Prothena (NASDAQ:PRTA) Reaches New 52-Week Low - Time to Sell?

Prothena Co. plc (NASDAQ:PRTA) has experienced a significant decline, reaching a new 52-week low during trading on Friday. The stock dropped to as low as $13.17 before recovering slightly to a last trade of $13.22, with trading volume reaching 270,041 shares. In comparison, the stock closed at $13.81 on the previous trading day.

Wall Street Analyst Opinions

Prothena has been the subject of various research reports from analysts. Cantor Fitzgerald maintained an "overweight" rating on the company's shares in a note dated September 30. Conversely, StockNews.com downgraded Prothena from a "hold" to a "sell" following their analysis on November 19. Meanwhile, HC Wainwright reaffirmed a "buy" rating and set a price target of $84.00 for Prothena shares in a report from November 13. Bank of America also adjusted their price target for Prothena from $33.00 to $31.00 while maintaining a "neutral" rating in their report released on October 1. Overall, one research analyst has issued a sell rating, two have issued a hold rating, and four analysts provided a buy rating, leaving the stock with a consensus rating of "Hold" and an average price target of $61.83, according to data from MarketBeat.com.

Recent Performance Metrics

Prothena is valued at a market cap of approximately $690.92 million, with a P/E ratio of -5.18 and a beta value of 0.09. The company's 50-day moving average stands at $16.05, while its 200-day moving average is at $19.37. In their last earnings report, published on November 12, Prothena reported an earnings per share (EPS) of ($1.10) for the quarter, surpassing the consensus estimate of ($1.18) by $0.08. However, the company faced a negative return on equity of 24.19% and a staggering negative net margin of 98.86%. Prothena's revenue for the quarter was reported at $0.97 million, falling short of analysts' expectations of $1.22 million, and this represented nearly a 98.9% year-over-year decline. Looking ahead, analysts forecast that Prothena will report an EPS of -2.24 for the current fiscal year.

Institutional Investment Activity

Recent changes by institutional investors greatly influence Prothena's stock. Signaturefd LLC notably increased its position in Prothena by 182.1% during Q2, resulting in ownership of 1,337 shares valued at $28,000 after acquiring an additional 863 shares. Zurcher Kantonalbank Zurich Cantonalbank also raised its stake by 13.1%, currently holding 10,236 shares worth approximately $211,000 after adding 1,186 shares. In the third quarter, China Universal Asset Management Co. Ltd. boosted its position in Prothena by 63.7%, now owning 10,344 shares valued at $173,000. Additionally, Intech Investment Management LLC and XTX Topco Ltd. acquired new stakes worth roughly $210,000 and $260,000, respectively. Institutional and hedge funds collectively hold 97.08% of Prothena's stock.

About Prothena Corporation

Prothena Corporation plc is a late-stage clinical biotechnology company that specializes in discovering and developing innovative therapies for diseases linked to protein dysregulation within the United States. The company is engaged in developing several investigational therapies, including birtamimab, an antibody currently in Phase III trials for treating AL amyloidosis; prasinezumab, a monoclonal antibody for Parkinson's disease at the Phase IIb level; and NNC6019, which is in Phase II clinical trials targeting ATTR amyloidosis. Additionally, Prothena is working on BMS-986446 and PRX012, both in Phase I trials for treating Alzheimer's disease.

Considerations for Investors

As Prothena continues to experience market fluctuations, potential investors should assess whether the company's current challenges warrant a sell, especially in light of its latest stock performance.

Prothena, Stocks, Investment