Is Now the Time to Invest in Amarin Corporation plc (NASDAQ:AMRN)?

Is Now the Time to Invest in Amarin Corporation plc (NASDAQ:AMRN)?


The Amarin Corporation plc (AMRN) shares are trading at lower $6.70 and the avg recommendation for the stock is Moderate Buy.

To add more color to this target, the company’s high over the last year is $26.12 and the low is $3.95. Over the last 52 weeks, AMRN is down -74.35% while the S&P 500 is down -2.38%. The catalyst for this interesting swing was the company’s recent earnings report.

A Notable Earnings Report

In the last quarter, AMRN reported a profit of $120.19 million. Amarin Corporation plc also saw revenues increase to $154.99 million. In addition, AMRN has free cash flow of $3.89 million as of 03-2020 The company’s EBITDA came in at -$23.23 million which compares well with its peers.

AMRN booked profit margins of -3.70%, its Return on Equity (ROE) is -4.10%, and its Return on Assets is -2.40%. All told, it is clear that, AMRN needs to be on your watchlist.

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Of course, we must look beyond the financials and question how well those numbers represent the sustainable earnings power of the business. Investors need to know how sustainable this current run. AMRN has a short ratio of 2.21 and outstanding shares of 361.14M.

Company Outlook

AMRN has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 5.91 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at -0.05. Amarin Corporation plc AMRN also noted assets of $925.67 million at the end of the last quarter. Investors should also keep an eye on sector updates as AMRN has historically followed its peers on positive news.

All told, Amarin Corporation plc AMRN has strung together solid data and demonstrated underlying fundamentals. At its current valuation, AMRN represents an interesting risk/reward case. Traders should stay tuned to see if this recent report will push the stock to test recent resistance levels.

Amarin Corporation plc AMRN is now commanding a market cap of 2.67B and a float of 347.04M. AMRN is increasing its credibility in this sector and that could lead to more upside down the line. Sign-up for continuing coverage on shares of AMRN stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!

Disclosure: we hold no position in AMRN, either long or short, and we have not been compensated for this article.