Sarepta Therapeutics, Inc. (NASDAQ:SRPT) experienced significant trading activity on Tuesday, as investors acquired a total of 22,262 call options, marking a 14% increase over the average daily volume of 19,557 call options. This surge in options trading is indicative of heightened interest in the biotechnology company, which specializes in developing treatments for rare diseases.
Institutional investors have been adjusting their positions in Sarepta Therapeutics, reflecting a growing confidence in the company’s prospects. For instance, Ancora Advisors LLC increased its holdings by 150% during the first quarter, now owning 500 shares valued at approximately $32,000. Similarly, Byrne Asset Management LLC and Banque Transatlantique SA have recently acquired stakes valued at $33,000 and $44,000, respectively. Furthermore, Brooklyn Investment Group raised its stake by an impressive 450.4%, bringing its holdings to 721 shares valued at around $46,000. Currently, institutional investors hold 86.68% of Sarepta’s stock.
Analysts Adjust Price Targets for Sarepta
Financial analysts have also been revising their price targets for Sarepta Therapeutics. Leerink Partners raised its price target from $12.00 to $15.00, maintaining a “market perform” rating. Meanwhile, Mizuho has reiterated a “neutral” rating with a lowered price objective of $14.00, down from $40.00. Barclays upgraded the stock from “underweight” to “equal weight,” setting a target of $22.00. The Royal Bank of Canada also increased its target from $14.00 to $16.00, while Wells Fargo & Company upped its price objective from $48.00 to $50.00 and assigned an “overweight” rating. Overall, seven analysts rate the stock as a Buy, fifteen as Hold, and seven as Sell, leading to a consensus rating of “Hold” with an average target price of $33.67.
On the trading floor, Sarepta stock has been under pressure, with shares dropping 32.4% to $16.53 during mid-day trading on Tuesday. A total of 18,141,795 shares changed hands, significantly surpassing the usual volume of 6,298,489. Following this downturn, Sarepta Therapeutics holds a market capitalization of approximately $1.62 billion, with a P/E ratio of -19.03 and a beta of 0.51. The company’s stock has fluctuated between a fifty-two week low of $10.41 and a high of $138.81.
Quarterly Earnings Report Highlights
The company recently released its quarterly earnings data on November 3, 2023. Sarepta reported an earnings per share (EPS) of ($0.13), falling short of the consensus estimate of $0.02 by ($0.15). The firm’s revenue for the quarter reached $399.36 million, exceeding analyst expectations of $331.51 million. Despite the revenue beat, the company saw a decline of 14.5% in quarterly revenue compared to the same period last year, when it reported an EPS of $0.62.
Analysts forecast an average EPS of 2.67 for the current fiscal year, as Sarepta continues to navigate the complexities of the biopharmaceutical landscape. Known for its focus on RNA-targeted therapeutics and gene therapies, Sarepta offers several treatments, including EXONDYS 51 and VYONDYS 53 for Duchenne muscular dystrophy, as well as the recently introduced ELEVIDYS, which targets pediatric patients.
As institutional interest remains strong and analysts provide varied insights, the future of Sarepta Therapeutics will depend on its ability to innovate and deliver results that meet investor expectations.
