Antares Pharma, Inc., a leading combination drug-device company, gears its efforts towards the manufacture and commercialization of proprietary and parenteral pharmaceutical products. Founded in 1978, the company has made significant alliances with industry heavyweights in the pharmaceutical sector, including AMAG Pharmaceuticals, Teva, and Pfizer Inc. Some of its pharmaceutical products, include OTREXUP® injection, XYOSTED® injection, and Sumatriptan injection USP (distributed by Teva). Antares Pharma headquarters are based in Ewing, New Jersey. As of April 2, 2020, Antares Pharma, Inc. (NASDAQ: ATRS) stock was trading at 2.295 per share.
Is Antares Pharma (NASDAQ: ATRS) Worth a Buy?
The stock’s asset price has been plummeting significantly since the company’s inception. ATRS stock price has been on a slumping trend, and this may symbolize that in that given period, similar market segments were less popular. According to Gov Capital’s customized algorithm, this prediction was based on several variables such as price and volume changes, similar stock markets, and market cycles.
According to this system, they predict ATRS stock at $4.600 or 6.815% per share annually. For instance, an investment of $200 today will be worth 206.815 come April 2, 2020. Trading on optimistic markets is much more comfortable, and this stock may be a suitable portfolio addition. But does this forecast mean that Antares Pharma Stock is a substantial long-term investment?
ATRS By the Numbers
In its Q4 report, ATRS revenue surged 101% to $37.8 million, year over year. Stock interpreters had earlier predicted that its fourth-quarter would stand at $32.28 million. In the report, the company’s net income was at $4.7 million ($0.03 per share) as per the GAAP (generally accepted accounting principles). And this is in comparison to a similar period in 2018 when it reported a net income of $6.1 million (0.04 per share). On average, analysts predicted neither losses nor earnings, but a break-even for the fourth quarter. ATRS rested Q4 with cash equivalents as well as a short-term investment of $45.7 million. Compared to December 31 2018, the figure was up from $27.9 million.
ATRS Behind the Numbers
Antares Pharma generates revenue in various ways, including royalties, product sales, and development activities. The company’s sales were $28.5 million in Q4, an all-time high, and double the previous year, which registered $14.2 million. Besides, it announced more significant sales on its chemotherapy Otrexup and testosterone Xyosted injection. Additionally, the company’s partnership with Teva and AMAG Pharmaceuticals boosted its product sales year over year. According to Newsheater, the fourth quarter saw ATRS development and licensing revenue rise to $3.2 million up from $1.1 million the previous year. According to the company, this increase in revenue resulted from its Teva pen-development and Pfizer rescue pen projects. Also, it reported $6.2 million royalty revenue in Q4, way beyond the $3.5 million registered the previous year. Ideally, this increase was as a result of its generic epinephrine auto-injector sales by Teva, and Makena subcutaneous auto-injector sales by AMAG. However, after launching the Xyosted, the company’s operating costs soared to $18.2 million, year over year by 22%.
Varied Opinions from Stock Analysts
Different stock analysts presented various reports on the Antares Pharma stock. According to a report by H.C Wainwright, ATRS shares were a “Buy.” The brokerage firm predicted a $3.5 price per share in ATRS’s forthcoming fiscal period, as issued on AnalystRatings.com. Other analysts had different opinions, with BidaskClub predicting a “Sell” to a “Strong Sell” for the ATRS stock. Conversely, ValueEngine lowered ATRS stock from a “Buy” to a “Hold” rating. With a market capitalization of $525.59 million, ATRS shares opened at $3.11. Its 50-day standard moving average is $3.72 while the 200-day usual moving average holds at $3.86. Additionally, the company has a 12-month high of $5.13 and a low of $2.60. Antares Pharma also has a 1.00 debt-to-equity quotient, 2.95 current ratios, and a 2.46 quick ratio.
The company reported its earnings results at $0.03 EPS last on Tuesday, March 3. It also recorder a -0.56% net margin and -1.40% return on equity. In the current fiscal year, analysts forecast -0.04 earnings per share on average for ATRS stock. On December 9, 2019, ATRS CEO Robert F. Apple sold his 308,000 stock shares at $4.62 per share, amounting to $1,422,960.00. Consequently, Apple now owns 2,005,891 shares of Antares Pharma’s overall stock at a value of $9,267,216.42. Various institutional and hedge fund investors have also bought and sold the company stock shares recently. For instance, Amundi Pioneer Asset Management Inc. purchased a new stake in ATRS worth $730,000 in Q1 while Envestnet Asset Management Inc increased its stake in the company by 10% in Q3, to mention but a few.
Is Antares Pharma a Volatile Stock?
In case you are interested in purchasing a stake in the ATRS stock market, consider its beta (how volatile the share price is) and figure out how the company’s stock can affect your portfolio. Volatility defines the amount of risk and may fall into a couple of categories: company-specific volatility and market volatility. You can analyze the diversification of independent stocks to minimize the volatility impact on your portfolio. Besides, each stock on the market suffers from market volatility since there is a correlation between stock prices in any dynamic market.
Antares Pharma has a beta of 0.93, and this has always been as volatile as the broader market. Now, if the future seems to resemble the past, we can conclude that the company’s stock price can experience the same volatility as the general market. Hence, share price volatility is an essential consideration. However, long-term investors will pay attention to revenue history and growth in earnings as vital determinants to consider. Therefore, before making your decision, assess how ATRS fares in this regard.
As you can see, it’s crucial to always have a more comprehensive overview and see how analyst predictions compare for both ATRS past stock performance as well as its peers in the market. Most importantly, you should understand that these analysts will mostly depreciate their earnings per share estimates. Thus, this shows that there’s a possible decline in the result’s opinion. While there were no major revenue change predictions, analysts are still optimistic that Antares Pharma can even grow quicker than the broader market.