Cytokinetics (NASDAQ:CYTK) Downgraded to Sell Rating by Wall Street Zen

Key Points

• Wall Street Zen downgraded Cytokinetics to “sell,” contrasting with the broader analyst consensus of “Moderate Buy,” based on 19 Buy, one Hold and one Sell rating. The average analyst price target is $102.20.
• Cytokinetics shares fell $5.81 to $72.09, despite the company beating quarterly EPS and revenue estimates; revenue still declined 57.1% year over year.
• The company reported positive Phase 3 ACACIA-HCM results for aficamten and plans to submit a supplemental FDA application in the fourth quarter, potentially expanding the drug’s market to non-obstructive hypertrophic cardiomyopathy.

Cytokinetics (NASDAQ:CYTK - Get Free Report) was downgraded by investment analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a research note issued to investors on Saturday.

A number of other research analysts also recently issued reports on the company. Barclays lifted their price target on Cytokinetics from $95.00 to $110.00 and gave the company an "overweight" rating in a report on Thursday, August 13th. Citigroup restated a "market outperform" rating on shares of Cytokinetics in a research note on Friday, August 7th. UBS Group upgraded Cytokinetics from a "neutral" rating to a "buy" rating and lifted their target price for the company from $69.00 to $115.00 in a research note on Monday, June 29th. HC Wainwright reissued a "buy" rating on shares of Cytokinetics in a research report on Friday, August 14th. Finally, Needham & Company LLC raised their price target on shares of Cytokinetics from $102.00 to $112.00 and gave the company a "buy" rating in a report on Friday, August 7th. Nineteen analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $102.20.

Cytokinetics Price Performance

Shares of NASDAQ:CYTK traded down $5.81 during trading hours on Friday, hitting $72.09. The company's stock had a trading volume of 4,361,458 shares, compared to its average volume of 1,790,370. Cytokinetics has a 52 week low of $35.22 and a 52 week high of $88.31. The company has a market capitalization of $8.97 billion, a price-to-earnings ratio of -9.98 and a beta of 0.38. The firm's fifty day moving average price is $80.12 and its 200 day moving average price is $72.23.

Cytokinetics (NASDAQ:CYTK - Get Free Report) last released its quarterly earnings data on Thursday, August 6th. The biopharmaceutical company reported ($1.50) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($1.63) by $0.13. The business had revenue of $28.62 million for the quarter, compared to the consensus estimate of $17.59 million. Cytokinetics's revenue for the quarter was down 57.1% on a year-over-year basis. During the same quarter in the prior year, the business posted ($1.12) earnings per share. On average, equities research analysts predict that Cytokinetics will post -6 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, EVP Andrew Callos sold 14,000 shares of the stock in a transaction that occurred on Thursday, July 30th. The shares were sold at an average price of $79.88, for a total value of $1,118,320.00. Following the completion of the transaction, the executive vice president directly owned 58,555 shares of the company's stock, valued at $4,677,373.40. This trade represents a 19.30% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Robert I. Blum sold 7,500 shares of Cytokinetics stock in a transaction that occurred on Monday, August 10th. The stock was sold at an average price of $76.76, for a total transaction of $575,700.00. Following the completion of the sale, the chief executive officer owned 377,820 shares of the company's stock, valued at $29,001,463.20. This trade represents a 1.95% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 111,179 shares of company stock worth $8,803,649 in the last three months. Insiders own 2.60% of the company's stock.

Institutional Investors Weigh In On Cytokinetics

Several institutional investors and hedge funds have recently made changes to their positions in CYTK. Bank of Montreal Can increased its position in shares of Cytokinetics by 1.2% in the 4th quarter. Bank of Montreal Can now owns 13,292 shares of the biopharmaceutical company's stock valued at $845,000 after acquiring an additional 160 shares during the period. Kennedy Capital Management LLC lifted its position in Cytokinetics by 1.2% during the 4th quarter. Kennedy Capital Management LLC now owns 13,183 shares of the biopharmaceutical company's stock worth $838,000 after acquiring an additional 162 shares during the period. Northwestern Mutual Wealth Management Co. lifted its position in Cytokinetics by 46.0% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 543 shares of the biopharmaceutical company's stock worth $35,000 after acquiring an additional 171 shares during the period. Vident Advisory LLC grew its stake in Cytokinetics by 1.4% during the 4th quarter. Vident Advisory LLC now owns 16,455 shares of the biopharmaceutical company's stock valued at $1,046,000 after purchasing an additional 234 shares during the last quarter. Finally, CIBC Private Wealth Group LLC grew its stake in Cytokinetics by 6.9% during the 4th quarter. CIBC Private Wealth Group LLC now owns 3,723 shares of the biopharmaceutical company's stock valued at $237,000 after purchasing an additional 239 shares during the last quarter.

Cytokinetics News Summary

Here are the key news stories impacting Cytokinetics this week:

• Positive Sentiment: Cytokinetics reported that the Phase 3 ACACIA-HCM trial met both primary endpoints. Aficamten produced statistically significant improvements versus placebo in patients’ Kansas City Cardiomyopathy Questionnaire scores and maximal exercise capacity after 36 weeks. Cytokinetics Announces Positive Results from ACACIA-HCM
• Positive Sentiment: The results represent a potentially important regulatory and commercial milestone: ACACIA-HCM is described as the first Phase 3 trial in non-obstructive HCM to demonstrate statistically significant improvements across both patient-reported and physician-assessed outcomes. Cytokinetics plans to submit a supplemental New Drug Application to the FDA in the fourth quarter. Cytokinetics eyes expanded use of heart drug
• Positive Sentiment: Presentations at the European Society of Cardiology Congress and simultaneous publication in The New England Journal of Medicine provide prominent external visibility for aficamten. Approval in non-obstructive HCM could materially broaden the drug’s addressable market, as the condition currently has no approved treatments. ACACIA-HCM results published and presented
• Neutral Sentiment: The company is hosting an investor webcast to discuss the findings, giving analysts an opportunity to assess the trial’s detailed efficacy, safety, labeling prospects and commercial opportunity. ACACIA-HCM trial discussion transcript
• Negative Sentiment: Despite the positive data, CYTK shares fell as investors appeared to lock in gains or judge the results insufficient relative to elevated expectations and the company’s sizeable valuation. The reaction indicates that the market may already have priced in a successful trial, leaving regulatory approval, launch execution and the eventual commercial uptake of aficamten as the next catalysts. CYTK shares slip despite positive results

About Cytokinetics

Cytokinetics, Inc is a late‐stage biopharmaceutical company focused on the discovery and development of novel small‐molecule therapeutics that modulate muscle function. Founded in 1998 and headquartered in South San Francisco, California, the company applies its proprietary insights in muscle biology to address diseases characterized by impaired muscle performance. Its research spans both cardiac and skeletal muscle targets, aiming to deliver innovative medicines for conditions with significant unmet medical need.

The company's most advanced program, omecamtiv mecarbil, is being evaluated for the treatment of heart failure by enhancing cardiac muscle contractility.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

Continue following MarketBeat

Add MarketBeat as your preferred source on Google to see our latest stories in your feed.

Add As Preferred Source