Amarin (NASDAQ:AMRN) stock rose 4.7% in pre-market trading today after the company reported its preliminary first-quarter financial results. In the first quarter, Amarin expects to report revenues of $150 million compared to analysts’ consensus estimate of about $130 million. The first-quarter revenue estimate mainly reflects Vascepa sales in the US.
On Monday, Amarin stock rose by 5.6% and closed at $6.39 with a market cap of $2.3 billion. The stock price has risen 33.7% in the trailing five-day period, while it has fallen 66.4% in the trailing 12-month period.
Currently, the stock is trading 75.5% below its 52-week high of $26.12 on December 16, 2019. Amarin stock is also trading 61.8% above its 52-week low of $3.95 on March 31, 2020. On a year-to-date basis, the stock has fallen 70.2% as of Monday.
Analysts’ recommendations for Amarin stock
Among the 12 analysts covering Amarin stock, seven recommend a “buy”—down from nine the previous month. Meanwhile, five analysts recommend a “hold”—up from two the previous month. Currently, none of the analysts recommend a “sell.” Analysts have an average target price of $16.36 on Amarin. The target price implies a return of 156% based on the closing price of $6.39 on Monday. The consensus target price for the stock has fallen from $28.45 in March—a fall of 42.5%.
After Amarin’s preliminary first-quarter results were announced, Cowen analyst Ken Cacciatore increased its target price on the stock from $8 to $10 and maintained an “outperform” rating. According to a report from TheFly, “The analyst believes its value ex-US remains underappreciated as he thinks the size of its EU opportunity could reach $1.5B-$2B and is protected to 2033.”
Jefferies analyst Michael Yee increased its target price on the stock from $6 to $7 and kept a “hold” rating. According to a report from TheFly, Yee “noted that Amarin reported strong Q1 results that handily beat consensus and was planning on raising 2020 guidance prior to COVID-19, which he said is evidence that Vascepa’s launch continues to be one of the best launches in biotech.”
Analysts’ earnings expectations
Amarin reported sales of $429.76 million in 2019—a rise of 87.5% YoY (year-over-year). The company reported an adjusted EPS of -$0.07 in 2019 compared to -$0.39 in 2018. Wall Street analysts expected the company to post sales of $422.46 million and earnings of -$0.10 in 2019.
Wall Street analysts expect Amarin to report sales of $135.43 million in the first quarter. The figure would mark an increase of 84.8% YoY compared to $73.28 million in the first quarter of 2019. Also, analysts expect the company to post an adjusted EPS of -$0.08 in the first quarter compared to -$0.07 in the first quarter of 2019. Currently, analysts expect a 55.6% and 40.5% rise in the company’s 2020 and 2021 revenues, respectively. Analysts also expect an adjusted EPS of -$0.10 and $0.52 in 2020 and 2021, respectively.
Amarin’s stock performance
On Monday, Amarin stock was trading 25.9% below its 20-day moving average of $8.62. Meanwhile, the stock is trading 51.6% below its 50-day moving average of $13.19 and 62.6% below its 100-day moving average of $17.09. Amarin’s 14-day RSI (relative strength index) score is 36.6. The RSI suggests that the stock is approaching the “oversold” zone.
Amarin has an upper Bollinger Band level of $15.56. The company’s middle Bollinger Band level is $8.78, while its lower Bollinger Band level is $2.01. On Monday, the stock closed near its middle Bollinger Band level, which suggests that it isn’t overbought or oversold. Amarin’s 14-day MACD is -1.18, which suggests that the stock is on a downward trading trend.
At 10:42 AM ET today, Amarin stock is trading at $6.62—up 3.5% from the previous session. At the same time, the S&P 500 and the Dow Jones Industrial Average rose by 2.5% and 2.3%, respectively. Read COVID-19 Impacts US Stock Markets and Economy and COVID-19: Have US Stock Markets Bottomed Out? to learn more.