Zacks Investment Research cut shares of Arena Pharmaceuticals (NASDAQ:ARNA) from a hold rating to a sell rating in a research note released on Wednesday morning.

According to Zacks, “Arena’s only approved product is Belviq, used for chronic weight management. Though it was the first obesity drug to be approved by the FDA in over a decade, is yet to impress with its performance. Moreover, Arena’s pipeline consists of early-to-mid stage candidates, still several years from commercialization. Plus, competition remains intense in the obesity market with both branded and generic players. However, the company’s partnership agreements and efforts to improve the performance of the drug are impressive. We are also encouraged by the company’s cost-reduction initiatives to streamline the organization to support its development programs. Shares of the company have outperformed the industry in the last one year.”

ARNA has been the subject of a number of other research reports. Wells Fargo & Co raised shares of Arena Pharmaceuticals from a market perform rating to an outperform rating in a report on Wednesday, January 3rd. Cantor Fitzgerald reaffirmed a buy rating and issued a $37.00 price target on shares of Arena Pharmaceuticals in a report on Monday, September 25th. Finally, BidaskClub raised shares of Arena Pharmaceuticals from a buy rating to a strong-buy rating in a report on Wednesday, December 27th. One equities research analyst has rated the stock with a sell rating, two have given a hold rating, six have issued a buy rating and one has given a strong buy rating to the stock. Arena Pharmaceuticals currently has a consensus rating of Buy and an average price target of $36.00.

Arena Pharmaceuticals (ARNA) traded down $0.82 during midday trading on Wednesday, hitting $34.95. 836,156 shares of the company’s stock were exchanged, compared to its average volume of 581,333. The stock has a market capitalization of $1,372.24, a PE ratio of -37.58 and a beta of 1.50. Arena Pharmaceuticals has a fifty-two week low of $11.30 and a fifty-two week high of $41.92. The company has a current ratio of 4.42, a quick ratio of 4.32 and a debt-to-equity ratio of 0.27.

Arena Pharmaceuticals (NASDAQ:ARNA) last posted its quarterly earnings results on Tuesday, November 7th. The biopharmaceutical company reported ($0.65) earnings per share (EPS) for the quarter, topping the Zacks’ consensus estimate of ($0.66) by $0.01. The business had revenue of $7.95 million during the quarter, compared to analysts’ expectations of $5.48 million. Arena Pharmaceuticals had a negative net margin of 36.78% and a negative return on equity of 34.12%. The business’s quarterly revenue was down 58.6% on a year-over-year basis. During the same quarter last year, the company posted ($0.05) earnings per share. sell-side analysts forecast that Arena Pharmaceuticals will post -3.13 earnings per share for the current year.

Several institutional investors have recently modified their holdings of ARNA. State of Wisconsin Investment Board purchased a new position in shares of Arena Pharmaceuticals during the second quarter worth $410,000. American Century Companies Inc. purchased a new position in shares of Arena Pharmaceuticals during the second quarter worth $403,000. JPMorgan Chase & Co. raised its holdings in shares of Arena Pharmaceuticals by 16,992.7% during the second quarter. JPMorgan Chase & Co. now owns 317,754 shares of the biopharmaceutical company’s stock worth $5,361,000 after purchasing an additional 315,895 shares during the last quarter. GSA Capital Partners LLP purchased a new position in shares of Arena Pharmaceuticals during the second quarter worth $1,677,000. Finally, Balyasny Asset Management LLC purchased a new position in shares of Arena Pharmaceuticals during the second quarter worth $12,183,000. 72.82% of the stock is owned by hedge funds and other institutional investors.

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About Arena Pharmaceuticals

Arena Pharmaceuticals, Inc is a biopharmaceutical company. The Company is focused on developing small molecule drugs across a range of therapeutic areas. The Company has three primary investigational clinical programs: etrasimod (APD334) in Phase II evaluation for ulcerative colitis, APD371 entering Phase II evaluation for the treatment of pain associated with Crohn’s disease, and ralinepag (APD811) in Phase II evaluation for pulmonary arterial hypertension (PAH).

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