Stock in Focus: Arrowhead Pharma (ARWR)

Company Profile:

Arrowhead Pharmaceuticals Inc is a biotechnology company. It is engaged in the development of medicine to treat diseases such as hepatitis B, and thrombosis with a genetic origin, primarily divided by the overproduction of one or more proteins. The company was formerly known as Arrowhead Research Corporation and changed its name to Arrowhead Pharmaceuticals, Inc. in April 2016. Arrowhead Pharmaceuticals, Inc. was incorporated in 1989 and is headquartered in Pasadena, California.

Recent News:

The company is making rapid progress in developing solutions to some of the rarest and most difficult-to-treat diseases around the world today. With more than $307 million in cash and investments, no debt, and a market cap of $3.28 billion, Arrowhead Pharmaceuticals’ enterprise value stands a little below $3 billion.

For the fiscal second quarter of 2020, the company reported revenue of 23,5 millon and net loss of 19.8 million. Following the recent earnings report, the consensus from ten analysts covering Arrowhead Pharmaceuticals is for revenues of US$105.2m in 2020, implying a stressful 24% decline in sales compared to the last 12 months.

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

ARWR’s strengths can be seen in its strong growth and robust profitability compared with its peers. Technical indicators signal the bullish signs, as there is a bullish crossover in Stochastic oscillator, MACD is trying to cross back up and the RSI stands at 49.50 with positive bias. We rate Arrowhead Pharma (ARWR) a STRONG BUY.