Arrowhead Pharmaceuticals (NASDAQ:ARWR) Shares Gap Up – What’s Next?

Arrowhead Pharmaceuticals, Inc. (NASDAQ:ARWR)’s stock price gapped up prior to trading on Tuesday . The stock had previously closed at $80.67, but opened at $82.89. Arrowhead Pharmaceuticals shares last traded at $74.8290, with a volume of 680,012 shares trading hands.

Arrowhead Pharmaceuticals News Summary

Here are the key news stories impacting Arrowhead Pharmaceuticals this week:

• Positive Sentiment: Arrowhead reported encouraging interim Phase 1/2a results for ARO-DIMER-PA, its first dual-functional RNAi therapy targeting PCSK9 and APOC3 for mixed hyperlipidemia. The early lipid-lowering data support the program’s potential in atherosclerotic cardiovascular disease and expand the company’s pipeline beyond its existing programs. Arrowhead ARO-DIMER-PA data
• Positive Sentiment: Management highlighted Arrowhead’s “massive pipeline” and projected that Redemplo could ultimately generate approximately $3 billion to $4 billion in peak sales, offering a substantial long-term opportunity if development and commercialization progress as planned. Redemplo outlook and pipeline
• Neutral Sentiment: At the Morgan Stanley healthcare conference, Arrowhead provided additional commentary on its pipeline and development strategy. The presentation reinforces the long-term investment case but did not appear to provide an immediate catalyst strong enough to offset short-term concerns. Morgan Stanley conference transcript
• Negative Sentiment: Despite the favorable ARO-DIMER-PA announcement, ARWR suffered its worst trading session in more than a year. Investors appear to be engaging in a “sell-the-news” reaction, locking in gains after a strong prior run and focusing on the fact that the cholesterol-drug data remain early-stage and require further clinical validation. ARWR sell-the-news reaction
• Negative Sentiment: Arrowhead’s expectation that Redemplo will have a slow-burn launch, rather than immediate blockbuster sales, may be weighing on near-term revenue expectations. The long-term peak-sales estimate is positive, but investors may be disappointed by the projected pace of adoption. ARWR reaction to early-stage data

Wall Street Analysts Forecast Growth

ARWR has been the subject of several research analyst reports. B. Riley Financial raised their price objective on Arrowhead Pharmaceuticals from $101.00 to $123.00 and gave the company a “buy” rating in a research note on Thursday, July 30th. Chardan Capital reaffirmed a “buy” rating and issued a $115.00 price objective on shares of Arrowhead Pharmaceuticals in a research note on Monday, August 31st. Piper Sandler restated an “overweight” rating and issued a $126.00 price target (up from $110.00) on shares of Arrowhead Pharmaceuticals in a report on Thursday, July 23rd. Royal Bank Of Canada reissued an “outperform” rating and set a $100.00 price target on shares of Arrowhead Pharmaceuticals in a research report on Monday, August 31st. Finally, Citigroup began coverage on Arrowhead Pharmaceuticals in a report on Tuesday, September 8th. They issued a “buy” rating and a $108.00 price objective for the company. Ten investment analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $99.15.

Arrowhead Pharmaceuticals Stock Down 6.9%

The firm’s 50-day moving average price is $83.45 and its 200 day moving average price is $75.30. The firm has a market cap of $9.27 billion, a P/E ratio of -29.24 and a beta of 1.28. The company has a quick ratio of 5.90, a current ratio of 5.90 and a debt-to-equity ratio of 1.77.

Arrowhead Pharmaceuticals (NASDAQ:ARWR) last issued its quarterly earnings data on Tuesday, August 4th. The biotechnology company reported ($1.36) earnings per share (EPS) for the quarter, missing the consensus estimate of ($1.23) by ($0.13). The business had revenue of $75.25 million for the quarter, compared to analyst estimates of $44.17 million. Arrowhead Pharmaceuticals had a negative return on equity of 60.06% and a negative net margin of 47.79%.The business’s quarterly revenue was up 171.0% on a year-over-year basis. During the same quarter in the prior year, the firm posted ($1.26) earnings per share. As a group, research analysts expect that Arrowhead Pharmaceuticals, Inc. will post -3.62 earnings per share for the current year.

Insider Transactions at Arrowhead Pharmaceuticals

In other Arrowhead Pharmaceuticals news, Director Adeoye Y. Olukotun sold 2,000 shares of the company’s stock in a transaction dated Tuesday, August 18th. The shares were sold at an average price of $86.96, for a total value of $173,920.00. Following the completion of the sale, the director directly owned 31,600 shares of the company’s stock, valued at approximately $2,747,936. This represents a 5.95% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Michael S. Perry sold 11,600 shares of the company’s stock in a transaction on Tuesday, August 18th. The shares were sold at an average price of $87.30, for a total value of $1,012,680.00. Following the sale, the director directly owned 111,459 shares of the company’s stock, valued at approximately $9,730,370.70. This represents a 9.43% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 3.60% of the stock is currently owned by insiders.

Institutional Trading of Arrowhead Pharmaceuticals

Institutional investors have recently bought and sold shares of the company. Versant Capital Management Inc lifted its position in shares of Arrowhead Pharmaceuticals by 285.1% during the 2nd quarter. Versant Capital Management Inc now owns 335 shares of the biotechnology company’s stock worth $27,000 after purchasing an additional 248 shares during the last quarter. Carolina Wealth Advisors LLC raised its position in Arrowhead Pharmaceuticals by 80.6% in the 2nd quarter. Carolina Wealth Advisors LLC now owns 345 shares of the biotechnology company’s stock valued at $28,000 after purchasing an additional 154 shares during the last quarter. Optiver Holding B.V. lifted its position in shares of Arrowhead Pharmaceuticals by 83.8% during the first quarter. Optiver Holding B.V. now owns 408 shares of the biotechnology company’s stock worth $26,000 after purchasing an additional 186 shares in the last quarter. Persistent Asset Partners Ltd acquired a new position in shares of Arrowhead Pharmaceuticals during the second quarter valued at $39,000. Finally, Allied Private Wealth LLC acquired a new position in Arrowhead Pharmaceuticals in the second quarter valued at approximately $43,000. Institutional investors and hedge funds own 62.61% of the company’s stock.

Arrowhead Pharmaceuticals Company Profile

Arrowhead Pharmaceuticals, Inc (NASDAQ:ARWR) is a biopharmaceutical company focused on developing medicines that silence disease-causing genes. The company uses RNA interference (RNAi), a biological process that reduces the production of specific proteins, to target conditions that may be difficult to treat with conventional drugs.

Arrowhead’s proprietary TRiM platform is designed to deliver RNAi-based therapies to different tissues, including the liver, lungs and other organs. Its investigational pipeline has included candidates for cardiovascular and metabolic diseases, liver disorders, pulmonary conditions and inflammatory diseases.