Collegium Pharmaceutical (COLL) Soars 1.98% on Strong Q1 Earnings

Collegium Pharmaceutical, Inc. (COLL) shares surged 1.98% today, marking the fourth consecutive day of gains, with a cumulative increase of 8.73% over the past four days. The stock price reached its highest level since January 2025, with an intraday gain of 2.66%.

The strategy of buying Collegium Pharmaceutical (COLL) shares after they reached a recent high and holding for 1 week yielded moderate returns but came with considerable volatility and risk. The 5-year backtest shows the stock's price declined 18.5% from the high point, with a standard deviation of 19.3%, indicating significant price swings. The average annual return during this period was -3.6%, underperforming the S&P 500's 6.2% return over the same period. This suggests the strategy faced challenges in generating consistent returns, making it less attractive for long-term investors seeking stability.

Collegium Pharmaceutical, Inc. (COLL) has recently announced several key developments that are likely influencing its stock price. The company reported first-quarter results that exceeded market expectations, with a 22.7% year-on-year increase in sales, reaching $177.8 million. This positive financial performance is expected to have a favorable impact on the stock price.

Additionally, on July 7, 2025, Collegium's board authorized a $150 million stock buyback program. This initiative is expected to remove nearly 15% of outstanding shares from the market, which could boost earnings per share (EPS) and provide a positive tailwind for the stock. The buyback program is seen as a strategic move to enhance shareholder value and demonstrate the company's confidence in its future prospects.