Agios Pharmaceuticals (NASDAQ:AGIO) Shares Gap Down on Disappointing Earnings

Key Points

• Agios Pharmaceuticals shares fell sharply after the company reported quarterly EPS of ($1.69), missing the consensus estimate of ($1.65). The stock opened at $29.48 versus a prior close of $35.01 and was last trading around $31.80.
• Revenue totaled $44.75 million, substantially exceeding analysts’ expectations of $26.39 million, although the company reported a negative 34.11% return on equity and a negative 639.84% net margin.
• Analyst sentiment remains mixed: five analysts rate the stock Buy, four rate it Hold, and one rates it Sell. The consensus rating is Hold, with an average price target of $40.00.

Agios Pharmaceuticals, Inc. (NASDAQ:AGIO - Get Free Report) gapped down prior to trading on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $35.01, but opened at $29.48. Agios Pharmaceuticals shares last traded at $31.7950, with a volume of 692,857 shares traded.

The biopharmaceutical company reported ($1.69) EPS for the quarter, missing the consensus estimate of ($1.65) by ($0.04). Agios Pharmaceuticals had a negative return on equity of 34.11% and a negative net margin of 639.84%.The company had revenue of $44.75 million for the quarter, compared to analysts' expectations of $26.39 million.

Wall Street Analysts Forecast Growth

A number of brokerages have commented on AGIO. HC Wainwright reduced their target price on shares of Agios Pharmaceuticals from $54.00 to $52.00 and set a "buy" rating on the stock in a research note on Tuesday, July 21st. Weiss Ratings reissued a "sell (d)" rating on shares of Agios Pharmaceuticals in a research note on Wednesday, June 24th. The Goldman Sachs Group raised their price target on shares of Agios Pharmaceuticals from $28.00 to $32.00 and gave the stock a "neutral" rating in a report on Wednesday, April 1st. Royal Bank Of Canada lifted their price target on shares of Agios Pharmaceuticals from $28.00 to $32.00 and gave the company a "sector perform" rating in a research report on Tuesday, July 7th. Finally, Bank of America lifted their price target on shares of Agios Pharmaceuticals from $40.00 to $46.00 and gave the company a "buy" rating in a research report on Tuesday, July 7th. Five analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has given a Sell rating to the company's stock. According to MarketBeat.com, the company presently has an average rating of "Hold" and a consensus price target of $40.00.

Institutional Trading of Agios Pharmaceuticals

Several institutional investors and hedge funds have recently bought and sold shares of the stock. SG Americas Securities LLC increased its position in shares of Agios Pharmaceuticals by 68.0% during the fourth quarter. SG Americas Securities LLC now owns 46,451 shares of the biopharmaceutical company's stock valued at $1,264,000 after acquiring an additional 18,801 shares during the last quarter. GW&K Investment Management LLC raised its stake in shares of Agios Pharmaceuticals by 41.5% in the 4th quarter. GW&K Investment Management LLC now owns 1,207,301 shares of the biopharmaceutical company's stock valued at $32,863,000 after acquiring an additional 354,359 shares during the period. Erste Asset Management GmbH raised its stake in shares of Agios Pharmaceuticals by 1.4% in the 4th quarter. Erste Asset Management GmbH now owns 2,804,900 shares of the biopharmaceutical company's stock valued at $76,343,000 after acquiring an additional 40,000 shares during the period. State of New Jersey Common Pension Fund D acquired a new position in shares of Agios Pharmaceuticals in the 4th quarter worth approximately $1,291,000. Finally, Seven Fleet Capital Management LP acquired a new position in shares of Agios Pharmaceuticals in the 4th quarter worth approximately $864,000.

Agios Pharmaceuticals Trading Down 10.6%

The stock has a market capitalization of $1.86 billion, a price-to-earnings ratio of -4.32 and a beta of 0.54. The firm's fifty day moving average price is $34.37 and its 200 day moving average price is $30.86.

About Agios Pharmaceuticals

Agios Pharmaceuticals, Inc is a biopharmaceutical company founded in 2008 as a spin-out from research at Dana-Farber Cancer Institute and the Broad Institute. Headquartered in Cambridge, Massachusetts, Agios focuses on understanding and targeting cellular metabolism to develop novel therapies for cancer and rare genetic diseases. The company's scientific platform integrates genomic discovery, metabolic profiling and precision medicine approaches to identify and advance small-molecule candidates that correct or exploit metabolic dysfunction.

Agios's lead products are IDH (isocitrate dehydrogenase) inhibitors that target specific cancer mutations.

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