Vivus (VVUS) Rating Increased to Buy at Zacks Investment Research

Vivus (NASDAQ:VVUS) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research report issued on Wednesday. The firm presently has a $0.50 target price on the biopharmaceutical company’s stock. Zacks Investment Research‘s price target would suggest a potential downside of 19.91% from the stock’s current price.

According to Zacks, “VIVUS beat estimates for earnings in the first quarter. However, revenues plunged significantly from the year-ago period. The company is focused on maximize the value of and monetizing its legacy products, Qsymia and Stendra. VIVUS is expanding reimbursement and promotional initiatives to boost Qsymia sales. Moreover, we are positive on VIVUS’ partnership agreements for Stendra as these provide the company with a steady stream of cash flow from upfront and milestone payments. Meanwhile, VIVUS is focusing on building a cash flow positive portfolio of commercial products. However, the impact of appointment of John Amos as its new CEO remains to be seen. Nonetheless, challenges in the obesity market remain. Qsymia sales has also been lackluster since launch. Shares of the company have outperformed the industry so far this year.”

Separately, ValuEngine upgraded shares of Vivus from a “strong sell” rating to a “sell” rating in a report on Wednesday, May 2nd.

Shares of Vivus opened at $0.62 on Wednesday, MarketBeat reports. Vivus has a 12-month low of $0.55 and a 12-month high of $0.66. The stock has a market cap of $55.25 million, a PE ratio of -2.15 and a beta of 0.56. The company has a current ratio of 8.67, a quick ratio of 7.94 and a debt-to-equity ratio of -12.06.

Vivus (NASDAQ:VVUS) last announced its quarterly earnings data on Tuesday, May 8th. The biopharmaceutical company reported ($0.10) earnings per share (EPS) for the quarter, beating the Zacks’ consensus estimate of ($0.11) by $0.01. Vivus had a negative return on equity of 843.43% and a negative net margin of 79.80%. The firm had revenue of $11.90 million for the quarter. analysts anticipate that Vivus will post -0.43 EPS for the current year.

In other news, CEO John P. Amos bought 540,000 shares of the company’s stock in a transaction dated Wednesday, May 16th. The stock was bought at an average cost of $0.56 per share, for a total transaction of $302,400.00. Following the completion of the acquisition, the chief executive officer now owns 810,000 shares in the company, valued at approximately $453,600. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CEO John P. Amos bought 270,000 shares of the company’s stock in a transaction dated Friday, May 11th. The shares were purchased at an average price of $0.52 per share, with a total value of $140,400.00. Following the completion of the acquisition, the chief executive officer now owns 270,000 shares of the company’s stock, valued at approximately $140,400. The disclosure for this purchase can be found here. Over the last quarter, insiders have bought 1,350,000 shares of company stock valued at $723,600. 4.40% of the stock is currently owned by company insiders.

A hedge fund recently raised its stake in Vivus stock. Creative Planning lifted its position in shares of Vivus (NASDAQ:VVUS) by 1,691.3% in the fourth quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The firm owned 366,706 shares of the biopharmaceutical company’s stock after purchasing an additional 346,235 shares during the period. Creative Planning owned 0.35% of Vivus worth $184,000 as of its most recent SEC filing. Institutional investors own 23.70% of the company’s stock.

About Vivus

VIVUS, Inc, a biopharmaceutical company, develops and commercializes novel therapeutic products to address unmet medical needs in human health in the United States and the European Union. The company offers Qsymia for the treatment of obesity as an adjunct to a reduced-calorie diet and increased physical activity for chronic weight management in adult patients with an initial body mass index of 30 or greater, or obese patients, or 27 or greater, or overweight patients in the presence of at least one weight-related comorbidity, such as hypertension, type 2 diabetes mellitus or high cholesterol; and STENDRA, an oral phosphodiesterase type 5 inhibitor for the treatment of erectile dysfunction.

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