Arena Stock Buy Hold or Sell Recommendation

ARNA -  USA Stock  

USD 67.04  0.64  0.96%

Given the investment horizon of 90 days and your above-average risk tolerance, our recommendation regarding Arena Pharmaceuticals is 'Strong Hold'. Macroaxis provides Arena Pharmaceuticals buy-hold-or-sell recommendation only in the context of selected investment horizon and investor attitude towards risk assumed by holding ARNA positions. The advice algorithm takes into account all of Arena Pharmaceuticals' available fundamental, technical, and predictive indicators you will find on this site.

Search Advice 

 
Refresh
The advice is provided from Arena Pharmaceuticals' buy-and-hold perspective. Please continue to Arena Pharmaceuticals Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. We conduct extensive research on individual companies such as Arena and provide practical buy, sell, or hold advice based on selected investing horizon and risk tolerance towards Arena Pharmaceuticals.

Execute Arena Pharmaceuticals Buy or Sell Advice

The Arena recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Arena Pharmaceuticals. Macroaxis does not own or have any residual interests in Arena Pharmaceuticals or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Arena Pharmaceuticals' advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell Arena PharmaceuticalsBuy Arena Pharmaceuticals
Strong Hold

Volatility

Very steadyDetails

Hype Condition

Low keyDetails

Current Valuation

UndervaluedDetails

Odds of Distress

Very SmallDetails

Economic Sensitivity

Slowly supersedes the marketDetails

Analyst Consensus

Strong BuyDetails

Financial Strenth (F Score)

PoorDetails

Financial Leverage

InapplicableDetails

Reporting Quality (M-Score)

Unlikely ManipulatorDetails
For the selected time horizon Arena Pharmaceuticals has a Risk Adjusted Performance of (0.06), Jensen Alpha of (0.21), Total Risk Alpha of (0.26) and Treynor Ratio of (0.77)
Macroaxis provides unbiased investment recommendation on Arena Pharmaceuticals that should be used to complement current analysts and expert consensus on Arena Pharmaceuticals. Our trade advice engine determines the company's potential to grow exclusively from the perspective of an investors' current risk tolerance and investing horizon. To make sure Arena Pharmaceuticals is not overpriced, please confirm all Arena Pharmaceuticals fundamentals, including its gross profit, debt to equity, and the relationship between the price to earning and cash and equivalents . Given that Arena Pharmaceuticals has a price to book of 3.64 X, we suggest you to validate Arena Pharmaceuticals market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your prevailing risk tolerance and investing horizon.

Arena Pharmaceuticals Trading Alerts and Improvement Suggestions

Arena Pharmaceuticals generates negative expected return over the last 90 days
Arena Pharmaceuticals is unlikely to experience financial distress in the next 2 years
The company reported the previous year's revenue of 319 K. Net Loss for the year was (404.73 M) with loss before overhead, payroll, taxes, and interest of (323.42 M).
Arena Pharmaceuticals currently holds about 1.1 B in cash with (353.09 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 18.3.
Arena Pharmaceuticals has a poor financial position based on the latest SEC disclosures
Over 90.0% of the company shares are held by institutions such as insurance companies
Latest headline from www.equities.com: Arena Pharmaceuticals Inc gains 2.7230 percent for June 17 - Equities.com

Arena Pharmaceuticals current analysts advice

We track the performance of the top 100 financial experts across various large and mid-size financial boutiques. Arena analyst recommendations are determined by taking all analyst recommendations and averaging them as Strong Buy, Buy, Hold, Strong Sell or Sell. There is no one specific way to measure analysis performance other than comparing it to the past results via a very sophisticated attribution analysis. Arena analyst consensus and target price projections should be used in combination with other traditional techniques such as stock price forecasting, technical analysis, earnings estimate, and various momentum models.
Target Mean Price97.53
Target Median Price100.00
Target High Price120.00
Recommendation Mean1.70
Number Of Analyst Opinions15
Target Low Price76.00
Average Consensus Strong Buy
The consensus estimates and target price estimation comprises individual analyst assessments, and may or may not mutch the Macroaxis buy or sell advice. It is determined by taking an average of all analyst recommendations and classifying them as Strong Buy, Buy, Hold, or Sell.

Arena Pharmaceuticals Returns Distribution Density

The chart of the probability distribution of Arena Pharmaceuticals stock daily returns describes the distribution of returns around its average expected value. We use Arena Pharmaceuticals' stock's Value At Risk and its Upside Potential as a relative measure of the distribution. The distribution of Arena Pharmaceuticals returns is essential to provide solid investment advice for Arena Pharmaceuticals stock.
Mean Return-0.19Value At Risk-3.7
Potential Upside2.88Standard Deviation2.06
 Return Density 
      Distribution 
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Arena Pharmaceuticals historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Arena Pharmaceuticals Cash Flow Accounts

201620172018201920202021 (projected)
Capital Expenditure140 K676 K(692 K)(4.82 M)(820 K)(884.74 K)
Depreciation Amortization and Accretion4.99 M4.28 M3.76 M3.23 M3.86 M4.87 M
Net Cash Flow or Change in Cash and Cash Equivalents(64.81 M)68.12 M2.2 M81.6 M(23.73 M)(24.35 M)
Issuance Purchase of Equity Shares370 K248.81 M389.03 M13.15 M354.42 M382.4 M
Issuance Repayment of Debt Securities(2.98 M)(3.52 M)(4 M)(3.28 M)(3.81 M)(4.12 M)
Net Cash Flow from Financing(2.29 M)245.29 M385.03 M9.87 M350.61 M378.29 M
Net Cash Flow from Investing(750 K)(112.39 M)(251.27 M)(496.95 M)(21.4 M)(23.09 M)
Net Cash Flow from Operations(61.48 M)(66.64 M)(132.21 M)568.69 M(353.09 M)(362.39 M)
Effect of Exchange Rate Changes on Cash(294 K)1.87 M654 K(10 K)160 K158.74 K
Share Based Compensation11.07 M7.86 M19.54 M53.05 M59.92 M64.65 M

Arena Pharmaceuticals Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Arena Pharmaceuticals or Healthcare sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Arena Pharmaceuticals stock's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Arena stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over DOW
-0.21
β
Beta against DOW0.27
σ
Overall volatility
1.89
Ir
Information ratio -0.11

Arena Pharmaceuticals Volatility Alert

Arena Pharmaceuticals exhibits very low volatility with skewness of -0.22 and kurtosis of -0.07. However, we advise investors to further study Arena Pharmaceuticals technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Arena Pharmaceuticals' stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Arena Pharmaceuticals' stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different stocks as prices fall.

Arena Pharmaceuticals Fundamentals Vs Peers

Comparing Arena Pharmaceuticals' fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Arena Pharmaceuticals' direct or indirect competition across all of the common fundamentals between Arena Pharmaceuticals and the related equities. This way, we can detect undervalued stocks with similar characteristics as Arena Pharmaceuticals or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Arena Pharmaceuticals' fundamental indicators could also be used in its relative valuation, which is a method of valuing Arena Pharmaceuticals by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Arena Pharmaceuticals to competition
   Acquisition by Schoch Steven J of 7202 shares of Arena Pharmaceuticals subject to Rule 16b-3 [view details]

About Arena Pharmaceuticals Buy or Sell Advice

When is the right time to buy or sell Arena Pharmaceuticals? Buying stocks such as Arena Pharmaceuticals isn't very hard. However, what challenging for most investors is doing it at the right time to beat the stock market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Although Arena Pharmaceuticals investors may find it confusing at the beginning, most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
 2020 2021 (projected)
Receivables1.49 M1.53 M
Inventories7.71 M9.37 M

Use Investing Ideas to Build Portfolios

In addition to having Arena Pharmaceuticals in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

Did You Try This Idea?

Run Money Market Thematic Idea Now

Money Market
Money Market Theme
Funds or Etfs investing in various types of short-term (less than one year) fixed income instruments of high-quality and liquidity. Money Market theme has 40 constituents.
View All  Next Launch Money Market
Please continue to Arena Pharmaceuticals Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool. Note that the Arena Pharmaceuticals information on this page should be used as a complementary analysis to other Arena Pharmaceuticals' statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Fund Screener module to find activelly-traded funds from around the world traded on over 30 global exchanges.

Complementary Tools for Arena Pharmaceuticals Stock analysis

When running Arena Pharmaceuticals price analysis, check to measure Arena Pharmaceuticals' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Arena Pharmaceuticals is operating at the current time. Most of Arena Pharmaceuticals' value examination focuses on studying past and present price action to predict the probability of Arena Pharmaceuticals' future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Arena Pharmaceuticals' price. Additionally, you may evaluate how the addition of Arena Pharmaceuticals to your portfolios can decrease your overall portfolio volatility.
Instant Ratings
Determine any equity ratings based on digital recommendations. Macroaxis instant equity ratings are based on combination of fundamental analysis and risk-adjusted market performance
Go
Equity Analysis
Research over 250,000 global equities including funds, stocks and ETFs to find investment opportunities
Go
Portfolio Center
All portfolio management and optimization tools to improve performance of your portfolios
Go
CEO Directory
Screen CEOs from public companies around the world
Go
Idea Analyzer
Analyze all characteristics, volatility and risk-adjusted return of Macroaxis ideas
Go
Portfolio Rebalancing
Analyze risk-adjusted returns against different time horizons to find asset-allocation targets
Go
Risk-Return Analysis
View associations between returns expected from investment and the risk you assume
Go
The market value of Arena Pharmaceuticals is measured differently than its book value, which is the value of Arena that is recorded on the company's balance sheet. Investors also form their own opinion of Arena Pharmaceuticals' value that differs from its market value or its book value, called intrinsic value, which is Arena Pharmaceuticals' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Arena Pharmaceuticals' market value can be influenced by many factors that don't directly affect Arena Pharmaceuticals underlying business (such as pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Arena Pharmaceuticals' value and its price as these two are different measures arrived at by different means. Investors typically determine Arena Pharmaceuticals value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Arena Pharmaceuticals' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.