Amarin Corporation plc (AMRN) Running Into Trouble Today

Amarin Corporation plc (NASDAQ:AMRN) is in the list of top stocks to avoid today as the company shares are trading 4.39% or 0.83 points down from last closing price of $18.9, reaching $18.07 at last check. The AMRN share price has dropped in 5 of the last 5 days and is up 7.02% 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 solid volume too with far more shares changing hands than in a normal session. Trading activity as of this writing strengthened by 259,469 shares, and in total 25.862 million shares valued at $467.324 million were seen changing hands compared with 25.602 million shares valued at $483.885 million recorded at the previous session. You should take into consideration that a greater volume on lower prices causes the situation where nobody wants to continue with their long position and wants to exit from the AMRN stock.

Amarin Corporation plc (AMRN) shares have notched a 3-month gain of about 7.02%, but has still advanced 38.87% year to date. By comparison, the stock added 537.44% over the past 12 months, while it slipped -2.58% over the 1 month. The company’s market cap is around $6.11B, with its short interest ratio standing at 3.53%.

In the current trading session for AMRN, the stock witnessed two major price actions, it rose to a high of $18.83 and was down as much as $17.95 at one point. The high recorded is very low when compared to their 52-week high which is $2.35. The 52-week high is now at -24.61 distance from current price. Their recent low of $23.91 represents a 667.04% 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 AMRN is $32.83, 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 stock of Amarin Corporation plc earned $-0.38 per share in the trailing 12 months and has a P/E ratio of -47.55. You can compare it with that of similar companies in its industry to get a sense of whether the stock you’re looking to purchase is overvalued or undervalued. Its current price to earnings ratio is lower than the ones recorded by the industry which is 69.41 and lower compared to the sector’s average of 32.66. When the P/E ratio is low let’s say below 1.0, then the stock price is considered a good value. AMRN also has P/S multiple of 22.57. This is smaller versus the 12 month P/S ratios of other companies in the same indutry. The peer average price to sales ratio is 49.48x.

The company recorded an interesting insider sale transaction by the Director on Jul 11, 2019. A Securities and Exchanges Commission filings show that David M Stack sold a total of 51,991 AMRN shares that day for a sum of around $1,158,359. Amarin Corporation plc (AMRN) insiders have acquired no shares in the stock within the past three months. In total, individual insiders traded 733,216 shares in the business, which makes up 6.949% of 10,552,059 shares that were traded over a year. In the past 12 months, insiders have purchased 1,664,250 shares while the seller parted with 8,887,809 shares.

AMRN‘s last price was down -2.17% as compared to the average trading price of 50 days recorded at $18.47 while enlarging the period to 200 trading days, the average closing price was $18.99. At present, there are 323.04 million in the total number of common shares owned by the public and among those 149.62 million shares have been available to trade. The percentage of shares being held by the company management was 0.8% while institutions stake was 48.8%. The company has generated negative returns on equity over the last 12 months (-450.1%). It managed to keep its gross profit margin at 76.4% over the past 12 months.

When assessing the full upside of the AMRN stock, there is another set of technicals that should be looked into and considered. Its -12.98% decline from moving average of $20.77 has brought about a negative sentiment when calculated over the last 20 days. The market has allocated a beta of 1.17 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 Amarin Corporation plc — 6 analysts rate the stock as a buy with another 0 rating it strong buy. There are 1 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 $32 on shares of Amarin Corporation plc (NASDAQ:AMRN), which corresponds to 77.19% upside potential than its current market price of $18.07 and implies potential despite the recent drop in the price. However, their current target price has fallen from $32 a month ago and is down handily from the consensus target of $32.1667 a quarter ago.

In the last five years, the EPS of the company has been roughly 17.6%. Though the percentage looks encouraging, extra tailwinds are emerging as looking out over a next 5-year period, with analysts estimating that their earnings will increase annually by 19.9%. The revenue of the company has risen at an average annualized rate of about 54.1 over the last five years. The company recently recorded an increase of 67%, but this figure is rather attractive.

Let’s briefly check the hedge fund interest towards AMRN stock. Commonwealth Equity Services LLC added position in the company after it grew 7.9% or 59,967 shares of its common stock. The hedge fund now owns 64,704 shares worth $1,169,201, SEC documents show. NEXT Financial Group Inc shored up assets in the stock as 5499.58 shares have been purchased, increasing its stake by 19.1% to 6,550 shares which are currently valued at $118,359. In addition, Ogorek Anthony Joseph NY ADV recently reported that it now owns 17,800 shares making a total of $321,646 based on the recent price. This refelects a change of 45.3% in their ownership.