Arrowhead Pharmaceuticals Secures $43.71 Price Target from Analysts
Arrowhead Pharmaceuticals, Inc. (NASDAQ: ARWR) has garnered an average price target of $43.71 from nine brokerage firms monitoring the stock, according to MarketBeat Ratings. The company has received a consensus rating of “Moderate Buy,” with two analysts recommending a hold, six advising a buy, and one suggesting a strong buy. This positive outlook reflects the increasing confidence in the company’s financial performance and product pipeline.
Several analysts have recently updated their evaluations of Arrowhead Pharmaceuticals. Notably, Citigroup revised its target price for the stock from $21.00 to $17.00 while maintaining a “neutral” rating in a report dated May 13, 2023. In contrast, TD Cowen raised Arrowhead to a “strong buy” rating in a note released on July 28, 2023. HC Wainwright reaffirmed a “buy” rating, setting an ambitious price objective of $80.00 in a report on May 20, 2023, while Chardan Capital issued a similar buy rating with a target price of $60.00 on the same day. Additionally, Wall Street Zen downgraded Arrowhead from a “buy” to a “hold” rating in a report dated July 18, 2023.
Strong Quarterly Performance Boosts Analyst Confidence
Arrowhead Pharmaceuticals recently announced its quarterly earnings results on May 12, 2023. The biotechnology firm reported earnings per share (EPS) of $2.75, significantly exceeding the consensus estimate of a loss of $0.06 per share by $2.81. The company’s revenue for the quarter reached $542.71 million, vastly outpacing analyst projections of $116.27 million. In the same quarter the previous year, Arrowhead had reported a loss of $1.02 EPS. Analysts anticipate that Arrowhead will report an EPS of -2.42 for the current fiscal year.
Institutional Investment Trends
Recent trading activity indicates a growing interest from institutional investors in Arrowhead Pharmaceuticals. Exchange Traded Concepts LLC increased its stake by 31.8% in the first quarter of 2023, now holding 49,247 shares valued at approximately $627,000 after acquiring an additional 11,879 shares. Similarly, Raymond James Financial Inc. established a new position in the company during the fourth quarter, valued at around $651,000.
Furthermore, GAMMA Investing LLC expanded its holdings by 297.6% in the same period, raising its total to 2,175 shares worth $28,000. The New York State Teachers Retirement System also boosted its ownership by 6.9%, now possessing 148,376 shares valued at $1.89 million. Finally, Principal Financial Group Inc. increased its stake by 117.8%, holding 629,075 shares worth about $8 million. Currently, institutional investors own 62.61% of Arrowhead’s stock.
Overview of Arrowhead Pharmaceuticals
Arrowhead Pharmaceuticals, based in the United States, is focused on developing innovative treatments for challenging diseases. The company’s pipeline includes several promising candidates. Among them is Plozasiran, currently in Phase 2b and Phase 3 clinical trials targeting hypertriglyceridemia, mixed dyslipidemia, and chylomicronemia syndrome. Other significant candidates include Zodasiran, also in Phase 2b trials for dyslipidemia and hypertriglyceridemia, and ARO-PNPLA3, which is in Phase 1 trials for non-alcoholic steatohepatitis. Additionally, ARO-RAGE is in Phase 1/2a trials for inflammatory pulmonary conditions, while ARO-MUC5AC is being tested for muco-obstructive pulmonary diseases.
As Arrowhead Pharmaceuticals continues to evolve, the recent endorsements from analysts and significant institutional investments signal a positive trajectory for the company in the competitive biotechnology sector.
