2022 EPS estimates for drug development and collaborative therapeutics company, Provention Bio
A biotech stock represents a share of a company that operates in the biotech industry. Through advanced medical technology and innovative technologies, these firms develop new medicines, vaccines, and medical devices. In addition to treating common conditions such as cancer, heart disease, and many other diseases, these companies are working to seek a cure for some of the world's most debilitating illnesses.
The biotechnology industry has enabled countless patients to extend and improve their quality of life in the past few decades. On the investor's side, investing in these kinds of companies that make novel medicines and treatments has also resulted in significant growth in revenue, profits, and investor interest.
But like any other investment, investing in biotechnology has its risks. The companies' experimental treatments may prove ineffective or worse in clinical trials. This makes investing in biotech shares risky.
In a research report on April 28th, analysts at Cantor Fitzgerald revised their FY2022 earnings per share estimates for Provention Bio.
Provention Bio FY2022
On February 24th, Provention Bio posted its quarterly earnings data. Revenue for the quarter was $0.72 million, while analysts expected $0.71 million. During the quarter, the company generated ($0.41) earnings per share, which are higher than the Thomson Reuters' consensus estimate of ($0.44) by $0.03. Provention Bio generated ($0.58) EPS during the same quarter last year.
On Monday, shares of NASDAQ: PRVB opened at $4.49. The stock has a market cap of $284.66 million, a PE ratio of -2.47, and a beta of 2.60. The stock has traded as low as $3.40 and as high as $11.49 during the past 52 weeks.
The stock has also been discussed recently by other analysts. As reported by Zacks Investment Research on April 27th, the research firm downgraded Provention Bio from a "hold" rating to a "sell." HC Wainwright reiterated a "buy" rating and set a $25.00 target price on Provention Bio's stock. The stock has been rated as a sell by one analyst, a hold by one, and a buy by seven other analysts. The consensus rating for Provention Bio at MarketBeat.com is "Buy" with a consensus target price of $16.18.
Value in biotech stocks
Provention Bio, Inc. researches and develops biopharmaceuticals to prevent and treat immune-mediated diseases. It seeks to in-license, transform, and develop clinical-stage or nearly clinical-stage therapeutic candidates that target autoimmune and inflammatory diseases. The firm aims to boost the development and research of diseases with high mortality, morbidity, and rising costs.
People can make a lot of money investing in biotechnology. Companies like Prevention Bio might be able to improve both financial and medical health if a person invests in their stocks. Stock prices can soar in multiples following the launch of a new treatment option. There's no doubt that biotechnology is one industry that produces millionaires, but it's good to note that, like any other investment, it has its own risk.
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