ADC Therapeutics (NYSE:ADCT) Shares Gap Up After Strong Earnings

Key Points

• EPS beat: ADC reported Q EPS of ($0.09) versus consensus ($0.32), beating by $0.23, and the stock gapped up premarket (prior close $4.23, opened $4.54, last $4.405) and was up roughly 8.2%.
• Analysts are broadly constructive with a consensus rating of Moderate Buy and an average price target of $7.33 (three Buys, one Sell), with individual targets ranging from $5 (RBC) to $10 (Guggenheim).
• Institutional interest is notable—about 41.1% of the stock is owned by hedge funds and institutions, with recent meaningful stake increases by firms such as AQR, Panagora and Nantahala.

ADC Therapeutics SA (NYSE:ADCT - Get Free Report)'s share price gapped up prior to trading on Tuesday after the company announced better than expected quarterly earnings. The stock had previously closed at $4.23, but opened at $4.54. ADC Therapeutics shares last traded at $4.4050, with a volume of 121,450 shares changing hands.

The company reported ($0.09) EPS for the quarter, beating the consensus estimate of ($0.32) by $0.23.

Wall Street Analysts Forecast Growth

A number of brokerages recently commented on ADCT. Royal Bank Of Canada reissued an "outperform" rating and set a $5.00 price target on shares of ADC Therapeutics in a research note on Wednesday, December 3rd. Guggenheim reiterated a "buy" rating and set a $10.00 price target on shares of ADC Therapeutics in a research report on Wednesday, November 12th. Wall Street Zen upgraded ADC Therapeutics from a "sell" rating to a "hold" rating in a research report on Saturday, November 15th. Finally, Weiss Ratings restated a "sell (d-)" rating on shares of ADC Therapeutics in a report on Wednesday, January 21st. Three analysts have rated the stock with a Buy rating and one has issued a Sell rating to the company. According to MarketBeat, ADC Therapeutics has a consensus rating of "Moderate Buy" and a consensus price target of $7.33.

Institutional Trading of ADC Therapeutics

A number of institutional investors have recently bought and sold shares of the business. AQR Capital Management LLC raised its holdings in ADC Therapeutics by 411.1% during the first quarter. AQR Capital Management LLC now owns 201,170 shares of the company's stock worth $284,000 after purchasing an additional 161,808 shares in the last quarter. Creative Planning acquired a new stake in shares of ADC Therapeutics during the 2nd quarter worth $96,000. Panagora Asset Management Inc. lifted its stake in shares of ADC Therapeutics by 400.8% in the 2nd quarter. Panagora Asset Management Inc. now owns 271,359 shares of the company's stock valued at $727,000 after purchasing an additional 217,173 shares in the last quarter. Stempoint Capital LP purchased a new stake in shares of ADC Therapeutics during the second quarter worth about $759,000. Finally, Nantahala Capital Management LLC purchased a new position in shares of ADC Therapeutics during the 2nd quarter valued at approximately $6,074,000. 41.10% of the stock is owned by hedge funds and other institutional investors.

ADC Therapeutics Stock Up 8.2%

The business has a 50 day simple moving average of $3.87 and a 200-day simple moving average of $3.86. The company has a market capitalization of $566.75 million, a P/E ratio of -3.04 and a beta of 1.91.

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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