Sarepta Review

Overview of Sarepta Therapeutics (SRPT)

The portfolio includes 2 stocks, share of ~3.49%. The price of the share at the time of writing is $99.98 (some kind of Eldorado, by God 😂).

Another representative of biopharmaceuticals, also not yet profitable, like ACADIA, revenue dynamics: 2017 - $155 million, 2018 - $301 million, 2019 - $381 million., reporting.

Capitalization = 7.8 billion, there are no P/E and PEG indicators, as well as current profit.
I will not show off my knowledge from Google about what the company does and how effective its drugs based on RNA interference will soon be for the treatment of rare and infectious diseases 😎😂, let's look carefully at insider transactions recently, and there have been quite a lot of them, for convenience I will present them in the format:

date of purchase ➡ purchase amount ➡ name ➡ share price at the time of purchase ➡ employee's annual salary ➡ position (where I found it).

💵 16 Sep 19 - $437,455 - Richard Barry - $87.49

💵 09 Sep 19 - $173,480 - Michael Bonney - $86.74

💵 06 Sep 19 - $219,950 - M. Behrens - $87.98 - Chairwoman (something like chairman 😌, experience in the company - 5 years) - $500,000 👈 bought stocks for six months' salary

💵 21 Aug 19 - 496,593 $ - Richard Barry - 99.32 $

💵 14 Aug 19 - $453,250 - Richard Barry - $122.50

💵 13 Aug 19 - $159,250 - Richard Barry - $122.50

💵 13 Aug 19 - 2,000,160 $ - Douglas Ingram - 123.41 $ - President (works for almost 3 years) - 1,430,000 $ 👈 spent more than a year's salary


The most curious character here with the most aggressive purchases is a certain Richard Barry. The only thing we could find about him was that he is on the board of directors. Plus, his share of ownership in the company is very decent - 4.1%, more than 3 million stocks. I am not citing sales of stocks, I repeat, insiders are in fact pure sellers and many simply “go to cash” in this way or receive ZP with options, the main thing is that there are no mass panic dumps of stocks.

In addition to the volume of purchases and positions of employees who bought stocks, I would like to draw attention to the prices of recent purchases - they are in the range of $88-122 per share. I believe that these guys from the list above find this price attractive for gaining a position, draw your own conclusions.

And yes, a complete list of insider transactions for the company - https://www.gurufocus.com/stock/SRPT/insider.


🍰 For dessert - according to analysts, the forecasts are super optimistic - reaching net profit from 2022, and >$1 billion of net profit based on the results of 2024. The amount of earnings per share at the end of 2024 is $5-39, if we take a minimum of $5, then the forward PE is ~20.

Conclusion:

An interesting biotech company, I recommend it for aggressive portfolios with a moderate share, I think I will keep 5-6%. I don’t give a price forecast, as for ACADIA, but I certainly hope for a multiple increase in the next 4-6 years.

P.S. The only thing that bothers Sarepta is that there are 1.1 billion Ksh in the accounts and there is a debt that appeared 2 years ago, now it is ~700 million, and has a tendency to grow (let's hope that this is a temporary phenomenon, and as long as it is less than the cache and there are very steep prospects for the company's growth, there is no need to be especially afraid).

Graphics are traditional:

1⃣ Share price 2015 - 2020
2⃣ Revenue and profit, 2020 and beyond - forecast values
3⃣ Earnings per share, 2020 and beyond - forecast values