why SpringWorks Therapeutics Inc. [SWTX] is a Good Choice for Investors After New Price Target of $54.40

SpringWorks Therapeutics Inc. [NASDAQ: SWTX] price surged by 9.64 percent to reach at $5.01. The company report on October 8, 2020 that SpringWorks Therapeutics Announces Pricing of Public Offering of Common Stock.

SpringWorks Therapeutics, Inc. (Nasdaq: SWTX), a clinical-stage biopharmaceutical company focused on developing life-changing medicines for patients with severe rare diseases and cancer, announced today the pricing of an underwritten public offering of 4,901,960 shares of its common stock at a public offering price of $51.00 per share, before underwriting discounts and commissions. All of the shares in the offering are being sold by SpringWorks. In addition, SpringWorks has granted the underwriters a 30-day option to purchase up to an additional 735,294 shares of its common stock at the public offering price, less underwriting discounts and commissions. The gross proceeds from the offering, before deducting underwriting discounts and commissions and estimated offering expenses, are expected to be approximately $250 million, excluding any exercise of the underwriters’ option to purchase additional shares. The offering is expected to close on or about October 13, 2020, subject to the satisfaction of customary closing conditions.

J.P. Morgan Securities LLC, Goldman Sachs & Co. LLC and Cowen and Company, LLC are acting as joint book-running managers for the offering. Wedbush Securities Inc. is acting as co-manager for the offering.

A sum of 1306489 shares traded at recent session while its average daily volume was at 258.88K shares. SpringWorks Therapeutics Inc. shares reached a high of $57.92 and dropped to a low of $52.79 until finishing in the latest session at $56.99.

The one-year SWTX stock forecast points to a potential downside of -4.76. The average equity rating for SWTX stock is currently 2.00, trading closer to a bullish pattern in the stock market.

Guru’s Opinion on SpringWorks Therapeutics Inc. [SWTX]:

Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for SWTX shares is $54.40 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on SWTX stock is a recommendation set at 2.00. This rating represents a strong Buy recommendation, on the scale from 1 to 5, where 5 would mean strong sell, 4 represents Sell, 3 is Hold, and 2 indicates Buy.

Barclays have made an estimate for SpringWorks Therapeutics Inc. shares, keeping their opinion on the stock as Overweight, with their previous recommendation back on May 05, 2020. While these analysts kept the previous recommendation, H.C. Wainwright raised their target price from $40 to $60. The new note on the price target was released on March 19, 2020, representing the official price target for SpringWorks Therapeutics Inc. stock. Previously, the target price had yet another raise to $40, while H.C. Wainwright analysts kept a Neutral rating on SWTX stock. On January 21, 2020, analysts increased their price target for SWTX shares from 34 to 40.

The Average True Range (ATR) for SpringWorks Therapeutics Inc. is set at 4.08 The Price to Book ratio for the last quarter was 8.22, with the Price to Cash per share for the same quarter was set at 7.43.

SWTX Stock Performance Analysis:

SpringWorks Therapeutics Inc. [SWTX] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 17.85. With this latest performance, SWTX shares gained by 48.06% in over the last four-week period, additionally plugging by 103.97% over the last 6 months – not to mention a rise of 204.11% in the past year of trading.

Overbought and oversold stocks can be easily traced with the Relative Strength Index (RSI), where an RSI result of over 70 would be overbought, and any rate below 30 would indicate oversold conditions. An RSI rate of 50 would represent a neutral market momentum. The current RSI for SWTX stock in for the last two-week period is set at 72.44, with the RSI for the last a single of trading hit 79.01, and the three-weeks RSI is set at 67.56 for SpringWorks Therapeutics Inc. [SWTX]. The present Moving Average for the last 50 days of trading for this stock 45.35, while it was recorded at 52.56 for the last single week of trading, and 37.51 for the last 200 days.

Insight into SpringWorks Therapeutics Inc. Fundamentals:

Return on Total Capital for SWTX is now -32.40, given the latest momentum, and Return on Invested Capital for the company is -31.89. Return on Equity for this stock declined to -31.89, with Return on Assets sitting at -30.43.

Reflecting on the efficiency of the workforce at the company, SpringWorks Therapeutics Inc. [SWTX] managed to generate an average of -$1,041,179 per employee.SpringWorks Therapeutics Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 30.80 and a Current Ratio set at 30.80.

SWTX Stock EPS

With the latest financial reports released by the company, SpringWorks Therapeutics Inc. posted -1.77/share EPS, while the average EPS was predicted by analysts to be reported at -0.47/share. When compared, the two values demonstrate that the company fail the estimates by a Surprise Factor of -276.60%. The progress of the company may be observed through the prism of EPS growth rate, while Wall Street analysts are focusing on predicting the 5-year EPS growth rate for SWTX.

SpringWorks Therapeutics Inc. [SWTX] Insider Position Details

There are presently around $1,985 million, or 81.80% of SWTX stock, in the hands of institutional investors. The top three institutional holders of SWTX stocks are: ORBIMED ADVISORS LLC with ownership of 7,406,307, which is approximately 0% of the company’s market cap and around 15.58% of the total institutional ownership; BAIN CAPITAL LIFE SCIENCES INVESTORS, LLC, holding 7,281,307 shares of the stock with an approximate value of $414.96 million in SWTX stocks shares; and PERCEPTIVE ADVISORS LLC, currently with $200.28 million in SWTX stock with ownership of nearly 0.861% of the company’s market capitalization.

Positions in SpringWorks Therapeutics Inc. stocks held by institutional investors increased at the end of August and at the time of the August reporting period, where 58 institutional holders increased their position in SpringWorks Therapeutics Inc. [NASDAQ:SWTX] by around 3,746,051 shares. Additionally, 20 investors decreased positions by around 1,857,672 shares, while 7 investors held positions by with 29,228,927 shares. The mentioned changes placed institutional holdings at 34,832,650 shares, according to the latest SEC report filing. SWTX stock had 18 new institutional investments in for a total of 887,103 shares, while 7 institutional investors sold positions of 510,429 shares during the same period.

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