Enzon Pharmaceuticals Inc (NASDAQ:ENZN) bounce back in the market seems to be going well after a poor start that saw it shed more than 30% in market value. The stock is currently trading at a range of $0.50 and $0.55 a share above its 52-week low of $0.398 a share.
$14 a Share Piece Target
The stock has a long way to go given that it is $-1.3789 off its one year high of $1.88 a share. With a put to call ratio of $1.05 the stock’s appears to be a cheap option compared to its peers. Its profitability metrics are also higher than the industry average making it an exciting pick at the current trading levels.
Enzon Pharmaceuticals Inc (NASDAQ:ENZN) operating margins currently stand at 68.9% with a profit margin of 72.8%, higher than the industry average. Last year the company generated earnings of $ 03380 a share. It now expects earnings per share of $0.0300 for the next quarter. Given the company’s strong profit margins, Thomson Reuters believes the stock could be worth $14 a share over the next 12 months.
Institutional Investors Stance
Amidst the bullish tone from Thompson Reuters, the stock is still on a downward trend having underperformed the S&P 500 by 54.2%. Short positions on the stock have also increased by 5.4% over the past one-month to 507,700 shares from 481,700 shares.
Institutional sentiment on the stock is also down having dropped to 0.4 from 1.28 as of the second quarter of 2015. Eleven hedge funds have already exited their position in the stock thirteen others having slimmed their stake.
Amidst the selloff drive, seven new funds have bought stakes in Enzon Pharmaceuticals Inc (NASDAQ:ENZN) helping stabilize the stock price at the current highs of $0.50 a share. Fourteen other funds have increased their stakes in the company. Institutional investors currently own 22.72 million shares representing 20.67% of all the shares in the market.