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Why Have Phathom Pharmaceuticals Inc. (NASDAQ: PHAT) Shares Declined So Much?

Phathom Pharmaceuticals Inc. (NASDAQ:PHAT) price closed lower on Friday, September 15, dropping -2.75% below its previous close.

A look at the daily price movement shows that the last close reads $13.47, with intraday deals fluctuated between $12.86 and $13.935. The company’s 5Y monthly beta was ticking 0.45. Taking into account the 52-week price action we note that the stock hit a 52-week high of $17.02 and 52-week low of $5.84. The stock subtracted -12.67% on its value in the past month.

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Phathom Pharmaceuticals Inc., which has a market valuation of $765.04 million, is expected to release its quarterly earnings report Nov 06, 2023 – Nov 10, 2023. Analysts tracking PHAT have forecast the quarterly EPS to shrink by -0.89 per share this quarter, while the same analysts predict the annual EPS to hit -$3.8 for the year 2023 and up to -$4.9 for 2024. In this case, analysts estimate an annual EPS growth of 24.80% for the year and -28.90% for the next year.

Staying with the analyst view, there is a consensus estimate of $1.44 million for the company’s annual revenue in 2023.

Revisions to the company’s EPS highlights a short term direction of a stock’s price movement, which in the last 7 days came up with no upward and no downward reviews. On the technical perspective front, indicators give PHAT a short term outlook of Hold on average. Looking at the stock’s medium term indicators we note that it is averaging as a 50% Buy, while an average of long term indicators are currently assigning the stock as 50% Buy.

Here is a look at the average analyst rating for the stock as represented on a scale of 1.00 to 5.00, with the extremes of 1.00 and 5.00 suggesting the stock is strong buy or strong sell respectively. Specifically, 7 analysts have assigned PHAT a recommendation rating as follows: 1 rate it as a Hold; 6 advise Buy while 0 analyst(s) assign an Overweight rating. 0 analyst(s) have tagged the Phathom Pharmaceuticals Inc. (PHAT) stock as Underweight, with 0 recommending Sell. In general, analysts have rated the stock Buy, a scenario likely to bolster investors out for an opportunity to add to their holdings of the company’s shares.

The overview shows that PHAT’s price is at present -6.92% off the SMA20 and -8.65% from the SMA50. The Relative Strength Index (RSI) metric on the 14-day timeframe is pointing at 40.15, with weekly volatility standing at 6.82%. The indicator jumps to 5.43% when calculated based on the past 30 days. Phathom Pharmaceuticals Inc. (NASDAQ:PHAT)’s beta value is holding at 0.46, while the average true range (ATR) indicator is currently reading 0.78. Considering analysts have assigned the stock a price target range of $9.00-$28.00 as the low and high respectively, we find the trailing 12-month average consensus price target to be $21.86. Based on this estimate, we see that current price is roughly 31.3% off the estimated low and -113.74% off the forecast high. Investors will no doubt be excited to see the share price fall to $23.00, which is the median consensus price, and at that level PHAT would be -75.57% from current price.

Turning out attention to how the Phathom Pharmaceuticals Inc. stock has performed in comparison to its peers in the industry, here’s what we find: PHAT’s stock is -2.75% on the day and 41.32% in the past 12 months. Elsewhere in the market, the S&P 500 Index has stumbled -1.22% in last trading session, with the Dow Jones Industrial also saw a negative session on the day with -0.83%.

An analysis of the Phathom Pharmaceuticals Inc. (NASDAQ:PHAT) stock in terms of its daily trading volume indicates that the 3-month average is 298.67K. However, this figure increases on the past 10-day timeline to an average of 0.51 million.

Current records show that the company has 48.50M in outstanding shares. The insiders’ percentage holdings are 0.40% of outstanding shares while the percentage share held by institutions stands at 76.00%. The stats also highlight that short interest as of Aug 30, 2023, stood at 2.77 million shares, which puts the short ratio at the time at 8.85. From this we can glean that short interest is 4.87% of company’s current outstanding shares. Notably, we see that shares short in August fall slightly given the previous month’s figure stood at 3.19 million. But the 16.76% upside, the stock’s price has registered year-to-date as of last trading, will likely reignite investor interest given the prospect of it rallying even higher.