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Monday, November 23, 2020

Principia Biopharma Inc. (NASDAQ:PRNB) Stock is Soaring, Here is Why

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Principia Biopharma Inc. (PRNB) shares are trading at higher $99.25 and the avg recommendation for the stock is Strong Buy. while the current analyst price target stands at $100.67.

To add more color to this target, the company’s high over the last year is $95.15 and the low is $25.35. Over the last 52 weeks, PRNB is up 4.31% while the S&P 500 is up 0.32%. The catalyst for this interesting swing was the company’s recent earnings report.

A Notable Earnings Report

In the last quarter, PRNB reported a profit of $40.12 million. Principia Biopharma Inc. also saw revenues increase to $50.0 million. In addition, PRNB has free cash flow of -$54.75 million as of 06-2020. The company’s EBITDA came in at $10.3 million which compares well with its peers.

PRNB Return on Equity (ROE) is -23.10%, and its Return on Assets is -21.10%. All told, it is clear that, PRNB 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. PRNB has a short ratio of 6.55 and outstanding shares of 33.09M.

Company Outlook

PRNB has seen increased volume after this news and investors are putting their support behind the value proposition. Furthermore, 10-day volume stands at 0.36 million and more growth is possible in the weeks ahead. Traders will also note the company’s earnings per share came in at -2.40. Principia Biopharma Inc. PRNB also noted assets of $385.95 million at the end of the last quarter. Investors should also keep an eye on sector updates as PRNB has historically followed its peers on positive news.

All told, Principia Biopharma Inc. PRNB has strung together solid data and demonstrated underlying fundamentals. At its current valuation, PRNB 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.

Principia Biopharma Inc. PRNB is now commanding a market cap of 3.33B and a float of 32.21M. PRNB 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 PRNB 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 PRNB, either long or short, and we have not been compensated for this article.

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