Analysts Take Aim at Shares of Eagle Pharmaceuticals, Inc. (NASDAQ:EGRX)

Eagle Pharmaceuticals, Inc. (NASDAQ:EGRX) is expected to report earnings of $2.93 per share when the firm issues their next quarterly results.  The firm will most likely release their report on or around 2017-02-23 . This is based on the most recent information offered by Zacks. 

How will actual numbers compare with the estimates?  Analysts will be paying close attention to how the numbers match up. A significant swing in the stock price can cause the stock to fluctuate after the numbers are released. Last quarter, Eagle Pharmaceuticals, Inc. recorded a surprise factor of 2.82%.  Meanwhile, the EPS number was $0.02  — slightly off from the analyst’s research summary.

Will the stock rise or take a dive?

Price targets, according to researchers on Wall Street, range from $78 to $102.  Research firms also report a standard deviation of $10.5.  The consensus target from the 4 analysts providing projections currently stands at $92.75. The mean target was last amended on 2016-11-16.  This is the short term forecast for next year.

Wall Street Tip: Who does the research?

Analysts are hired by firms on Wall Street to study stocks – that’s their full time job.   They research the numbers by looking at a company’s balance sheet and cash flow, which helps determine the overall health of the business.  This information helps the analysts predict future earnings trends.  When you hear a “buy” or “sell” recommendation, that prediction is most likely based on the company’s fundamentals.  Investors do not take analyst’s recommendations lightly – that’s why you might see a stock’s price change immediately after an analyst changes their outlook.

Of course, analyst recommendations should be approached with caution because sometimes a conflict of interest can arise if the analyst works has an existing relationship with the company they are paid to track.  Oftentimes analysts create reports on companies that is a client of their employer.  Would you want to offend a client or potential client?  Neither would analysts – so be wary of a positive outlook for that reason.

How can an investor determine the consensus on a stock?  Investors take the average brokerage recommendation score (ABR) to determine the consensus take on a given stock.  The ABR is an average of the actual recommendations provided by analysts.  It’s specific to a particular stock. The ABR ranked by a range of 1 to 5 (1 representing a Strong Buy; 5 a Strong Sell).  Take heed: analysts can be a bit overly optimistic on their ratings.  Before an important investment decision is made, investors must take into consideration the potentially overly optimistic rank.  Usually if something seems too good to be true, it is.  Currently, Eagle Pharmaceuticals, Inc. (NASDAQ:EGRX) has shares with an ABR of 1.75, based on the recommendations of 4.

This article is intended for informational purposes, and should not be considered a recommendation to buy or sell shares of Eagle Pharmaceuticals, Inc. (NASDAQ:EGRX).


Leave a Comment