Conatus Pharmaceuticals (CNAT) Downgraded by Zacks Investment Research to Sell

Conatus Pharmaceuticals (NASDAQ:CNAT) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report issued on Monday.

According to Zacks, “Conatus is conducting several phase IIb studies on its lead candidate emricasan, targeting different types of NASH patient populations. Though Conatus is progressing well with emricasan, it is still several years away from entering the market. Any development/regulatory setback of emricasan could hamper Conatus’ prospects. Notably, several companies are working on developing treatments for NASH, which might make the market competitive for emricasan. The stock has underperformed the industry in the last one year. However, the market for NASH holds huge untapped potential. Also, Conatus’ agreement with Novartis for emricasan is a big positive as it not only lends expertise to the company, but also provides it with funds to develop emricasan. Estimates have been stable lately ahead of the company’s Q4 earnings release. The company has negative record of earnings surprises in recent quarters.”

CNAT has been the subject of several other research reports. Seaport Global Securities reiterated a “buy” rating and issued a $16.00 target price on shares of Conatus Pharmaceuticals in a research report on Friday, October 6th. HC Wainwright restated a “buy” rating and set a $17.00 price objective (down previously from $18.00) on shares of Conatus Pharmaceuticals in a research report on Thursday, November 2nd. One research analyst has rated the stock with a sell rating, one has assigned a hold rating and five have given a buy rating to the stock. Conatus Pharmaceuticals has an average rating of “Buy” and a consensus price target of $14.00.

Shares of Conatus Pharmaceuticals (NASDAQ:CNAT) traded down $0.06 on Monday, hitting $4.71. The stock had a trading volume of 181,300 shares, compared to its average volume of 250,323. The firm has a market cap of $147.78, a price-to-earnings ratio of -5.81 and a beta of 1.10. The company has a current ratio of 2.69, a quick ratio of 2.69 and a debt-to-equity ratio of 0.41. Conatus Pharmaceuticals has a one year low of $3.88 and a one year high of $9.40.

Conatus Pharmaceuticals (NASDAQ:CNAT) last issued its earnings results on Wednesday, November 1st. The biotechnology company reported ($0.13) EPS for the quarter, missing the consensus estimate of ($0.05) by ($0.08). The firm had revenue of $9.57 million during the quarter, compared to analyst estimates of $16.06 million. Conatus Pharmaceuticals had a negative return on equity of 83.02% and a negative net margin of 80.98%. During the same quarter in the previous year, the business posted ($0.31) EPS. sell-side analysts forecast that Conatus Pharmaceuticals will post -0.65 EPS for the current year.

Large investors have recently added to or reduced their stakes in the stock. Sterling Capital Management LLC acquired a new position in Conatus Pharmaceuticals during the 3rd quarter valued at approximately $708,000. Goldman Sachs Group Inc. raised its stake in Conatus Pharmaceuticals by 323.0% during the 2nd quarter. Goldman Sachs Group Inc. now owns 62,977 shares of the biotechnology company’s stock valued at $363,000 after acquiring an additional 48,090 shares in the last quarter. DAFNA Capital Management LLC bought a new stake in Conatus Pharmaceuticals during the 2nd quarter valued at $288,000. Macquarie Group Ltd. bought a new stake in Conatus Pharmaceuticals during the 3rd quarter valued at $330,000. Finally, Northern Trust Corp raised its stake in Conatus Pharmaceuticals by 640.6% during the 2nd quarter. Northern Trust Corp now owns 297,152 shares of the biotechnology company’s stock valued at $1,712,000 after acquiring an additional 257,030 shares in the last quarter. Institutional investors and hedge funds own 36.82% of the company’s stock.

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Conatus Pharmaceuticals Company Profile

Conatus Pharmaceuticals Inc is a biotechnology company. The Company focuses on the development and commercialization of medicines to treat liver disease. The Company operates through commercialization and development of pharmaceutical products segment. The Company is engaged in developing emricasan, which is an orally active pan-caspase protease inhibitor for the treatment of patients with chronic liver disease.

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