ARWR Should I Buy
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Arrowhead Pharmaceuticals Inc. (ARWR) is a good buy for a beginner investor with a long-term investment strategy and $50,000-$100,000 available. The company has strong positive catalysts, including FDA approval for its first product, promising clinical data, and a significant increase in revenue. Despite some technical indicators being neutral and recent price volatility, the long-term growth potential and analyst optimism make this stock a solid choice for long-term investment.
The MACD histogram is -0.98, below 0, indicating a bearish trend, but it is negatively contracting, suggesting a potential reversal. RSI is at 33.378, in the neutral zone, showing no clear signal. Moving averages are converging, indicating indecision in the market. Key support is at $61.499, and resistance is at $67.523. The stock is trading near support levels, which could present a buying opportunity.
FDA approval for REDEMPLO, expected to drive revenue growth.
Q1 2026 revenue of $264.03 million, surpassing expectations by $33.18 million.
Strong capital raising of $1.33 billion, including payments from Novartis and Sarepta.
Positive sentiment from analysts, with multiple Buy ratings and price target increases.
Promising clinical data for obesity treatments ARO-INHBE and ARO-ALK7.
Post-market price drop of 3%, reflecting market caution.
Net income and EPS have significantly declined YoY despite revenue growth.
No recent congress trading data or significant hedge fund or insider activity.
Arrowhead reported Q1 2026 revenue of $264.03 million, up 10461.32% YoY, driven by licensing agreements. However, net income dropped to $30.8 million (-117.80% YoY), and EPS fell to $0.22 (-115.83% YoY). Gross margin remained strong at 100%. The company raised $1.33 billion in capital, indicating strong financial backing for future growth.
Analysts are optimistic, with multiple Buy ratings and price target increases. B. Riley raised the price target to $101, H.C. Wainwright to $100, and Goldman Sachs to $85. Analysts highlight the company's promising obesity treatments and pipeline as key growth drivers. However, Morgan Stanley maintains a Neutral stance with an Equal Weight rating.
