Depomed, Inc. (NASDAQ:DEPO) Hits New 1-Year Low on Disappointing Earnings
Depomed, Inc. (NASDAQ:DEPO) shares reached a new 52-week low on Monday following a weaker than expected earnings announcement. The stock traded as low as $9.19 and last traded at $9.18, with a volume of 851,923 shares traded. The stock had previously closed at $9.47.
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 company had revenue of $100 million during the quarter, compared to analysts’ expectations of $100.40 million. Depomed had a negative net margin of 26.02% and a negative return on equity of 43.02%. The company’s revenue for the quarter was down 14.3% on a year-over-year basis. During the same quarter last year, the business posted $0.27 earnings per share.
A number of research analysts recently issued reports on the company. Royal Bank Of Canada decreased their target price on Depomed from $13.00 to $10.00 and set a “sector perform” rating for the company in a report on Tuesday. Morgan Stanley cut Depomed from an “equal weight” rating to an “underweight” rating in a research note on Tuesday. Mizuho cut their price target on Depomed from $13.00 to $11.00 and set a “neutral” rating on the stock in a research note on Thursday, May 25th. Janney Montgomery Scott cut Depomed from a “buy” rating to a “neutral” rating and cut their price target for the company from $18.00 to $8.00 in a research note on Tuesday. Finally, ValuEngine upgraded Depomed from a “strong sell” rating to a “sell” rating in a research note on Friday, June 2nd. Four investment analysts have rated the stock with a sell rating, six have given a hold rating and three have given a buy rating to the stock. The stock has a consensus rating of “Hold” and an average target price of $15.64.
In other news, insider Arthur J. Higgins bought 15,000 shares of the business’s stock in a transaction dated Monday, June 12th. The shares were acquired at an average price of $9.92 per share, for a total transaction of $148,800.00. The purchase was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through this link. 2.59% of the stock is currently owned by insiders.
Several hedge funds have recently bought and sold shares of DEPO. Airain ltd purchased a new stake in Depomed during the first quarter worth approximately $128,000. State of Alaska Department of Revenue boosted its stake in Depomed by 79.5% in the second quarter. State of Alaska Department of Revenue now owns 12,298 shares of the specialty pharmaceutical company’s stock worth $132,000 after buying an additional 5,448 shares during the period. Municipal Employees Retirement System of Michigan boosted its stake in Depomed by 4.2% in the second quarter. Municipal Employees Retirement System of Michigan now owns 14,660 shares of the specialty pharmaceutical company’s stock worth $157,000 after buying an additional 590 shares during the period. Two Sigma Securities LLC purchased a new stake in Depomed during the first quarter worth approximately $180,000. Finally, Mason Street Advisors LLC boosted its stake in Depomed by 7.9% in the first quarter. Mason Street Advisors LLC now owns 14,521 shares of the specialty pharmaceutical company’s stock worth $182,000 after buying an additional 1,064 shares during the period. Institutional investors and hedge funds own 91.42% of the company’s stock.
The stock’s market cap is $383.09 million. The company has a 50 day moving average price of $10.54 and a 200-day moving average price of $13.02.
Depomed Company Profile
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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