Zacks Investment Research Upgrades Orexigen Therapeutics, Inc. (NASDAQ:OREX) to Buy
Orexigen Therapeutics, Inc. (NASDAQ:OREX) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research report issued to clients and investors on Monday. The firm currently has a $2.75 price target on the biopharmaceutical company’s stock. Zacks Investment Research‘s price target points to a potential upside of 15.06% from the stock’s current price.
According to Zacks, “Orexigen’s second-quarter results were impressive, with a narrower-than-expected loss and significant year-over-year increase in Contrave sales. The company’ssole marketed drug, Contrave, targets the obesity market, which represents immense commercial potential. Contrave sales are picking up slowly. With the acquisition of U.S. rights of Contrave in Mar 2016 from Takeda, Orexigen has adopted a targeted approach for ramping up Contrave sales. Contrave should benefit from a more targeted sales effort. However, accelerated commercialization efforts have increased costs which hurts profit. We are also optimistic about the company’s collaboration agreement with several companies for the commercialization of the drug in Europe. The company’s shares underperformed the industry in the last one year. Meanwhile, Orexigen’s dependence on Contrave for growth and early stage of pipeline candidates remain potent concerns.”
Separately, ValuEngine raised Orexigen Therapeutics from a “strong sell” rating to a “sell” rating in a research report on Tuesday, July 11th.
Orexigen Therapeutics (OREX) traded up 0.42% during mid-day trading on Monday, reaching $2.40. 21,116 shares of the company’s stock were exchanged. The company’s market capitalization is $36.54 million. Orexigen Therapeutics has a 52 week low of $1.65 and a 52 week high of $5.70. The company’s 50 day moving average price is $2.67 and its 200-day moving average price is $3.31.
Orexigen Therapeutics (NASDAQ:OREX) last announced its earnings results on Tuesday, August 8th. The biopharmaceutical company reported ($1.82) earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of ($2.40) by $0.58. Orexigen Therapeutics had a negative return on equity of 824.15% and a negative net margin of 120.77%. The company had revenue of $23.36 million for the quarter, compared to analyst estimates of $20 million. During the same period in the prior year, the company posted ($1.73) EPS. Orexigen Therapeutics’s quarterly revenue was up 199.9% on a year-over-year basis. On average, equities research analysts expect that Orexigen Therapeutics will post ($9.50) earnings per share for the current fiscal year.
Several large investors have recently bought and sold shares of the stock. Old West Investment Management LLC raised its stake in Orexigen Therapeutics by 0.3% in the first quarter. Old West Investment Management LLC now owns 206,687 shares of the biopharmaceutical company’s stock valued at $711,000 after buying an additional 669 shares in the last quarter. Foresite Capital Management III LLC raised its stake in Orexigen Therapeutics by 49.7% in the first quarter. Foresite Capital Management III LLC now owns 380,530 shares of the biopharmaceutical company’s stock valued at $1,309,000 after buying an additional 126,273 shares in the last quarter. Wells Fargo & Company MN raised its stake in Orexigen Therapeutics by 89.1% in the first quarter. Wells Fargo & Company MN now owns 44,538 shares of the biopharmaceutical company’s stock valued at $153,000 after buying an additional 20,988 shares in the last quarter. Foresite Capital Management II LLC raised its stake in Orexigen Therapeutics by 14.6% in the first quarter. Foresite Capital Management II LLC now owns 622,013 shares of the biopharmaceutical company’s stock valued at $2,140,000 after buying an additional 79,258 shares in the last quarter. Finally, KCG Holdings Inc. raised its stake in Orexigen Therapeutics by 30.0% in the first quarter. KCG Holdings Inc. now owns 43,954 shares of the biopharmaceutical company’s stock valued at $151,000 after buying an additional 10,139 shares in the last quarter. 45.13% of the stock is currently owned by institutional investors and hedge funds.
About Orexigen Therapeutics
Orexigen Therapeutics, Inc is a biopharmaceutical company. The Company is focused on the treatment of obesity. The Company’s product, Contrave, is approved in the United States by the United States Food and Drug Administration as an adjunct to a reduced-calorie diet and increased physical activity for chronic weight management in adults with an initial body mass index (BMI) of 30 kilograms per square meter or greater (obese) or 27 kilograms per square meter or greater (overweight) in the presence of a weight-related comorbid condition.
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