 as 12-month high price target. This represents a whopping 303.73 percent increase from the current trading price of shares. The 52-week median price target given by the analysts is $11, which means a return possibility of 241.61 percent in comparison with the closing price of the stock of $3.22 in recent trading session. The lowest price set for the stock is $4 which is just above 24.22 percent from SPPI share’s price at the end of session.

Past records have indicated that shares in Spectrum Pharmaceuticals, Inc. declined on 20 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 SPPI’s Q4 earnings on March 04. Analysts are predicting revenue to suffer decline of -99.1 percent to $250M in the financial fourth quarter, while EPS will soar by about 10 percent to -$0.33 per share. In the last quarter, it’s earnings of -$0.47 per share came worse than the -$0.36, adjusted, expected by Thomson Reuters consensus estimate. Revenue for the quarter was $29.4M, topping the $25.48M analysts had expected. Earnings are seen to rise by -88.9 percent this year, -43.6 percent in the coming year.

Let’s take a glimpse at some insider activity at Spectrum Pharmaceuticals, Inc. (NASDAQ:SPPI) and observe the pattern. The earliest insider trade happened on 11/06/2019. LEBEL FRANCOIS parted with a total of 6.96 thousand shares of the firm at average share price of $8.16. The total amount for the sale was set at $56.82 thousand. On completing this exchange, the Chief Medical Officer account balance was 115.16 thousand shares. The stock lost -60.42 percent from that insider sale. On 08/12/2019, McGahan Keith M, Chief Legal Officer, did a sale of 0.29 thousand shares at a price of $7.77 per share. This got rid of 2.28 thousand shares from the insider’s fortune and the stock experienced a -58.43 percent retreat in price since the news became public. This exchange saw 137.72 thousand shares get out from the Chief Legal Officer account.

On 06/20/2019, Director Ashton William recorded a sale transaction valued at $57.14 thousand. The sale at $8.57 a share has eliminated 6.67 thousand shares from the insider’s portfolio position. Meanwhile, shares price witnessed -62.31 percent decrease since the transaction reporting date. The company insider is left with 16.67 thousand shares remaining in the account. McGahan Keith M, who works as Chief Legal Officer at the company, performed a sale of 3.54 thousand shares in a transaction worth $30.01 thousand. The disposal recorded on 06/19/2019 was priced at $8.49 per share. The stock price plunged -61.96 percent since the transaction. McGahan Keith M currently holds a stake of 137.83 thousand in SPPI stock which is worth $443.82 thousand after the insider selling.

The stock is lingering around the initial support level of $3.18. After this, the following support is at the zone of $3.1. Up until the time the SPPI stock hit levels beyond the current one, bulls should have no alarm. In terms of its momentum, the stock’s RSI hit 20.29 on the daily chart, and this may be a cause for comfort. In case the price goes below $3.1 level on closing basis, there may be more profit booking with the stock growing weaker. Still, getting to the $3.38 level may cause a pull-back move approaching $3.5 mark.

Spectrum Pharmaceuticals, Inc. (SPPI) shares are trading at a P/E ratio of -2.87 times earnings posted in the trailing 12 months. The industry SPPI deals with has an average P/E of 32.03. Its P/B ratio is standing at 1.71X compared to the 7.25 industry average. It is additionally sporting a 31.88 on the Price-to-Sales ratio, compared to the industry’s P/S average of 0.95. Spectrum Pharmaceuticals, Inc. has a 76.7% gross profit margin.