REPH stock: buy or sell?

REPH stock price: $9.13 1.56% At close on May 21st, 2019

Updated on:
May 21st, 2019

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Shares of Recro Pharma ended today at $9.13 and stepped up a good 1.56%. Tuesday was the third green day in a row, soaring 1.91%. On Wednesday REPH boosted a super good 5.64%. On Thursday REPH plunged a dreadful -5.03%.

Recro Pharma, Inc., a specialty pharmaceutical company, engages in developing non-opioid products for the treatment of acute pain primarily in the United States.

Should I buy REPH stock?

You can't be a successful trader if you don't follow a methodolgy or system that assist you in choosing companies and the correct market timing. Trading strategies are meant for helping you in the decision process of what stocks to pick and when is the best moment to buy them. At Stocks2.com, we use very simple but trusted and powerful trend following trading strategies. Simple things usually work the best.

None of our preferred buy setups matches with Recro Pharma stock situation right now, therefore this is not a suitable entry point.

Buy setupElegible
New all-time highNo
New 52 week highNo
Price crossing up 200d MANo
100d MA crossing up 200d MANo
This doesn't mean REPH will slide in coming sessions, or it will not rise higher. Simply, it doesn't match our recommended trading systems.

Is Recro Pharma stock a buy?

Financial institutions and banks publish stock ratings everyday. At Stocks2.com, we collected 3 ratings published for REPH stock in the last 30 days.

Is REPH a good stock to buy?
DateAnalyst / BrokerPrevious ratingCurrent rating
2019-3-25Roth CapitalBuyNeutral
2019-3-25Oppenheimern/aOutperform
2019-1-31Janney Montgomery ScottBuyBuy

REPH stock analysis

Daily outlook

Shares of Recro Pharma stepped up a good 1.56% and closed at $9.13.

Recro Pharma stepped up a good 1.56% and closed at $9.13. Since last April when REPH stock price broke up the SMA200d line, it gained $2.61 (40.03%). Since last January when SMA100d and SMA200d crossed up, REPH price gained $1.23 per share (15.57%). From a daily perspective, REPH is in a short term uptrend after plotting its last bottom ($8.50, on May/9) higher than the previous bottom, and its last top ($9.58, on Wednesday) also over the previous top. Now trading in between its last bottom and last top REPH might consolidate in a plain range, waiting to break out over $9.58 or down under $8.50.

REPH stock chart (daily)

Weekly outlook

Recro Pharma inched a beatiful 1.56% this week. Late April REPH boosted a superb 5.11% in just one week.

Recro Pharma is in a clear downtrend, marking successive falling peaks and bottoms. Now is trading in between the - range. There is an opportunity to rebound and reverse this situation if price can hold above the level. Since price and SMA40w lines crossed up early April, REPH climbed $3.27 (55.80%). By mid January, SMA20w and SMA40w crossed up triggering a rise of 16.75%.

REPH stock chart (weekly)

REPH stock price history

REPH IPO was on March 7th, 2014 at $8.53 per share1. Since then, REPH stock surged a 7.00%, with a yearly average of 1.40%. If you had invested right after REPH's IPO a $1,000 in REPH stock in 2014, it would worth $70.00 today.

1: Adjusted price after possible price splits or reverse-splits.

REPH stock historical price chart

REPH stock reached 52-week highs at $13.05, and all-time highs 2015-07-17 with a price of 18.3.

REPH stock price target is $9.80

Nobody can reliably foresee how stock prices may evolve in the future. However, banks and other financial institutions analysts, with the help of lots of data and algorithms do their best to predict the stock prices movement. We do not recommend to follow these stock price predictions without a critical thinking from your side, as their accuracy is usually low. For the last 30 days we found 3 price forecasts for Recro Pharma stock:
REPH stock price predictions
DateAnalyst / BrokerActionPrevious targetCurrent targetDiff
2019-3-25Roth CapitalReiterates$15.00$7.50-50%
2019-3-25OppenheimerReiterates$19.00$9.00-52.6%
2019-1-31Janney Montgomery ScottReiteratesn/a$13.00-
(in average)$17.00$9.80-42.0%
The price target for Recro Pharma stock is $9.80, moving in a range between $13.00 and $7.50. In average, analysts' outlook on REPH price target is negative, downgrading the target by a -42.00% from previous estimations.

Financials and fundamental analysis

Earnings date and Earnings per Share

Recro Pharma disappointed analysts on February when it posted an Earnings per Share (EPS) of $-0.58 when the analysts' forecast was $-0.74.
REPH earnings date and EPS evolution
QuarterReporting dateEstimated EPSActual EPSSurprise
2017-Q1-n/a-0.42n/a
2017-Q2-n/a-0.46n/a
2017-Q32017-11-08-0.73n/an/a
2017-Q42018-02-27-0.85-0.63n/a
2018-Q12018-05-09-0.68-0.65n/a
2018-Q22018-08-07-1.35-0.62n/a
2018-Q32018-11-07-0.67-0.64n/a
2018-Q42019-02-19-0.74-0.58n/a
2019-Q1-n/an/an/a
2019-Q2-n/an/an/a

Annual financial results

Compared to 2017, last anual sales report draw a pretty good growth of 7.67% to $77.35 M dollars. When comparing 2018 vs 2017, nevertheless, profit margin (that is, the net income divided by revenues) collapsed a -33.36% to -103.07%.

REPH annual Sales and Income evolution
YearSalesYoYIncome/(margin)YoY
2015$52 M-$3.03 M5.8%-
2016$69 M33.46%$-30.21 M-43.6%-1,095.88%
2017$72 M3.60%$-50.08 M-69.7%65.80%
2018$77 M7.67%$-79.72 M-103.1%59.19%

Quarterly financial results

Recro Pharma posted $17.78 million in sales for 2018-Q4, a -2.73% decline compared to previous quarter. Reported quarter earnings marked $-41.30 M with a profit margin of -232.23%. Profit margin plunged a -159.72% compared to previous quarter when profit margin was -72.50%. When comparing turnover to same quarter last year, Recro Pharma sales marked a fateful decrease and fell a -6.62%. Looking back to recent quarterly results, Recro Pharma posted 2 negative quarters in a row.
REPH quarterly Sales and Income evolution
QuarterSales1QoQ2Income1/(margin)QoQ2
2017-Q1$19 M-$-8.09 M-43.2%-
2017-Q2$17 M-9.66%$-8.86 M-52.3%9.52%
2017-Q3$17 M1.09%$-9.06 M-52.9%2.20%
2017-Q4$19 M11.28%$-24.08 M-126.5%165.96%
2018-Q1$20 M2.61%$-12.46 M-63.7%-48.28%
2018-Q2$22 M11.24%$-12.72 M-58.5%2.09%
2018-Q3$18 M-15.90%$-13.26 M-72.5%4.25%
2018-Q4$18 M-2.73%$-41.30 M-232.2%211.53%

Recro Pharma ownership

When you are planning to buy shares of a stock, it's always worth to review its ownership structure.

Management staff in all public traded companies that hold equity is required to report every transaction to the SEC. For Recro Pharma, 6.09% of all outstanding shares are owned by its staff.

In case of Recro Pharma stock, 70.09% of its shares are held by institutions (mutual funds, pension funds, big banks and other large financial institutions). Bearish positions for REPH stock account 0.00%, no big difference from last month.

For a better context understanding, the following table shows ownership data compared to other related stocks:

REPHACRXBDSICARADRRX
Market cap$202.5 M$225.7 M$401.2 M$755.3 M$118.5 M
Total shares22.2 M78.9 M87.4 M39.8 M162.4 M
Float shares14.4 M77.7 M59.9 M35.1 M155.9 M
  - Institutional holdings (%)70.1%19.7%58.8%62.4%46.1%
  - Insider holdings (%)6.1%11.6%6.0%2.9%4.0%
Shares in short selling0.0%0.0%0.0%0.0%0.0%

REPH summary

Tuesday, May 21st, 2019
Open$9.02
Close$9.13
Day range$9.00 - $9.24
Previous close$8.99
Session gain1.56%
Average true range$0.40
50d mov avg$8.37
100d mov avg$8.30
200d mov avg$7.62
Daily patternlt06a
Weekly pattern lt02a

Recro Pharma performance

Stocks performance is always measured in comparision to the market or competitors and related stocks in the same industry. We compared Recro Pharma against AcelRx Pharmaceuticals, BioDelivery Sciences International, Cara Therapeutics, DURECT, Flexion Therapeutics, Insys Therapeutics, and Pacira Pharmaceuticals in the following table:
Stock3m6m12m
REPHRecro Pharma9.21%41.11%64.50%
ACRXAcelRx Pharmaceut...-10.63%-21.21%-10.63%
BDSIBioDelivery Scien...-8.20%26.45%91.25%
CARACara Therapeutics12.09%2.26%11.63%
DRRXDURECT-7.59%-13.10%-62.94%
FLXNFlexion Therapeut...-9.95%-17.11%-49.64%
INSYInsys Therapeutic...-85.23%-86.44%-86.73%
JNJ2.00%-1.41%16.21%
PCRXPacira Pharmaceut...10.50%-5.98%23.43%

Recro Pharma competitors

One check before trading any stock is to review a list of its competitors, in this case for Recro Pharma. We chose 8 companies as Recro Pharma competitors as they are in the same industry or have similar market objectives.