On June 3, 2023, shares of Collegium Pharmaceutical, Inc. (NASDAQ:COLL) took a tumble during mid-day trading after an insider sold shares in the company. Specifically, CFO Colleen Tupper sold 31,640 shares of the company’s stock in a transaction dated March 15th for an average price of $23.77, causing the stock to trade as low as $21.72 and last traded at $21.72 on Friday. This resulted in a decline of 95% from the average session volume of 429,588 shares, with only 19,418 trades being made during mid-day.
CEO Joseph Ciaffoni also sold his own shares on May 30th, selling 31,271 shares at an average price of $21.90 for a total value of $684,834.90. These insider sales have raised some alarm bells amongst investors.
Despite these events, research analysts have recently reaffirmed their “buy” rating and issued target prices on Collegium Pharmaceutical’s stock. Needham & Company LLC has set its price target at $35.00 while Piper Sandler lowered its objective from $37.00 to $35.00 in April this year.
Collegium Pharmaceutical is a pharmaceutical company that specializes in developing abuse-deterrent products for the treatment of chronic pain and other diseases such as Xtampza ER, Nucynta ER and IR, Belbuca and Symproic.
Although the business’s fifty day moving average price is currently at $23.12 and its two-hundred day moving average is at $24.40; concerns about their ratio levels make investors cautious about investing further into the company due to its debt-to-equity ratio of 3.42 alongside quick ratio assets of just over one times current liabilities (1:13) expected before tax in FY2023.
Moving forward, only time will tell how investors will react to these insider sales by Collegium Pharmaceutical’s CFO Colleen Tupper and CEO Joseph Ciaffoni in the markets and what they mean for the future of the company itself. Investors should be cautious about further stock purchases until a clearer understanding is obtained about the business’s true status.
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Institutional investors and hedge funds show confidence in Collegium Pharmaceutical’s potential for growth.
On June 3, 2023, it was reported that several institutional investors and hedge funds made moves with their stakes in Collegium Pharmaceutical (COLL). Arrowstreet Capital Limited Partnership acquired a new stake worth approximately $7,506,000 in the first quarter. Pacer Advisors Inc. also bought a new stake valued at about $6,990,000 during the fourth quarter. Additionally, Marshall Wace LLP increased its holdings in Collegium Pharmaceutical by 668.2% during the same period and now owns 307,030 shares of the specialty pharmaceutical company’s stock valued at $7,123,000 after acquiring an additional 267,065 shares.
Cambridge Investment Research Advisors Inc. also boosted its holdings in Collegium Pharmaceutical by more than three times during the fourth quarter and now owns 316,625 shares worth $7,346,000 after acquiring an additional 247,697 shares. Finally, Two Sigma Investments LP increased its holdings in Collegium Pharmaceutical by over two times during the first quarter and now owns 359,209 shares valued at $8,617,000 after acquiring an additional 245,663 shares.
This news indicates that significant investors remain confident in Collegium Pharmaceutical’s potential for growth despite market uncertainties and challenges faced by the pharmaceutical industry. The move to increase stakes may also indicate high expectations for future earnings growth from this specialty pharmaceutical company.
Collegium Pharmaceutical has recently made headlines for its drug Xtampza ER which received FDA approval as an opioid painkiller with abuse-deterrent properties. This drug provides an alternative to current opioid options that have contributed to the ongoing opioid crisis in many countries.
Investors may be taking notice of this development as it adds significant value to Collegium’s product portfolio. With a focus on developing innovative solutions for patients suffering from chronic pain and other serious medical conditions with unmet needs, Collegium is poised for success under capable leadership and a strong market position.
In conclusion, Collegium Pharmaceutical is a specialty pharmaceutical company that continues to attract significant investment from leading institutional investors and hedge funds. With a growing portfolio of innovative drugs, including Xtampza ER with its abuse-deterrent properties, the company is well-positioned for growth in the future. Investors who have taken notice are making moves to capitalize on its potential by increasing their stakes in Collegium Pharmaceutical.
