AbCellera Biologics (NASDAQ:ABCL) Shares Gap Up After Better-Than-Expected Earnings

Key Points

• AbCellera Biologics' shares gapped up to $4.82 after reporting an earnings beat with a loss of ($0.12) EPS compared to a consensus estimate of ($0.17).
• The company's revenue for the quarter was $17.08 million, significantly surpassing the expected $7.55 million.
• Wall Street analysts have mixed ratings for the stock, with target price estimates ranging from $5.00 to $10.00, reflecting a general "buy" sentiment.

AbCellera Biologics Inc. (NASDAQ:ABCL - Get Free Report)'s stock price gapped up prior to trading on Friday following a better than expected earnings announcement. The stock had previously closed at $4.24, but opened at $4.82. AbCellera Biologics shares last traded at $4.07, with a volume of 5,775,444 shares.

The company reported ($0.12) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.17) by $0.05. AbCellera Biologics had a negative return on equity of 15.99% and a negative net margin of 511.88%. The business had revenue of $17.08 million during the quarter, compared to analysts' expectations of $7.55 million.

Wall Street Analysts Forecast Growth

Several equities analysts have recently weighed in on ABCL shares. Leerink Partners started coverage on shares of AbCellera Biologics in a research note on Monday, July 7th. They set an "outperform" rating and a $5.00 price target for the company. Leerink Partnrs raised shares of AbCellera Biologics to a "strong-buy" rating in a research note on Monday, July 7th. KeyCorp raised their price target on shares of AbCellera Biologics from $5.00 to $10.00 and gave the stock an "overweight" rating in a research note on Monday, July 14th. Stifel Nicolaus decreased their price target on shares of AbCellera Biologics from $8.00 to $7.00 and set a "buy" rating for the company in a research note on Friday. Finally, Truist Financial decreased their target price on shares of AbCellera Biologics from $28.00 to $10.00 and set a "buy" rating for the company in a research note on Friday, May 16th. One investment analyst has rated the stock with a hold rating, four have assigned a buy rating and one has assigned a strong buy rating to the company. According to data from MarketBeat, the stock has a consensus rating of "Buy" and a consensus target price of $8.00.

Hedge Funds Weigh In On AbCellera Biologics

Several hedge funds and other institutional investors have recently made changes to their positions in ABCL. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC grew its stake in shares of AbCellera Biologics by 248.2% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 15,671,063 shares of the company's stock valued at $34,946,000 after buying an additional 11,171,063 shares in the last quarter. Capital World Investors bought a new position in shares of AbCellera Biologics in the fourth quarter valued at $23,245,000. Norges Bank bought a new position in shares of AbCellera Biologics in the fourth quarter valued at $3,764,000. Millennium Management LLC lifted its holdings in AbCellera Biologics by 96.7% during the 4th quarter. Millennium Management LLC now owns 1,482,715 shares of the company's stock valued at $4,344,000 after purchasing an additional 728,828 shares during the last quarter. Finally, Two Sigma Investments LP lifted its holdings in AbCellera Biologics by 28.6% during the 4th quarter. Two Sigma Investments LP now owns 3,257,311 shares of the company's stock valued at $9,544,000 after purchasing an additional 723,676 shares during the last quarter. 61.42% of the stock is owned by institutional investors.

AbCellera Biologics Stock Performance

The firm has a fifty day simple moving average of $3.81 and a 200-day simple moving average of $2.97. The firm has a market cap of $1.27 billion, a price-to-earnings ratio of -7.73 and a beta of 0.65.

About AbCellera Biologics

AbCellera Biologics Inc builds an engine for antibody drug discovery and development. Its engine discovers antibodies from natural immune responses, which are pre-enriched for antibodies. The company's preclinical products are ABCL635 for metabolic and endocrine conditions; and ABCL575 for atopic dermatitis.