Stocks

What's Next For Sarepta Stock After A 12% Fall?

The stock price of Sarepta Therapeutics (NASDAQ:SRPT), a biotech company focused on the discovery and development of RNA-targeted therapeutics and gene therapy for the treatment of rare diseases, plunged 12% yesterday, while it is down 14% in the last five trading days. In comparison, the broader S&P500 index hasn’t seen any change over the same period. Sarepta saw its stock fall after releasing preliminary Q3 results with revenues expected to be $167 million and a cash balance of $1.6 billion. The revenue figure is just short of the nearly $168 million consensus estimate, while its cash balance compares with $1.7 billion at the end of Q2 this year. Our Sarepta Revenues dashboard offers more details. Furthermore, the company also announced a $500 million stock offering to support its clinical trials and other business activities. The recent developments didn’t sit well with the investors, resulting in a sharp decline in its stock.  While the preliminary results are lower than the street estimates, they are short just less than 1% when it comes to revenues. That said, the amount of drop seems to already take the  earnings miss as well as the offering into account.

Now, is SRPT stock poised to grow? Based on our machine learning analysis of trends in the stock price over the last ten years, there is a higher chance of a rise in SRPT stock in the near term. See our analysis on Sarepta Therapeutics Stock Return for more details.

5D: SRPT -14%, vs. S&P500 -0.03%; Underperformed market

(5% likelihood event; 56% probability of rise over next 5 days)

  • Sarepta Therapeutics stock declined 14% over the last five trading days (one week), compared to broader market (S&P500) decline of 0.03%
  • A change of -14% or more over five trading days (one week) is a 5% likelihood event, which has occurred 134 times out of 2516 in the last 10 years
  • Of these 134 instances, the stock has seen a positive movement over the next five trading days on 75 occasions
  • This points to a 56% probability for the stock rising over the next five trading days

21D: SRPT 3.7%, vs. S&P500 -2%; Outperformed market

(48% likelihood event; 58% probability of rise over next 21 days)

  • Sarepta Therapeutics stock rose 3.7% the last twenty-one trading days (one month), compared to broader market (S&P500) decline of 2.0%
  • A change of 3.7% or more over twenty-one trading days is a 48% likelihood event, which has occurred 1211 times out of 2516 in the last 10 years
  • Of these 1211 instances, the stock has seen a positive movement over the next twenty-one trading days on 699 occasions
  • This points to a 58% probability for the stock rising over the next twenty-one trading days
 Johnson & Johnson vs. Regeneron Pharmaceuticals.

What if you’re looking for a more balanced portfolio instead? Here’s a high-quality portfolio that’s beaten the market consistently since 2016.

Trefis  Market-Beating Portfolios Trefis  Price Estimates

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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