ADC Therapeutics (NYSE:ADCT) Receives "Buy" Rating from HC Wainwright

Key Points

• HC Wainwright reiterated a Buy on ADC Therapeutics with an $8.00 target implying roughly a 120% upside; MarketBeat's consensus is a Moderate Buy with a $7.67 target (three buys, one sell).
• Shares opened at $3.64 and trade near their 50/200‑day averages (~$4) with a market cap of $462M and a negative P/E; the company reported Q results with EPS of ($0.21) missing estimates while revenue of $20.85M beat, and analysts forecast FY EPS of -0.82.
• Major shareholder Redmile sold 2.63M shares in April (a 17.22% reduction) and insiders sold 5.88M shares worth $19.64M over the quarter, while institutions/hedge funds own about 41.10% of the stock.

ADC Therapeutics (NYSE:ADCT - Get Free Report)'s stock had its "buy" rating restated by stock analysts at HC Wainwright in a research note issued on Tuesday,Benzinga reports. They currently have a $8.00 target price on the stock. HC Wainwright's target price would suggest a potential upside of 120.08% from the company's current price.

Separately, Weiss Ratings reissued a "sell (d-)" rating on shares of ADC Therapeutics in a research report on Monday, April 20th. Three research analysts have rated the stock with a Buy rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $7.67.

ADC Therapeutics Price Performance

ADC Therapeutics stock opened at $3.64 on Tuesday. The firm's 50 day simple moving average is $4.04 and its 200-day simple moving average is $3.96. The company has a market cap of $462.34 million, a P/E ratio of -3.03 and a beta of 1.83. ADC Therapeutics has a fifty-two week low of $1.23 and a fifty-two week high of $4.98.

ADC Therapeutics (NYSE:ADCT - Get Free Report) last released its earnings results on Monday, May 4th. The company reported ($0.21) earnings per share for the quarter, missing the consensus estimate of ($0.19) by ($0.02). The firm had revenue of $20.85 million for the quarter, compared to analyst estimates of $19.99 million. During the same quarter in the prior year, the business posted ($0.36) earnings per share. On average, analysts expect that ADC Therapeutics will post -0.82 EPS for the current fiscal year.

Insider Buying and Selling

In related news, major shareholder Redmile Group, Llc sold 2,634,506 shares of the business's stock in a transaction that occurred on Thursday, April 2nd. The shares were sold at an average price of $3.28, for a total transaction of $8,641,179.68. Following the transaction, the insider directly owned 12,666,731 shares of the company's stock, valued at approximately $41,546,877.68. The trade was a 17.22% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Insiders have sold 5,880,415 shares of company stock worth $19,641,067 over the last quarter. Insiders own 5.40% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in the stock. R Squared Ltd purchased a new position in ADC Therapeutics during the first quarter valued at approximately $38,000. Engineers Gate Manager LP purchased a new position in ADC Therapeutics during the fourth quarter valued at approximately $43,000. AQR Capital Management LLC grew its position in ADC Therapeutics by 42.2% during the fourth quarter. AQR Capital Management LLC now owns 206,576 shares of the company's stock valued at $729,000 after purchasing an additional 61,324 shares in the last quarter. Cantor Fitzgerald L. P. purchased a new position in ADC Therapeutics during the fourth quarter valued at approximately $353,000. Finally, Jump Financial LLC grew its position in ADC Therapeutics by 1,299.8% during the fourth quarter. Jump Financial LLC now owns 162,250 shares of the company's stock valued at $573,000 after purchasing an additional 150,659 shares in the last quarter. 41.10% of the stock is owned by hedge funds and other institutional investors.

ADC Therapeutics Company Profile

ADC Therapeutics SA is a clinical-stage biopharmaceutical company focused on the discovery and development of highly targeted antibody-drug conjugates (ADCs) designed to treat hematological malignancies such as non-Hodgkin lymphoma and acute myeloid leukemia. By marrying the specificity of monoclonal antibodies with potent cytotoxic payloads, the company aims to maximize tumor cell eradication while limiting off-target toxicity.

At the core of ADC Therapeutics' portfolio is loncastuximab tesirine-lpyl, a CD19-directed ADC that received accelerated approval from the U.S.

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