Catalyst Pharmaceuticals (NASDAQ:CPRX) Posts Earnings Results, Beats Expectations By $0.18 EPS

Catalyst Pharmaceuticals (NASDAQ:CPRX) released its earnings results on Wednesday. The biopharmaceutical company reported $0.68 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.50 by $0.18, FiscalAI reports. The firm had revenue of $148.39 million for the quarter, compared to the consensus estimate of $136.79 million. Catalyst Pharmaceuticals had a return on equity of 40.78% and a net margin of 37.36%. Catalyst Pharmaceuticals updated its FY 2025 guidance to EPS.

Catalyst Pharmaceuticals Price Performance

CPRX stock traded up $0.40 during trading on Friday, hitting $21.39. 1,945,705 shares of the company traded hands, compared to its average volume of 1,364,584. Catalyst Pharmaceuticals has a 1 year low of $19.05 and a 1 year high of $26.58. The company has a market cap of $2.62 billion, a PE ratio of 12.96, a P/E/G ratio of 0.84 and a beta of 0.79. The stock’s 50-day simple moving average is $20.50 and its 200 day simple moving average is $21.79.

Catalyst Pharmaceuticals announced that its board has approved a stock repurchase program on Wednesday, October 1st that authorizes the company to buyback $200.00 million in outstanding shares. This buyback authorization authorizes the biopharmaceutical company to purchase up to 8.3% of its shares through open market purchases. Shares buyback programs are usually an indication that the company’s leadership believes its shares are undervalued.

Analyst Ratings Changes

Several analysts have weighed in on CPRX shares. Zacks Research downgraded Catalyst Pharmaceuticals from a “strong-buy” rating to a “hold” rating in a research note on Tuesday, August 19th. Weiss Ratings reiterated a “hold (c+)” rating on shares of Catalyst Pharmaceuticals in a research report on Wednesday, October 8th. Citigroup increased their price target on shares of Catalyst Pharmaceuticals from $31.00 to $33.00 and gave the stock a “buy” rating in a report on Friday. Oppenheimer reissued an “outperform” rating and set a $33.00 price target on shares of Catalyst Pharmaceuticals in a research report on Friday. Finally, Wall Street Zen raised shares of Catalyst Pharmaceuticals from a “hold” rating to a “buy” rating in a report on Sunday, October 12th. Two investment analysts have rated the stock with a Strong Buy rating, seven have issued a Buy rating and two have given a Hold rating to the company. According to data from MarketBeat, Catalyst Pharmaceuticals has a consensus rating of “Buy” and an average price target of $33.14.

Insider Activity

In related news, insider Brian Elsbernd sold 30,000 shares of the stock in a transaction on Monday, September 8th. The shares were sold at an average price of $20.30, for a total transaction of $609,000.00. Following the sale, the insider directly owned 271,039 shares of the company’s stock, valued at approximately $5,502,091.70. This represents a 9.97% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. Also, insider Steve Miller sold 115,000 shares of Catalyst Pharmaceuticals stock in a transaction on Tuesday, August 26th. The shares were sold at an average price of $20.28, for a total transaction of $2,332,200.00. Following the completion of the transaction, the insider directly owned 949,663 shares of the company’s stock, valued at $19,259,165.64. The trade was a 10.80% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 243,970 shares of company stock worth $4,927,241 over the last 90 days. Company insiders own 10.40% of the company’s stock.

Institutional Investors Weigh In On Catalyst Pharmaceuticals

Hedge funds have recently modified their holdings of the company. E Fund Management Co. Ltd. grew its position in shares of Catalyst Pharmaceuticals by 8.9% during the 2nd quarter. E Fund Management Co. Ltd. now owns 10,656 shares of the biopharmaceutical company’s stock valued at $231,000 after acquiring an additional 871 shares during the period. Tower Research Capital LLC TRC raised its holdings in Catalyst Pharmaceuticals by 3,227.3% in the 2nd quarter. Tower Research Capital LLC TRC now owns 12,444 shares of the biopharmaceutical company’s stock worth $270,000 after purchasing an additional 12,070 shares during the period. Norges Bank purchased a new position in Catalyst Pharmaceuticals during the second quarter worth approximately $299,000. Creative Planning grew its holdings in Catalyst Pharmaceuticals by 19.6% in the second quarter. Creative Planning now owns 16,385 shares of the biopharmaceutical company’s stock valued at $356,000 after purchasing an additional 2,689 shares during the period. Finally, Quantbot Technologies LP grew its holdings in Catalyst Pharmaceuticals by 7.3% in the second quarter. Quantbot Technologies LP now owns 17,903 shares of the biopharmaceutical company’s stock valued at $388,000 after purchasing an additional 1,224 shares during the period. 79.22% of the stock is owned by hedge funds and other institutional investors.

About Catalyst Pharmaceuticals

Catalyst Pharmaceuticals, Inc, a commercial-stage biopharmaceutical company, focuses on developing and commercializing therapies for people with rare debilitating, chronic neuromuscular, and neurological diseases in the United States. It offers Firdapse, an amifampridine phosphate tablets for the treatment of patients with lambert-eaton myasthenic syndrome (LEMS); and Ruzurgi for the treatment of pediatric LEMS patients.