At This Price, Is It Too Late To Buy Akebia Therapeutics Inc. (NASDAQ:AKBA)?

Akebia Therapeutics Inc. (NASDAQ: AKBA) was one of the biggest movers in the recent trading session, with the company’s stock currently changing hands at 0.58 points up or 8.41% higher on the previous close. So what do we make of this stock that is clearly one of the hottest on the market now? The AKBA stock is trading at $7.48 from a close of $6.90 on 01/15/20. The day’s price range saw the stock hit a low of $6.90, while the highest price level was $7.49 during the intraday trading.

Is the AKBA stock going to continue the plunge or will it steady in coming sessions to climb above its 5-day high price of $7.49. Akebia Therapeutics Inc. (NASDAQ: AKBA) has a 52-week price range of between $2.99 and $9.30. Notably, the reduced performance in the current session comes on the back of condensed market activity for the stock, as its daily trading volume to 5210488, compared to its 3-months daily average volume of 1.33 million. In comparison, the average volume for the last 50 days stands at 1,612,282.

What about the stock’s price forecasts? AKBA had 7 analysts who offered their 12-month price predictions for the Akebia Therapeutics Inc. shares. The group has given the stock a consensus price target of $14.86, with the lowest forecast being put at $9.00. The highest estimate by the 7 analysts is $23.00. The median price target estimate of $15.00 for the stock represents a 50.13% jump in value from the previous price of $7.48. Looking at the 52-week price ranges, the stock’s current price level is 150.17% from its 52-week high price and -19.57% down from its 52-week low in the same period.

Akebia Therapeutics Inc. shares have surged 4.62% over the past week, but its 1-month performance is in the green at 17.06%. Its performance in the current quarter is up 73.15%, while that figure shoots to 90.82% over the past half-year period. Further, we see that the stock’s 12-month charts show that it has gained by 21.82%, with the year-to-date prices up by 18.35%.

The company has a market cap of 891.02 million and a return on assets (ROA) of -28.00%. In gauging how profitable company analysts and investors look at the respective company’s ROA, with returns above 5% generally regarded as good. Also important is the company’s return on equity (ROE), with AKBA’s at -44.80% indicating that the management is able to generate impressive income with whatever equity at their disposal. If you put your money on this stock, then a forecast ROI is at -23.00%.

But what do Wall Street analysts tracking this stock recommend, given that it has 119.12 million shares outstanding? 7 analysts polled have a consensus recommendation rating of 4.17, indicating that AKBA is a Buy stock at the moment. This mean rating was at 4.17 a month ago. Needham called it a Buy stock on November 14, 2019, while H.C. Wainwright rated it a Buy in its note released on August 06, 2019. Of the 7 analysts, 0 analysts rate the AKBA stock as Overweight, while 1 of them rated it as a Hold. 6 analysts rate Akebia Therapeutics Inc. as a Buy, while 0 suggested its Underweight. Only 0 analyst advised investors to sell.

Let’s glean at the company’s earnings forecasts for the current quarter and annual growth estimate for the next 5-year period. The analyst forecasts for this stock’s earnings per share (EPS) for the current quarter (Dec 2019) ranged from a low of -$0.55 per share to -$0.26 per share. The average estimate by the 6 analysts for the AKBA shares was -$0.46 a share, while the company’s last-quarter results returned an EPS of -$0.24. Looking at the current EPS trends, seven days ago, AKBA had its Dec 2019 estimates at -$0.46 per share while the stock’s EPS was forecasted at the -$0.46, a month ago. However, the company’s EPS growth for this quarter stands at -100.00%, while that growth rate for the next fiscal quarter is forecasted at 30.60%.

Let’s briefly check out revenue growth estimates for the company, which is put at 57.60% in the current quarter. However, the next quarter should see net revenue growth of over 17.30%, with analysts forecasting the company’s 12-month growth estimates at -10.00%. 6 analysts have forecast that Akebia Therapeutics Inc. will see its revenue growth net between $89.3 million and $103 million for the current quarter. The next quarter should see revenue returns of between $83 million and $116.27 million.The average revenue for the quarter is expected at $94.35 million, while for the next quarter, it jumps to $95.02 million. Sales growth for the year are estimated at -10.00%.