Depomed, Inc. (NASDAQ:DEPO) was down 33.4% on Tuesday following a dissappointing earnings announcement. The stock traded as low as $6.14 and last traded at $6.15, with a volume of 16,969,557 shares trading hands. The stock had previously closed at $9.23.
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 for 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 45.03%. The firm’s revenue for the quarter was down 14.3% compared to the same quarter last year. During the same period in the previous year, the firm posted $0.27 earnings per share.
A number of research analysts have issued reports on DEPO shares. Cantor Fitzgerald set a $14.00 price objective on shares of Depomed and gave the company a “hold” rating in a research report on Monday, May 15th. Royal Bank Of Canada reduced their price objective on shares of Depomed from $19.00 to $13.00 and set a “sector perform” rating on the stock in a research report on Wednesday, May 10th. Piper Jaffray Companies raised shares of Depomed from an “underweight” rating to a “neutral” rating and reduced their target price for the stock from $11.00 to $10.00 in a research report on Wednesday, May 10th. BidaskClub downgraded shares of Depomed from a “sell” rating to a “strong sell” rating in a research report on Saturday, August 5th. Finally, Mizuho reduced their target price on shares of Depomed from $13.00 to $11.00 and set a “neutral” rating on the stock in a research report on Thursday, May 25th. Four analysts have rated the stock with a sell rating, six have issued a hold rating and three have given a buy rating to the company’s stock. The company currently has an average rating of “Hold” and a consensus price target of $14.59.
In other Depomed news, insider Arthur J. Higgins acquired 15,000 shares of the stock in a transaction dated Monday, June 12th. The shares were purchased at an average price of $9.92 per share, for a total transaction of $148,800.00. The acquisition was disclosed in a filing with the SEC, which can be accessed through the SEC website. 2.59% of the stock is owned by corporate insiders.
Several institutional investors have recently modified their holdings of DEPO. Airain ltd acquired a new position in shares of Depomed during the first quarter valued at $128,000. State of Alaska Department of Revenue raised 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 valued at $132,000 after buying an additional 5,448 shares in the last quarter. Piedmont Investment Advisors LLC purchased a new stake in Depomed during the second quarter valued at about $145,000. Captrust Financial Advisors purchased a new stake in Depomed during the second quarter valued at about $147,000. Finally, Two Sigma Securities LLC purchased a new stake in Depomed during the first quarter valued at about $180,000. Hedge funds and other institutional investors own 92.78% of the company’s stock.
The stock has a 50 day moving average of $9.39 and a 200-day moving average of $12.20. The stock’s market capitalization is $412.57 million.
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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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