Time to Buy Depomed Inc After Today’s Option Traders Bet?

 Time to Buy Depomed Inc After Today's Option Traders Bet?

In today’s session Depomed Inc (DEPO) registered an unusually high (1,582) contracts volume of call trades. Someone, most probably a professional was a very active buyer of the November, 2016 call, expecting serious DEPO increase. With 1,582 contracts traded and 2384 open interest for the Nov, 16 contract, it seems this is a quite bullish bet. The option with symbol: DEPO161118C00024000 closed last at: $1.3 or 52.9% up. About 409,086 shares traded hands. Depomed Inc (NASDAQ:DEPO) has risen 51.63% since April 4, 2016 and is uptrending. It has outperformed by 50.54% the S&P500.

Analysts await Depomed Inc (NASDAQ:DEPO) to report earnings on November, 14. They expect $-0.01 earnings per share, down 103.70% or $0.28 from last year’s $0.27 per share. After $-0.17 actual earnings per share reported by Depomed Inc for the previous quarter, Wall Street now forecasts -94.12% EPS growth.

Depomed Inc (NASDAQ:DEPO) Ratings Coverage

Out of 14 analysts covering Depomed Inc (NASDAQ:DEPO), 7 rate it a “Buy”, 0 “Sell”, while 7 “Hold”. This means 50% are positive. $33 is the highest target while $16 is the lowest. The $24.50 average target is 12.23% above today’s ($21.83) stock price. Depomed Inc has been the topic of 26 analyst reports since July 30, 2015 according to StockzIntelligence Inc. As per Wednesday, July 27, the company rating was downgraded by PiperJaffray. The stock of Depomed Inc (NASDAQ:DEPO) earned “Buy” rating by Mizuho on Monday, September 19. The firm has “Buy” rating by WallachBeth Capital given on Wednesday, November 11. The stock of Depomed Inc (NASDAQ:DEPO) has “Outperform” rating given on Thursday, March 10 by Leerink Swann. The stock of Depomed Inc (NASDAQ:DEPO) has “Outperform” rating given on Thursday, March 24 by Northland Capital. Mizuho maintained it with “Buy” rating and $23 target price in Friday, May 27 report. UBS initiated it with “Buy” rating and $22 target price in Tuesday, February 9 report. The firm has “Neutral” rating by Mizuho given on Tuesday, October 4. The stock has “Buy” rating given by Mizuho on Thursday, February 25. The company was maintained on Tuesday, September 1 by Roth Capital.

According to Zacks Investment Research, “Depomed, Inc. is a specialty pharmaceutical company utilizing its innovative AcuForm drug delivery technology to develop novel oral products and improved, extended release formulations of existing oral drugs. AcuForm-based products are designed to provide once- daily administration and reduced side effects, improving patient convenience, compliance and pharmacokinetic profiles. ProQuin XR extended-release tablets have been approved by the FDA for the once-daily treatment of uncomplicated urinary tract infections and are currently being marketed in the United States. In addition, once-daily Glumetza has been approved for use in adults with type two diabetes and is currently being marketed in the United States and Canada. The company is currently evaluating Gabapentin GR for the treatment of two pain indications, postherpetic neuralgia and diabetic peripheral neuropathy, and menopausal hot flashes.”

Insitutional Activity: The institutional sentiment increased to 1.24 in 2016 Q2. Its up 0.26, from 0.98 in 2016Q1. The ratio is positive, as 31 funds sold all Depomed Inc shares owned while 57 reduced positions. 42 funds bought stakes while 67 increased positions. They now own 61.91 million shares or 2.39% less from 63.42 million shares in 2016Q1.
Wellington Shields Capital Management Ltd Liability Co last reported 0.16% of its portfolio in the stock. Dimensional Fund Advisors Limited Partnership has 0.02% invested in the company for 1.65M shares. Mycio Wealth Ltd Liability Co reported 226 shares or 0% of all its holdings. Starboard Value Lp accumulated 4.18% or 6.02 million shares. The New York-based Paradigm Asset Mgmt Co Ltd Liability Com has invested 0% in Depomed Inc (NASDAQ:DEPO). D E Shaw holds 0% or 12,939 shares in its portfolio. Schwab Charles Inv Mngmt accumulated 647,478 shares or 0.02% of the stock. Moreover, Goldman Sachs Gp has 0% invested in Depomed Inc (NASDAQ:DEPO) for 162,112 shares. Sei Investments Com holds 0% of its portfolio in Depomed Inc (NASDAQ:DEPO) for 30,863 shares. Barclays Public Limited holds 0% or 588 shares in its portfolio. Oak Ridge Invests Limited Liability Company reported 3.39M shares or 1.71% of all its holdings. Perkins Capital Management holds 30,000 shares or 0.68% of its portfolio. Cim Investment Mangement reported 14,819 shares or 0.12% of all its holdings. Blackrock Incorporated holds 0% or 5,137 shares in its portfolio. Ubs Asset Management Americas has 0% invested in the company for 31,896 shares.

Insider Transactions: Since May 9, 2016, the stock had 0 buys, and 6 sales for $1.59 million net activity. 15,000 shares with value of $300,000 were sold by Vargas Thadd M on Monday, May 23. Moretti August J sold $107,000 worth of stock or 5,000 shares.

Depomed, Inc. is a specialty pharmaceutical firm focused on pain and other central nervous system conditions. The company has a market cap of $1.34 billion.

DEPO Company Profile

Depomed, Inc., incorporated on August 7, 1995, is a specialty pharmaceutical firm focused on pain and other central nervous system (CNS) conditions. The Company’s products include The NUCYNTA franchise of pain products, including NUCYNTA ER (tapentadol extended release tablets) and NUCYNTA (tapentadol); Gralise (gabapentin); CAMBIA (diclofenac potassium for oral solution); Lazanda (fentanyl) nasal spray, and Zipsor (diclofenac potassium).

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