Do Analysts Think You Should Buy Cassava Sciences Inc. (NASDAQ:SAVA) Stock?

Cassava Sciences Inc. (NASDAQ: SAVA) was one of the biggest movers in the recent trading session, with the company’s stock currently changing hands at 0.93 points up or 12.37% 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 SAVA stock is trading at $8.45 from a close of $7.52 on 01/15/20. The day’s price range saw the stock hit a low of $7.16, while the highest price level was $8.45 during the intraday trading.

Is the SAVA stock going to continue the plunge or will it steady in coming sessions to climb above its 5-day high price of $8.70. Cassava Sciences Inc. (NASDAQ: SAVA) has a 52-week price range of between $0.86 and $10.95. 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 3779011, compared to its 3-months daily average volume of 4.24 million. In comparison, the average volume for the last 50 days stands at 5,391,818.

What about the stock’s price forecasts? SAVA had 2 analysts who offered their 12-month price predictions for the Cassava Sciences Inc. shares. The group has given the stock a consensus price target of $9.00, with the lowest forecast being put at $6.00. The highest estimate by the 2 analysts is $12.00. The median price target estimate of $9.00 for the stock represents a 6.11% jump in value from the previous price of $8.45. Looking at the 52-week price ranges, the stock’s current price level is 882.56% from its 52-week high price and -22.83% down from its 52-week low in the same period.

Cassava Sciences Inc. shares have plunged -1.74% over the past week, but its 1-month performance is in the green at 349.47%. Its performance in the current quarter is up 565.35%, while that figure shoots to 507.91% over the past half-year period. Further, we see that the stock’s 12-month charts show that it has gained by 675.23%, with the year-to-date prices up by 62.50%.

The company has a market cap of 141.54 million and a return on assets (ROA) of -19.70%. 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 SAVA’s at -20.70% indicating that the management is able to generate impressive income with whatever equity at their disposal.

But what do Wall Street analysts tracking this stock recommend, given that it has 16.75 million shares outstanding? 2 analysts polled have a consensus recommendation rating of 5.00, indicating that SAVA is a Buy stock at the moment. Of the 2 analysts, 0 analysts rate the SAVA stock as Overweight, while 0 of them rated it as a Hold. 2 analysts rate Cassava Sciences 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 -$0.14 per share to -$0.12 per share. The average estimate by the 2 analysts for the SAVA shares was -$0.13 a share, while the company’s last-quarter results returned an EPS of -$0.42. Looking at the current EPS trends, seven days ago, SAVA had its Dec 2019 estimates at -$0.13 per share while the stock’s EPS was forecasted at the -$0.13, a month ago. The annual earnings per share growth for the next five years is estimated to be 83.80%, which compares to the 58.11% recorded in the past five-year period.