BofA Securities slashes price target on Aerie Pharmaceuticals Inc. [AERI] – find out why.

Aerie Pharmaceuticals Inc. [NASDAQ: AERI] traded at a low on 10/19/20, posting a -14.78 loss after which it closed the day’ session at $9.92. The company report on September 29, 2020 that Aerie Pharmaceuticals Announces Acceptance of Its Investigational New Drug Application for AR-15512 (TRPM8 Agonist) Eye Drop for Dry Eye Disease.

Aerie Pharmaceuticals, Inc. (NASDAQ: AERI), an ophthalmic pharmaceutical company focused on the discovery, development and commercialization of first-in-class therapies for the treatment of patients with open-angle glaucoma, ocular surface diseases and retinal diseases, today announced that the U.S. Food and Drug Administration (FDA) has reviewed the Investigational New Drug Application (IND) for AR-15512 (TRPM8 agonist) eye drop for dry eye and it is now in effect, allowing Aerie to initiate clinical studies in the treatment of dry eye. Aerie expects to initiate a Phase 2b clinical study in the fourth quarter of 2020.

AR-15512, formerly AVX-012, was acquired by Aerie in November 2019 in the acquisition of Avizorex Pharma, S.L., a Spanish ophthalmic pharmaceutical company developing therapeutics for the treatment of dry eye disease. The active ingredient in AR-15512 is a potent and selective agonist of the TRPM8 cold thermoreceptor ion channel that regulates tear production and blink rate. By stimulating these processes, TRPM8 agonists have the potential to restore tear film volume and reduce ocular discomfort in patients with dry eye. Avizorex completed a Phase 2a study in dry eye subjects in 2019 where positive results support the therapeutic potential to treat signs and symptoms of dry eye.

The results of the trading session contributed to over 2272296 shares changing hands. Over the past one week, the price volatility of Aerie Pharmaceuticals Inc. stands at 5.10% while the volatility over the past one month is 5.47%.

The market cap for AERI stock reached $455.53 million, with 45.88 million shares outstanding and 45.52 million shares in the current float. Compared to the average trading volume of 672.23K shares, AERI reached a trading volume of 2272296 in the most recent trading day, which is why market watchdogs consider the stock to be active.

What do top market gurus say about Aerie Pharmaceuticals Inc. [AERI]?

BofA Securities have made an estimate for Aerie Pharmaceuticals Inc. shares, keeping their opinion on the stock as Underperform, with their previous recommendation back on October 19, 2020. While these analysts kept the previous recommendation, Guggenheim raised their target price to Buy. The new note on the price target was released on September 08, 2020, representing the official price target for Aerie Pharmaceuticals Inc. stock. Previously, the target price had yet another drop from $32 to $26, while Needham kept a Buy rating on AERI stock. On June 01, 2020, analysts increased their price target for AERI shares from 22 to 24.

The Average True Range (ATR) for Aerie Pharmaceuticals Inc. is set at 0.67, with the Price to Sales ratio for AERI stock in the period of the last 12 months amounting to 5.58. The Price to Book ratio for the last quarter was 5.06, with the Price to Cash per share for the same quarter was set at 5.27.

How has AERI stock performed recently?

Aerie Pharmaceuticals Inc. [AERI] fell into the red zone at the end of the last week, falling into a negative trend and dropping by -13.81. With this latest performance, AERI shares dropped by -18.69% in over the last four-week period, additionally sinking by -28.27% over the last 6 months – not to mention a drop of -51.63% 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 AERI stock in for the last two-week period is set at 29.89, with the RSI for the last a single of trading hit 22.08, and the three-weeks RSI is set at 35.32 for Aerie Pharmaceuticals Inc. [AERI]. The present Moving Average for the last 50 days of trading for this stock 11.64, while it was recorded at 11.24 for the last single week of trading, and 14.96 for the last 200 days.

Aerie Pharmaceuticals Inc. [AERI]: Deeper insight into the fundamentals

Operating Margin for any stock indicates how profitable investing would be, and Aerie Pharmaceuticals Inc. [AERI] shares currently have an operating margin of -268.27 and a Gross Margin at +89.41. Aerie Pharmaceuticals Inc.’s Net Margin is presently recorded at -285.57.

Return on Total Capital for AERI is now -62.37, given the latest momentum, and Return on Invested Capital for the company is -67.03. Return on Equity for this stock declined to -101.12, with Return on Assets sitting at -54.11. When it comes to the capital structure of this company, Aerie Pharmaceuticals Inc. [AERI] has a Total Debt to Total Equity ratio set at 123.54. Additionally, AERI Total Debt to Total Capital is recorded at 55.27, with Total Debt to Total Assets ending up at 45.57. Long-Term Debt to Equity for the company is recorded at 120.25, with the Long-Term Debt to Total Capital now at 53.79.

Reflecting on the efficiency of the workforce at the company, Aerie Pharmaceuticals Inc. [AERI] managed to generate an average of -$525,213 per employee. Receivables Turnover for the company is 3.40 with a Total Asset Turnover recorded at a value of 0.19.Aerie Pharmaceuticals Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 3.50 and a Current Ratio set at 3.70.

Earnings analysis for Aerie Pharmaceuticals Inc. [AERI]

With the latest financial reports released by the company, Aerie Pharmaceuticals Inc. posted -0.86/share EPS, while the average EPS was predicted by analysts to be reported at -0.8/share. When compared, the two values demonstrate that the company fail the estimates by a Surprise Factor of -7.50%. 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 AERI.

Insider trade positions for Aerie Pharmaceuticals Inc. [AERI]

There are presently around $486 million, in the hands of institutional investors. The top three institutional holders of AERI stocks are: VANGUARD GROUP INC with ownership of 4,259,708, which is approximately -1.914% of the company’s market cap and around 1.60% of the total institutional ownership; BLACKROCK INC., holding 3,836,584 shares of the stock with an approximate value of $38.06 million in AERI stocks shares; and PARTNER FUND MANAGEMENT, L.P., currently with $22.56 million in AERI stock with ownership of nearly -10.049% of the company’s market capitalization.

Positions in Aerie Pharmaceuticals Inc. stocks held by institutional investors increased at the end of August and at the time of the August reporting period, where 85 institutional holders increased their position in Aerie Pharmaceuticals Inc. [NASDAQ:AERI] by around 9,589,888 shares. Additionally, 79 investors decreased positions by around 14,720,327 shares, while 21 investors held positions by with 24,644,863 shares. The mentioned changes placed institutional holdings at 48,955,078 shares, according to the latest SEC report filing. AERI stock had 26 new institutional investments in for a total of 3,707,408 shares, while 28 institutional investors sold positions of 2,665,760 shares during the same period.

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