Royal Bank Of Canada Issues Pessimistic Forecast for Nuvation Bio (NYSE:NUVB) Stock Price

Key Points

• Royal Bank of Canada cut its Nuvation Bio price target to $17 from $20 but maintained an “outperform” rating; the new target still implies 289% upside from the prior close.
• Analyst sentiment is broadly positive: Nuvation has a “Moderate Buy” consensus rating from 12 analysts, with an average price target of $12.89.
• Third-quarter revenue of $44.95 million exceeded estimates, while the company’s $0.12-per-share loss matched consensus. IBTROZI product revenue was $27.5 million, up 18% sequentially.

Nuvation Bio (NYSE:NUVB - Get Free Report) had its price target lowered by analysts at Royal Bank Of Canada from $20.00 to $17.00 in a research report issued on Thursday, Benzinga reports. The firm presently has an "outperform" rating on the stock. Royal Bank Of Canada's price objective indicates a potential upside of 289.46% from the stock's previous close.

Other equities research analysts also recently issued research reports about the company. JPMorgan Chase & Co. initiated coverage on Nuvation Bio in a report on Tuesday, August 18th. They set an "overweight" rating and a $13.00 target price for the company. Cantor Fitzgerald assumed coverage on shares of Nuvation Bio in a report on Friday, August 21st. They issued an "overweight" rating on the stock. Citizens Jmp reissued a "market outperform" rating and set a $10.00 price target on shares of Nuvation Bio in a research report on Wednesday, September 16th. Weiss Ratings restated a "sell (d-)" rating on shares of Nuvation Bio in a research note on Thursday, October 15th. Finally, Wedbush reaffirmed an "outperform" rating and issued a $11.00 price objective on shares of Nuvation Bio in a report on Wednesday, September 16th. Nine research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average target price of $12.89.

Nuvation Bio Stock Performance

Nuvation Bio stock traded down $0.36 during mid-day trading on Thursday, reaching $4.37. 5,518,583 shares of the company traded hands, compared to its average volume of 5,496,138. The firm's fifty day moving average is $5.50 and its two-hundred day moving average is $5.39. The company has a market capitalization of $1.53 billion, a price-to-earnings ratio of -9.95 and a beta of 1.73. Nuvation Bio has a fifty-two week low of $4.05 and a fifty-two week high of $9.75. The company has a debt-to-equity ratio of 0.96, a current ratio of 8.37 and a quick ratio of 8.14.

Nuvation Bio (NYSE:NUVB - Get Free Report) last released its earnings results on Wednesday, November 4th. The company reported ($0.12) earnings per share (EPS) for the quarter, meeting the consensus estimate of ($0.12). The firm had revenue of $44.95 million for the quarter, compared to the consensus estimate of $34.39 million. Nuvation Bio had a negative return on equity of 46.59% and a negative net margin of 88.18%. On average, equities research analysts expect that Nuvation Bio will post -0.34 earnings per share for the current fiscal year.

Insider Activity at Nuvation Bio

In other news, insider Gary Hattersley sold 100,000 shares of Nuvation Bio stock in a transaction that occurred on Wednesday, August 19th. The shares were sold at an average price of $7.09, for a total transaction of $709,000.00. Following the completion of the transaction, the insider directly owned 100,000 shares of the company's stock, valued at $709,000. The trade was a 50.00% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 30.11% of the stock is owned by insiders.

Hedge Funds Weigh In On Nuvation Bio

Large investors have recently made changes to their positions in the company. Bank of New York Mellon Corp acquired a new position in Nuvation Bio during the second quarter worth $3,804,000. Arrowstreet Capital Limited Partnership lifted its holdings in Nuvation Bio by 75.6% during the first quarter. Arrowstreet Capital Limited Partnership now owns 1,439,357 shares of the company's stock valued at $6,175,000 after purchasing an additional 619,725 shares in the last quarter. Renaissance Technologies LLC acquired a new stake in shares of Nuvation Bio in the first quarter valued at about $2,399,000. Torray Investment Partners LLC acquired a new stake in shares of Nuvation Bio in the third quarter valued at about $1,539,000. Finally, NewEdge Advisors LLC grew its position in shares of Nuvation Bio by 19.5% in the second quarter. NewEdge Advisors LLC now owns 1,231,733 shares of the company's stock valued at $6,996,000 after purchasing an additional 200,621 shares during the period. 61.67% of the stock is currently owned by institutional investors and hedge funds.

Key Nuvation Bio News

Here are the key news stories impacting Nuvation Bio this week:

• Positive Sentiment: Third-quarter revenue was $45.0 million, above the $34.39 million analyst estimate. IBTROZI net product revenue was $27.5 million, with sales up 18% sequentially; the company said the drug leads the ROS1 market in new patient starts and active patients. Company earnings release
• Positive Sentiment: The FDA approved an IBTROZI label update reflecting a 49.7-month median duration of response in TKI-naïve patients, and granted Fast Track Designation to safusidenib for IDH1-mutant glioma. Nuvation Bio also reported $663.4 million in cash, equivalents and marketable securities at quarter-end. Company earnings release
• Positive Sentiment: The company outlined the possibility of European approval for IBTROZI in the first half of next year, which could bring an approximately $30 million milestone payment. European approval and milestone outlook
• Negative Sentiment: Nuvation Bio reported a loss of $0.12 per share. That matched one consensus estimate but was slightly worse than Zacks’ estimate of a $0.11 loss, although the loss narrowed from $0.16 a year earlier. Zacks earnings report
• Negative Sentiment: B. Riley lowered its price target to $13 from $14, while maintaining its Buy rating. The reduced target may have tempered investor sentiment despite the continued positive rating. B. Riley price target update

About Nuvation Bio

Nuvation Bio, Inc is a biopharmaceutical company focused on discovering, developing and commercializing medicines for patients with cancer. The company seeks to address areas of significant unmet need, with an emphasis on targeted therapies for solid tumors.

Nuvation Bio's lead product is taletrectinib, a next-generation tyrosine kinase inhibitor designed for patients with ROS1-positive non-small cell lung cancer (NSCLC), including certain tumors that have developed resistance to earlier ROS1-targeted treatments.

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