Sagent (SGNT) Shares Spike on Report of Exploring Sale

Sagent Pharmaceuticals‘ (SGNT) stock jumped nearly 15% in early trading following a Reuters report saying the company is exploring a sale. The publication notes Sagent is working with investment bank Perella Weinberg Partners, which has reached out to other companies and private equity firms to solicit interest in a possible deal.

Shares of Sagent went up following the news, reaching an intraday high of $15.43 after closing at $13.27. Approximately 1.3 million shares have already changed hands, compared to the stock’s average daily volume of 409K shares.

Fundamentally, SGNT shows the following financial data:

  • $46.01 million in cash in most recent quarter
  • $381.49 million t-12 total assets
  • $275.75 million total equity
  • $318.75 million t-12 revenue
  • $39.88 million annual net income
  • $18.94 million free cash flow

On valuation measures, Sagent Pharmaceuticals Inc. shares have a T-12 price/sales ratio of 1.36, and a price/book for the same period of 1.59. EPS is $0.79. The name has a market cap of $242.70 million and a median Street price target of $20.00 with a high target of $28.00. Currently there are 4 analysts that rate SGNT a ‘Buy’, 5 rate it a ‘Hold’. No analyst rates it a ‘Sell’.

In terms of share statistics, Sagent has a total of 32.79 million shares outstanding, with 27.74% held by insiders and 76.80% held by institutions. The stock’s short interest currently stands at 7.75%, bringing the total number of shares sold short to 1.93 million.

Shares of Schaumburg, Illinois-based specialty pharmaceutical company are down 48.12% year-over-year, and 16.59% year-to-date.

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