Depomed, Inc. (NASDAQ:DEPO) Shares Down 33.4% After Earnings Miss
Depomed, Inc. (NASDAQ:DEPO) shares fell 33.4% during trading on Tuesday following a weaker than expected earnings announcement. The stock traded as low as $6.14 and last traded at $6.15, with a volume of 16,969,557 shares traded. The stock had previously closed at $9.23.
The specialty pharmaceutical company reported ($0.43) earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of $0.09 by $0.52. The business had revenue of $100 million during the quarter, compared to analyst estimates of $100.40 million. Depomed had a negative net margin of 21.41% and a negative return on equity of 25.33%. The business’s quarterly revenue was down 14.3% compared to the same quarter last year. During the same period last year, the business earned $0.27 EPS.
A number of research firms have issued reports on DEPO. Royal Bank Of Canada lowered their target price on Depomed from $13.00 to $10.00 and set a “sector perform” rating on the stock in a report on Tuesday. Morgan Stanley lowered Depomed from an “equal weight” rating to an “underweight” rating in a report on Tuesday. Mizuho decreased their price objective on Depomed from $13.00 to $11.00 and set a “neutral” rating on the stock in a report on Thursday, May 25th. Janney Montgomery Scott lowered Depomed from a “buy” rating to a “neutral” rating and decreased their price objective for the stock from $18.00 to $8.00 in a report on Tuesday. Finally, ValuEngine raised Depomed from a “strong sell” rating to a “sell” rating in a report on Friday, June 2nd. Four analysts have rated the stock with a sell rating, six have issued a hold rating and three have issued a buy rating to the company. The company presently has an average rating of “Hold” and a consensus price target of $15.64.
In related news, insider Arthur J. Higgins bought 15,000 shares of the business’s stock in a transaction that occurred on Monday, June 12th. The stock was acquired at an average price of $9.92 per share, for a total transaction of $148,800.00. The purchase was disclosed in a document filed with the SEC, which is available through the SEC website. 2.59% of the stock is currently owned by company insiders.
Several institutional investors have recently bought and sold shares of DEPO. Norges Bank bought a new position in Depomed during the fourth quarter valued at approximately $13,075,000. Creative Planning increased its position in Depomed by 0.5% in the first quarter. Creative Planning now owns 40,245 shares of the specialty pharmaceutical company’s stock valued at $505,000 after buying an additional 185 shares during the period. Louisiana State Employees Retirement System increased its position in Depomed by 2.0% in the first quarter. Louisiana State Employees Retirement System now owns 25,300 shares of the specialty pharmaceutical company’s stock valued at $318,000 after buying an additional 500 shares during the period. Perkins Capital Management Inc. increased its position in Depomed by 3.7% in the first quarter. Perkins Capital Management Inc. now owns 75,667 shares of the specialty pharmaceutical company’s stock valued at $950,000 after buying an additional 2,667 shares during the period. Finally, Acadian Asset Management LLC bought a new position in Depomed during the first quarter valued at approximately $494,000. Institutional investors and hedge funds own 91.42% of the company’s stock.
The company’s market capitalization is $383.09 million. The company has a 50-day moving average of $10.54 and a 200-day moving average of $13.02.
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Depomed, Inc is a specialty pharmaceutical company. The Company focuses on pain and other central nervous system (CNS) conditions. Its products include NUCYNTA ER (tapentadol extended release tablets), NUCYNTA IR (NUCYNTA) (tapentadol), Gralise (gabapentin), CAMBIA (diclofenac potassium for oral solution), Zipsor (diclofenac potassium) and Lazanda (fentanyl).
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