Technicalspeculator.com’s Trade-of-the-Week: Arrowhead Pharmaceuticals, Inc. (ARWR)

By Tech_Spec
29-May-2019 4:32:13 PM
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This week’s trade comes from the healthcare sector, biotechnology industry of NASDAQ.  Some of the highlights of this company are: the company has launched a handful of phase 1/2 trials, including a study of ARO-AAT, a subcutaneous RNAi therapy for alpha-1 antitrypsin deficiency; ARO-HBV, a third-generation RNAi therapy for chronic hepatitis B; AMG 890, formerly ARO-LPA, for cardiovascular disease; and ARO-ANG3, an RNAi therapy for metabolic diseases.  However, the company’s only source of revenue right now is from collaboration deals (such as with Johnson & Johnson and Amgen).  It’s a risky stock.

Company profile: Arrowhead Pharmaceuticals, Inc. develops medicines for the treatment of intractable diseases in the United States. The company’s pipeline include ARO-AAT, a RNA interference (RNAi) therapeutic candidate for the treatment of liver diseases associated with alpha-1 antitrypsin deficiency; ARO-APOC3 to treat hypertriglyceridemia; ARO-ANG3 to reduce production of angiopoietin-like protein 3; ARO-ENaC to reduce production of the epithelial sodium channel alpha subunit in the airways of the lung; and ARO-HIF2 for the treatment of clear cell renal cell carcinoma. It is also involved in the development of ARO-HBV, a third-generation subcutaneously administered RNAi therapeutic candidate to treat chronic hepatitis B virus infection; AMG 890 to reduce production of apolipoprotein A; and ARO-AMG1 for treating undisclosed genetically-validated cardiovascular target. Arrowhead Pharmaceuticals, Inc. has collaboration and license agreement with Amgen, Inc.; and Janssen Pharmaceuticals, Inc. to develop RNAi therapeutics. The company was formerly known as Arrowhead Research Corporation and changed its name to Arrowhead Pharmaceuticals, Inc. in April 2016. Arrowhead Pharmaceuticals, Inc. was incorporated in 1989 and is headquartered in Pasadena, California.

Fundamentals:

Trailing P/E: 235.69, Forward P/E: -77.55

EPS: 0.10, Beta: 2.53, Peg: 2.79

P/S: 24.05, P/B: 11.31

ROA: 1.59%, ROE: 6.09%

Quarterly revenue growth: 7,306.00%

Current ratio: 2.31

Additional fundamental data: https://finance.yahoo.com/quote/ARWR/key-statistics?p=ARWR

Technicals:

Recently broke out of a 10-month consolidation

New 52-week high

Above a rising 50-week m/a

Buying momentum (RSI) is positive and rising, Buying volume has spiked in May

1st support level is at $20.25, The safety stop is at $18.75

The target is $27.50

Suggested buying approach: Buy ARWR at the current price level.  If there is a pullback, wait for confirmation of support and then add to the position if desired.  Always use a 3% trailing stop.

For more research and trading ideas, go to www.technicalspeculator.com and sign up for a free account.

 

 

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Author: Tech_Spec

Canada’s only Master of Financial Technical Analysis (MFTA). This 4 – 5 year program offered by the International Federation of Technical Analysts (IFTA) in England is regarded as the global standard. • Instructor of Technical Analysis for the Canadian Securities Institute (CSI). My role is teaching market analysis to industry professionals. • Financial Technical Analyst offering 25 years experience in the financial and investment service industry. • Editor and owner of the Technicalspeculator.com, an on-line independent financial market research and newsletter website. • Registered Securities Advisor

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