Zosano Pharma Corporation (ZSAN): Why I’m Not Investing In This Stock Today

Zosano Pharma Corporation (NASDAQ:ZSAN) is one of the hottest stocks trading today on the U.S. Markets as the company shares are 3.83% or 0.11 points lower from last closing price of $2.87, reaching $2.76 at last check. Any clue why there is so much of action in the ZSAN stock? The share price has dropped in 3 of the last 5 days and is down -45.23% over the past week. It will be exciting to see whether the stock manages to continue decreasing or take a minor break for the next few days. The move came on weak volume too with far less shares changing hands than in a normal session. Trading activity as of this writing weakened by -109,153 shares, and in total 113147 shares valued at $312286 were seen changing hands compared with 222300 shares valued at $638001 recorded at the previous session. You should take into consideration that a falling volume on lower prices shows the bearish trend but this is an early indication which means that the ZSAN stock is near its bottom.

Zosano Pharma Corporation (ZSAN) shares have notched a 3-month decline of about -45.23%, but has still advanced 35.38% year to date. By comparison, the stock sank -36.64% over the past 12 months, while it slipped -18.93% over the 1 month. The company’s market cap is around $49.91M, with its short interest ratio standing at 2.14%.

In the current trading session for ZSAN, the stock witnessed two major price actions, it rose to a high of $2.85 and was down as much as $2.71 at one point. The high recorded is very low when compared to their 52-week high which is $1.85. The 52-week high is now at -58.8 distance from current price. Their recent low of $6.65 represents a 48.11% recovery. This data is quite important for investors who look to benefit from the recent rise of the company’s stock. The price target currently for ZSAN is $13, this is above the recent high that the stock attained. Taking a look at the overall sentimental views of financial analysts, the trading pattern of this stock recently is very clear.

The company recorded an interesting insider purchase transaction by the CEO on Apr 11, 2019. A Securities and Exchanges Commission filings show that John Peter Walker bought a total of 100,000 ZSAN shares that day for a sum of around $350,000. The filings show that the insider stake has now grown to 280,228 shares, currently worth $773,429. Zosano Pharma Corporation (ZSAN) insiders have acquired 528,571 shares in the stock within the past three months. The total insider sales reported to the SEC in that time frame amounted to shares. In total, individual insiders traded 528,571 shares in the business, which makes up 100% of 528,571 shares that were traded over a year. In the past 12 months, insiders have purchased 528,571 shares while the seller parted with shares.

ZSAN‘s last price was down -24.03% as compared to the average trading price of 50 days recorded at $3.63 while enlarging the period to 200 trading days, the average closing price was $3.54. At present, there are 17.39 million in the total number of common shares owned by the public and among those 17.39 million shares have been available to trade. The percentage of shares being held by the company management was 1.6% while institutions stake was 31.4%. The company has generated negative returns on equity over the last 12 months (-157.4%). It managed to keep its gross profit margin at 0% over the past 12 months.

When assessing the full upside of the ZSAN stock, there is another set of technicals that should be looked into and considered. Its -6.04% decline from moving average of $2.94 has brought about a negative sentiment when calculated over the last 20 days. The market has allocated a beta of 2.56 to the stock. With the beta been greater than one, this implies that the company shares are theoretically more volatile than the market, something that the traders definitely are keeping an eye on.

Most of the analysts surveyed by Thomson/First Call think quite highly of Zosano Pharma Corporation — 3 analysts rate the stock as a buy with another 0 rating it strong buy. There are 0 analysts who maintain a hold rating for the stock, with 0 giving it a sell rating. Analysts arrived at a 12-month price target of $10.22 on shares of Zosano Pharma Corporation (NASDAQ:ZSAN), which corresponds to 277.12% upside potential than its current market price of $2.76 and implies potential despite the recent drop in the price. However, their current target price has fallen from $10.22 a month ago and is down handily from the consensus target of $19 a quarter ago.

In the last five years, the EPS of the company has been roughly 19.2%. Though the percentage looks encouraging, extra headwinds are emerging as looking out over a next 5-year period, with analysts estimating that their earnings will decrease annually by 0%. The revenue of the company has retreated at an average annualized rate of about 0 over the last five years. The company recently recorded a drop of 0%, but this figure is rather unattractive.

Let’s briefly check the hedge fund interest towards ZSAN stock. Morgan Stanley added position in the company after it grew 21.6% or 221,021 shares of its common stock. The hedge fund now owns 268,761 shares worth $741,780, SEC documents show. MYDA Advisors LLC shored up assets in the stock as 48000 shares have been purchased, increasing its stake by 50% to 72,000 shares which are currently valued at $198,720. In addition, Northern Trust Corp recently reported that it now owns 16,252 shares making a total of $44,856 based on the recent price. This refelects a change of -252.3% in their ownership.