Depomed, Inc. (DEPO) Shares Gap Down on Analyst Downgrade

Shares of Depomed, Inc. (NASDAQ:DEPO) gapped down before the market opened on Wednesday after Morgan Stanley downgraded the stock from an equal weight rating to an underweight rating. The stock had previously closed at $4.98, but opened at $6.15. Morgan Stanley now has a $5.00 price target on the stock, down from their previous price target of $12.00. Depomed shares last traded at $6.19, with a volume of 2,278,979 shares trading hands.

Other equities analysts also recently issued reports about the stock. Royal Bank Of Canada lowered their price objective on shares of Depomed from $13.00 to $10.00 and set a “sector perform” rating for the company in a research note on Tuesday, August 8th. Mizuho decreased their price target on shares of Depomed from $13.00 to $11.00 and set a “neutral” rating for the company in a research note on Thursday, May 25th. Janney Montgomery Scott downgraded shares of Depomed from a “buy” rating to a “neutral” rating and decreased their price target for the stock from $18.00 to $8.00 in a research note on Tuesday, August 8th. ValuEngine raised shares of Depomed from a “strong sell” rating to a “sell” rating in a research note on Friday, June 2nd. Finally, BidaskClub cut shares of Depomed from a “hold” rating to a “sell” rating in a report on Tuesday, July 11th. Four equities research analysts have rated the stock with a sell rating, six have issued a hold rating and three have issued a buy rating to the stock. The company has a consensus rating of “Hold” and a consensus target price of $14.59.

In other Depomed news, insider Arthur J. Higgins purchased 15,000 shares of the firm’s stock in a transaction on Monday, June 12th. The shares were acquired at an average cost of $9.92 per share, for a total transaction of $148,800.00. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. 2.59% of the stock is currently owned by company insiders.

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Piedmont Investment Advisors LLC acquired a new position in Depomed during the second quarter valued at $145,000. HighTower Advisors LLC increased its position in Depomed by 3.2% in the second quarter. HighTower Advisors LLC now owns 920,921 shares of the specialty pharmaceutical company’s stock valued at $9,883,000 after buying an additional 28,893 shares during the last quarter. Stonepine Capital Management LLC acquired a new position in Depomed during the second quarter valued at $1,360,000. Voya Investment Management LLC increased its position in Depomed by 10.4% in the second quarter. Voya Investment Management LLC now owns 29,495 shares of the specialty pharmaceutical company’s stock valued at $317,000 after buying an additional 2,790 shares during the last quarter. Finally, Dimensional Fund Advisors LP increased its position in Depomed by 85.6% in the second quarter. Dimensional Fund Advisors LP now owns 2,306,318 shares of the specialty pharmaceutical company’s stock valued at $24,770,000 after buying an additional 1,063,868 shares during the last quarter. Institutional investors and hedge funds own 92.78% of the company’s stock.

The firm’s market cap is $412.57 million. The firm has a 50-day moving average of $9.39 and a 200-day moving average of $12.20.

Depomed (NASDAQ:DEPO) last issued its earnings results on Monday, August 7th. The specialty pharmaceutical company reported ($0.43) earnings per share for the quarter, missing the Thomson Reuters’ consensus estimate of $0.09 by $0.52. The firm had revenue of $100 million during the quarter, compared to analyst estimates of $100.40 million. Depomed had a negative net margin of 26.02% and a negative return on equity of 45.03%. The firm’s revenue was down 14.3% compared to the same quarter last year. During the same period last year, the business earned $0.27 EPS. Analysts predict that Depomed, Inc. will post $0.48 EPS for the current fiscal year.

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About Depomed

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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