Satsuma Pharmaceuticals Inc. [NASDAQ: STSA] closed the trading session at $6.96 on 03/03/21. The day’s price range saw the stock hit a low of $6.56, while the highest price level was $7.00. The company report on March 1, 2021 that Satsuma Pharmaceuticals Announces $80 Million Private Placement Financing.
Satsuma Pharmaceuticals, Inc. (Nasdaq: STSA) a clinical-stage biopharmaceutical company, announced that it has agreed to sell 14,084,507 shares of its common stock to certain institutional investors in a private investment in public equity (PIPE) financing. The Company anticipates gross proceeds from the PIPE will be approximately $80 million, before deducting fees to the placement agents and other estimated offering expense payable by the Company, based on the offering price of $5.68 per share, the last reported sale price of our common stock on The Nasdaq Global Market on February 26, 2021. The financing was led by Commodore Capital and New Enterprise Associates, L.P. with participation from new and existing investors including RA Capital Management, Vivo Capital, Samlyn Capital, Surveyor Capital (a Citadel company), Aspire Capital Fund, funds managed by Ghost Tree Capital Group, LP, Point72 Asset Management and Logos Capital as well as Satsuma co-founder, Shin Nippon Biomedical Laboratories, Ltd.
The financing is subject to standard closing conditions and the Company anticipates the closing to occur on March 3, 2021. In addition the financing was executed in compliance with applicable Nasdaq rules and priced at the “Minimum Price” (as defined in the Nasdaq rules).
The stocks have a year to date performance of 50.98 percent and weekly performance of 12.26 percent. The stock has been moved at -69.78 percent over the last six months. The stock has performed 16.78 percent around the most recent 30 days and changed 54.67 percent over the most recent 3-months.
If compared to the average trading volume of 490.37K shares, STSA reached to a volume of 1056727 in the most recent trading day, which is why market watchdogs consider the stock to be active.
Here’s what leading stock market gurus have to say about Satsuma Pharmaceuticals Inc. [STSA]:
Based on careful and fact-backed analyses by Wall Street experts, the current consensus on the target price for STSA shares is $4.50 per share. Analysis on target price and performance of stocks is usually carefully studied by market experts, and the current Wall Street consensus on STSA stock is a recommendation set at 2.80. 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.
Credit Suisse have made an estimate for Satsuma Pharmaceuticals Inc. shares, keeping their opinion on the stock as Neutral, with their previous recommendation back on March 02, 2021. The new note on the price target was released on September 11, 2020, representing the official price target for Satsuma Pharmaceuticals Inc. stock. Previously, the target price had yet another drop from $32 to $4, while Mizuho kept a Neutral rating on STSA stock. On September 11, 2020, analysts decreased their price target for STSA shares from 33 to 4.
The Average True Range (ATR) for Satsuma Pharmaceuticals Inc. is set at 0.60 The Price to Book ratio for the last quarter was 1.46, with the Price to Cash per share for the same quarter was set at 4.51.
STSA stock trade performance evaluation
Satsuma Pharmaceuticals Inc. [STSA] gain into the green zone at the end of the last week, gaining into a positive trend and gaining by 12.26. With this latest performance, STSA shares gained by 16.78% in over the last four-week period, additionally sinking by -69.78% over the last 6 months – not to mention a drop of -73.71% 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 STSA stock in for the last two-week period is set at 59.54, with the RSI for the last a single of trading hit 61.09, and the three-weeks RSI is set at 58.80 for Satsuma Pharmaceuticals Inc. [STSA]. The present Moving Average for the last 50 days of trading for this stock 5.78, while it was recorded at 6.27 for the last single week of trading, and 13.34 for the last 200 days.
Satsuma Pharmaceuticals Inc. [STSA]: An insightful look at the core fundamentals
Return on Total Capital for STSA is now -46.30, given the latest momentum, and Return on Invested Capital for the company is -45.95. Return on Equity for this stock declined to -54.60, with Return on Assets sitting at -42.48. When it comes to the capital structure of this company, Satsuma Pharmaceuticals Inc. [STSA] has a Total Debt to Total Equity ratio set at 4.27. Additionally, STSA Total Debt to Total Capital is recorded at 4.10, with Total Debt to Total Assets ending up at 3.90. Long-Term Debt to Equity for the company is recorded at 2.56, with the Long-Term Debt to Total Capital now at 2.45.
Reflecting on the efficiency of the workforce at the company, Satsuma Pharmaceuticals Inc. [STSA] managed to generate an average of -$1,657,353 per employee.Satsuma Pharmaceuticals Inc.’s liquidity data is similarly interesting compelling, with a Quick Ratio of 11.70 and a Current Ratio set at 11.70.
Earnings per share (EPS) analysis for Satsuma Pharmaceuticals Inc. [STSA] stock
With the latest financial reports released by the company, Satsuma Pharmaceuticals Inc. posted -0.62/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 surpassed the estimates by a Surprise Factor of 22.50%. 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 STSA.
Satsuma Pharmaceuticals Inc. [STSA]: Insider Ownership positions
There are presently around $66 million, or 61.40% of STSA stock, in the hands of institutional investors. The top three institutional holders of STSA stocks are: RA CAPITAL MANAGEMENT, L.P. with ownership of 4,681,858, which is approximately 0% of the company’s market cap and around 0.10% of the total institutional ownership; TPG GROUP HOLDINGS (SBS) ADVISORS, INC., holding 1,885,939 shares of the stock with an approximate value of $11.79 million in STSA stocks shares; and MORGAN STANLEY, currently with $6.21 million in STSA stock with ownership of nearly 303.362% of the company’s market capitalization.
Positions in Satsuma Pharmaceuticals Inc. stocks held by institutional investors increased at the end of March and at the time of the March reporting period, where 26 institutional holders increased their position in Satsuma Pharmaceuticals Inc. [NASDAQ:STSA] by around 1,428,168 shares. Additionally, 24 investors decreased positions by around 619,785 shares, while 8 investors held positions by with 8,568,679 shares. The mentioned changes placed institutional holdings at 10,616,632 shares, according to the latest SEC report filing. STSA stock had 13 new institutional investments in for a total of 433,849 shares, while 9 institutional investors sold positions of 232,802 shares during the same period.