Puma Biotechnology, Inc. (NASDAQ:PBYI) Stock Seems Too Hot To Handle

Stock analysts at Goldman cut their rating on shares of Puma Biotechnology, Inc. (NASDAQ:PBYI) from Neutral to a new rating of Sell in their opinion released on October 08. Citigroup analysts have downgraded their rating of PBYI shares from Buy to Neutral in a separate flash note to investors on May 10. Analysts at Cantor Fitzgerald downgraded the company stock to a Neutral call from its previous Overweight stance, in a flash note that dated back to May 10.

For the period that ended January 15, 2020, the short interest in Puma Biotechnology, Inc. (NASDAQ:PBYI) stock is on the up. The 12.41% 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 3.2 suggests acquiring these shares. Between December 31 and January 15, the total count of shorted shares totaled 7.82 million. That number was 863,474 more shares compared with the total of 6.96 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 PBYI at the January 15th settlement retreated to 1,405,368, versus 1,521,638 at the December 31st report. That led days to cover to move at 5.565852, a 21.71% increase compared to the 4.573096 days to cover recorded at the prior short interest data release.

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 02/03/2020. BRYCE RICHARD PAUL parted with a total of 0.11 thousand shares of the firm at average share price of $8.02. The total amount for the sale was set at $0.84 thousand. On completing this exchange, the insider’s account balance was 34.83 thousand shares. The stock grew 77.81 percent from that insider sale. On 02/03/2020, AUERBACH ALAN H, PRESIDENT AND CEO, 10% Owner, did a sale of 0.33 thousand shares at a price of $8.01 per share. This got rid of 2.65 thousand shares from the insider’s fortune and the stock experienced a 78.03 percent rally in price since the news became public. This exchange saw 4.18 million shares get out from the PRESIDENT AND CEO, 10% Owner account. On 01/02/2020, PRESIDENT AND CEO, 10% Owner AUERBACH ALAN H recorded a sale transaction valued at $50.47 thousand. The sale at $8.39 a share has eliminated 6.02 thousand shares from the insider’s portfolio position. Meanwhile, shares price witnessed 69.96 percent increase since the transaction reporting date. The company insider is left with 4.18 million shares remaining in the account. BRYCE RICHARD PAUL, performed a sale of 1.52 thousand shares in a transaction worth $12.73 thousand. The disposal recorded on 01/02/2020 was priced at $8.4 per share. The stock price soared 69.76 percent since the transaction. BRYCE RICHARD PAUL currently holds a stake of 34.94 thousand in PBYI stock which is worth $497.18 thousand after the insider selling.

Puma Biotechnology, Inc. (PBYI) is most likely going to rise -13.91 percent in the coming 12 months, as per price target approximations compiled by finviz. Nevertheless, they have set the price target at a $21 as 12-month high price target. This represents a whopping 47.58 percent increase from the current trading price of shares. The 52-week median price target given by the analysts is $13.5, which means a return possibility of -5.13 percent in comparison with the closing price of the stock of $14.23 in recent trading session. The lowest price set for the stock is $6 which is just above -57.84 percent from PBYI share’s price at the end of session.

The stock is lingering around the initial support level of $8.75. After this, the following support is at the zone of $6.92. 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 78.26 on the daily chart, and this may be a cause for concern. In case the price goes below $6.92 level on closing basis, there may be more profit booking with the stock growing weaker. Still, getting to the $11.59 level may cause a pull-back move approaching $12.61 mark.

In the recent trading session, Puma Biotechnology, Inc. (NASDAQ:PBYI) shares gained 34.5% or 3.65 points to reach at $14.23 with a heavy trading volume of 17.327 million shares. It opened the trading session at $8.19, the shares rose to $10.78 and dropped to $7.935, the range by which the price of stock traded the whole session. The company now has a market cap of $425 million and currently has 40.15 million outstanding shares. Puma Biotechnology, Inc. (PBYI) stock has accumulated 26.71 percent of market value in 21 trading days.

PBYI stock’s trailing 3-year beta is 1.73, 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 surged 20.91 percent year to date (YTD) compared to a decline of -61.85 percent in 52 week’s period. The firm’s shares are still trading -67.59 percent below its 1-year high of $43.90 and 127.32 percent up from 52-week low of $6.26. The average consensus ranking on the company is 3.2, 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 hold.

Puma Biotechnology, Inc. (PBYI) shares are trading at a P/E ratio of -3.18 times earnings posted in the trailing 12 months. The industry PBYI deals with has an average P/E of 22.34. Its P/B ratio is standing at -10.21X compared to the 10.88 industry average. It is additionally sporting a 1.5 on the Price-to-Sales ratio, compared to the industry’s P/S average of 0.25. 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%.

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 -15.7 percent to $59.96M in the financial fourth quarter, while EPS will soar by about -40 percent to -$0.48 per share. In the last quarter, it’s 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, 26 percent in the coming year.