Mirum Pharmaceuticals Receives Strong-Buy Upgrades from Analysts
Mirum Pharmaceuticals (NASDAQ:MIRM) has received a significant upgrade from Wall Street Zen, which has raised its rating from “buy” to “strong-buy.” This change, reported on Friday, reflects a growing confidence among analysts regarding the company’s potential. Several other investment firms have echoed this sentiment in recent weeks.
On August 7, 2023, Raymond James Financial reaffirmed a “strong-buy” rating for Mirum. The following day, Evercore ISI increased its price target for the stock from $77.00 to $89.00, while also assigning an “outperform” rating. Moreover, JPMorgan Chase & Co. raised its price objective from $53.00 to $77.00, categorizing the stock as “overweight.” Meanwhile, HC Wainwright adjusted its target price from $73.00 to $80.00, maintaining a “buy” rating. Overall, Mirum Pharmaceuticals has garnered two strong buy ratings and nine buy ratings, leading to a consensus rating of “buy” with an average price target of $76.50, according to MarketBeat.
Quarterly Earnings Report and Performance Overview
In its latest quarterly earnings report released on August 6, 2023, Mirum Pharmaceuticals reported earnings of ($0.12) per share, surpassing the consensus estimate of ($0.31) by $0.19. The company achieved revenue of $127.79 million, significantly exceeding analyst expectations of $107.91 million. This marks a year-over-year revenue increase of 64.1%, while the previous year’s earnings per share stood at ($0.52).
Despite these positive indicators, Mirum Pharmaceuticals continues to face challenges, reflected in its negative return on equity of 24.76% and a negative net margin of 13.65%. Analysts predict that the company will report earnings per share of (1.43) for the current year.
Insider Activity and Stock Transactions
Recent insider trading activity has also drawn attention. CEO Christopher Peetz sold 40,000 shares on August 11 for an average price of $62.00, totaling $2,480,000. Following this transaction, Peetz’s remaining stake in the company stands at 138,641 shares, valued at approximately $8,595,742. This sale represents a 22.39% decrease in his ownership.
Additionally, Senior Vice President Jolanda Howe sold 10,000 shares on August 7 at an average price of $58.00, amounting to $580,000. After this sale, Howe’s holdings reduced to 2,426 shares, valued at $140,708, which is an 80.48% decrease. Over the past three months, insiders have sold a total of 117,619 shares, amounting to $7,313,448. Currently, corporate insiders own 22.87% of Mirum Pharmaceuticals.
Institutional Investors’ Movements
Institutional investors have also been active in adjusting their positions in Mirum Pharmaceuticals. Legal & General Group Plc increased its holdings by 0.4% in the second quarter, now owning 43,010 shares worth $2,189,000. Similarly, Teacher Retirement System of Texas raised its stake by 2.2%, bringing its total to 9,903 shares valued at $504,000.
Other notable movements include Palumbo Wealth Management LLC, which boosted its position by 4.2%, now holding 5,604 shares worth $285,000, and Mirae Asset Global Investments Co. Ltd., increasing its stake by 14.9% to 1,914 shares valued at $97,000. Comerica Bank also raised its position by 45.1% in the first quarter, now owning 895 shares valued at $40,000.
Mirum Pharmaceuticals continues to focus on developing and commercializing therapies for rare and orphan diseases, with its lead product candidate, LIVMARLI (maralixibat), already approved for treating cholestatic pruritus in patients with Alagille syndrome both in the United States and internationally. As the company navigates the competitive landscape, analysts’ upgrades signify a positive outlook for its growth trajectory.
