Market Runner: Is Selling 52-Week Stock Like Orexigen Therapeutics, Inc. a Winning Strategy?

Market Runner: Is Selling 52 Week Stock Like Orexigen Therapeutics, Inc. a Winning Strategy?

The stock of Orexigen Therapeutics, Inc. (NASDAQ:OREX) hit a new 52-week low and has $1.98 target or 12.00% below today’s $2.25 share price. The 7 months bearish chart indicates high risk for the $30.43M company. The 1-year low was reported on Nov, 1 by Barchart.com. If the $1.98 price target is reached, the company will be worth $3.65M less.
The 52-week low event is an important milestone for every stock because it shows very negative momentum and is time when sellers come in. During such technical setups, fundamental investors usually stay away and are careful buying the stock. About 124,558 shares traded hands or 8.16% up from the average. Orexigen Therapeutics, Inc. (NASDAQ:OREX) has declined 54.46% since March 30, 2016 and is downtrending. It has underperformed by 57.48% the S&P500.

Analysts await Orexigen Therapeutics, Inc. (NASDAQ:OREX) to report earnings on November, 3. They expect $-1.23 EPS, down 36.67% or $0.33 from last year’s $-0.9 per share. After $-1.73 actual EPS reported by Orexigen Therapeutics, Inc. for the previous quarter, Wall Street now forecasts -28.90% EPS growth.

Orexigen Therapeutics, Inc. (NASDAQ:OREX) Ratings Coverage

Out of 5 analysts covering Orexigen Therapeutics (NASDAQ:OREX), 2 rate it a “Buy”, 1 “Sell”, while 2 “Hold”. This means 40% are positive. Orexigen Therapeutics has been the topic of 12 analyst reports since August 5, 2015 according to StockzIntelligence Inc. The stock of Orexigen Therapeutics, Inc. (NASDAQ:OREX) has “Market Perform” rating given on Wednesday, March 16 by JMP Securities. The rating was maintained by RBC Capital Markets on Friday, November 6 with “Outperform”. The company was upgraded on Tuesday, September 15 by RBC Capital Markets. The rating was downgraded by Wells Fargo to “Market Perform” on Friday, December 4. As per Monday, August 10, the company rating was maintained by JP Morgan. The firm has “Underperform” rating by Bank of America given on Friday, December 11. The stock of Orexigen Therapeutics, Inc. (NASDAQ:OREX) has “Sell” rating given on Wednesday, August 5 by Zacks. On Tuesday, October 6 the stock rating was maintained by Piper Jaffray with “Overweight”. The stock has “Buy” rating given by Piper Jaffray on Saturday, August 8.

According to Zacks Investment Research, “OREXIGEN THERAPEUTICS, INC. is a biopharmaceutical company focused on the development of pharmaceutical product candidates for the treatment of central nervous system disorders, including obesity. The Company’s lead combination product candidates targeted for obesity are Contrave, which is in Phase III clinical trials, and Empatic, which is in the later stages of Phase II clinical development. Both product candidates are designed to take advantage of the Company’s understanding of how the brain appears to regulate appetite and energy expenditure, as well as the mechanisms that come into play to limit weight loss over time. Each product candidate is designed to act on a specific group of neurons in the central nervous system with the goal of achieving appetite suppression and sustained weight loss.”

Insitutional Activity: The institutional sentiment decreased to 0.27 in 2016 Q2. Its down 0.46, from 0.73 in 2016Q1. The ratio worsened, as 42 funds sold all Orexigen Therapeutics, Inc. shares owned while 28 reduced positions. 9 funds bought stakes while 10 increased positions. They now own 61.80 million shares or 34.69% less from 94.63 million shares in 2016Q1.
Millennium Mgmt Lc holds 654,000 shares or 0% of its portfolio. Schwab Charles Mngmt accumulated 32,750 shares or 0% of the stock. Blackrock Institutional Tru Na has invested 0% of its portfolio in Orexigen Therapeutics, Inc. (NASDAQ:OREX). Palo Alto Invsts Lc last reported 167,302 shares in the company. Proshare Advsrs Limited Liability Corporation holds 108,358 shares or 0% of its portfolio. Blackrock Advsrs Lc last reported 0% of its portfolio in the stock. Barclays Public Limited Company has 27,332 shares for 0% of their US portfolio. Tiverton Asset Ltd Liability Corporation accumulated 0.18% or 45,313 shares. Vanguard owns 4.31 million shares or 0% of their US portfolio. Sg Americas Limited Liability Corp, a New York-based fund reported 48,329 shares. Foresite Capital Ii Limited Liability Corporation reported 5.43 million shares or 1.6% of all its holdings. Ameriprise Fincl Inc last reported 0% of its portfolio in the stock. Janney Montgomery Scott Lc has 0% invested in the company for 50,565 shares. Moreover, Stifel Financial Corporation has 0% invested in Orexigen Therapeutics, Inc. (NASDAQ:OREX) for 30,100 shares. California Public Employees Retirement System accumulated 0% or 335,200 shares.

More news for Orexigen Therapeutics, Inc. (NASDAQ:OREX) were recently published by: Fool.com, which released: “Blame This for Orexigen Therapeutics, Inc.’s Mind-Numbingly Bad 2015” on January 08, 2016. Prnewswire.com‘s article titled: “Orexigen Therapeutics Announces Commercialization and Distributorship …” and published on August 01, 2016 is yet another important article.

OREX Company Profile

Orexigen Therapeutics, Inc., incorporated on September 12, 2002, is a biopharmaceutical company. The Firm is focused on the treatment of obesity. The Company’s product, Contrave, is approved in the United States by the United States Food and Drug Administration as an adjunct to a reduced-calorie diet and increased physical activity for chronic weight management in adults with an initial body mass index (BMI) of 30 kilograms per square meter or greater (obese) or 27 kilograms per square meter or greater (overweight) in the presence of a weight-related comorbid condition.

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