Ultragenyx Pharmaceutical (NASDAQ:RARE) Downgraded to "Neutral" Rating by Bank of America

Key Points

• Bank of America downgraded Ultragenyx Pharmaceutical to “neutral” from “buy,” joining several analysts who lowered ratings and price targets after the company’s Angelman syndrome trial failure.
• Analysts’ targets were sharply reduced, including Canaccord Genuity’s cut to $37, JPMorgan’s $36 target, Wedbush’s $23 target and Robert W. Baird’s $16 target; MarketBeat still lists a consensus “moderate buy” rating with a $43.95 average target.
• Ultragenyx shares fell $11.66 to $14.87 in Thursday trading, near their 52-week low, despite quarterly revenue rising 28.5% year over year to $214 million and the company reporting a smaller-than-expected loss.

Ultragenyx Pharmaceutical (NASDAQ:RARE - Get Free Report) was downgraded by equities research analysts at Bank of America from a "buy" rating to a "neutral" rating in a report released on Thursday, Briefing.com reports.

RARE has been the subject of several other research reports. Canaccord Genuity Group reduced their target price on shares of Ultragenyx Pharmaceutical from $83.00 to $37.00 and set a "buy" rating for the company in a report on Thursday. JPMorgan Chase & Co. lowered Ultragenyx Pharmaceutical from an "overweight" rating to a "neutral" rating and set a $36.00 price objective on the stock. in a research report on Thursday. Robert W. Baird restated a "neutral" rating and issued a $16.00 price objective (down from $40.00) on shares of Ultragenyx Pharmaceutical in a report on Thursday. Wedbush cut their target price on Ultragenyx Pharmaceutical from $30.00 to $23.00 and set a "neutral" rating on the stock in a report on Thursday. Finally, Weiss Ratings raised shares of Ultragenyx Pharmaceutical from a "sell (e+)" rating to a "sell (d-)" rating in a research report on Thursday, July 9th. One investment analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating, eight have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average price target of $43.95.

Ultragenyx Pharmaceutical Price Performance

Shares of NASDAQ:RARE traded down $11.66 during midday trading on Thursday, reaching $14.87. The company's stock had a trading volume of 7,397,249 shares, compared to its average volume of 2,247,888. Ultragenyx Pharmaceutical has a fifty-two week low of $13.81 and a fifty-two week high of $39.89. The business's fifty day simple moving average is $28.36 and its 200-day simple moving average is $25.08. The company has a market capitalization of $1.47 billion, a P/E ratio of -2.53 and a beta of 0.31.

Ultragenyx Pharmaceutical (NASDAQ:RARE - Get Free Report) last announced its quarterly earnings data on Tuesday, August 4th. The biopharmaceutical company reported ($0.90) EPS for the quarter, beating analysts' consensus estimates of ($1.22) by $0.32. Ultragenyx Pharmaceutical had a negative return on equity of 1,024.42% and a negative net margin of 81.79%.The firm had revenue of $214.00 million for the quarter, compared to analyst estimates of $183.08 million. During the same period last year, the company earned ($1.17) EPS. The business's quarterly revenue was up 28.5% compared to the same quarter last year. On average, analysts forecast that Ultragenyx Pharmaceutical will post -3.97 earnings per share for the current fiscal year.

Insider Transactions at Ultragenyx Pharmaceutical

In other news, Director Corazon (Corsee) D. Sanders sold 2,000 shares of the company's stock in a transaction dated Monday, June 15th. The stock was sold at an average price of $25.05, for a total transaction of $50,100.00. Following the sale, the director directly owned 21,095 shares in the company, valued at $528,429.75. This represents a 8.66% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. Also, EVP Karah Herdman Parschauer sold 1,899 shares of Ultragenyx Pharmaceutical stock in a transaction on Monday, June 15th. The shares were sold at an average price of $24.62, for a total value of $46,753.38. Following the sale, the executive vice president directly owned 94,462 shares of the company's stock, valued at $2,325,654.44. This represents a 1.97% decrease in their position. The disclosure for this sale is available in the SEC filing. Corporate insiders own 5.20% of the company's stock.

Institutional Trading of Ultragenyx Pharmaceutical

A number of large investors have recently made changes to their positions in RARE. Parallel Advisors LLC increased its holdings in shares of Ultragenyx Pharmaceutical by 778.4% in the 1st quarter. Parallel Advisors LLC now owns 1,625 shares of the biopharmaceutical company's stock valued at $34,000 after acquiring an additional 1,440 shares during the period. Leonteq Securities AG grew its position in Ultragenyx Pharmaceutical by 288.5% during the 1st quarter. Leonteq Securities AG now owns 1,795 shares of the biopharmaceutical company's stock worth $38,000 after purchasing an additional 1,333 shares during the last quarter. Versant Capital Management Inc increased its stake in Ultragenyx Pharmaceutical by 662.9% during the 2nd quarter. Versant Capital Management Inc now owns 1,152 shares of the biopharmaceutical company's stock valued at $38,000 after purchasing an additional 1,001 shares in the last quarter. Danske Bank A S acquired a new position in shares of Ultragenyx Pharmaceutical in the 3rd quarter valued at $39,000. Finally, EverSource Wealth Advisors LLC raised its stake in Ultragenyx Pharmaceutical by 573.0% in the 1st quarter. EverSource Wealth Advisors LLC now owns 2,167 shares of the biopharmaceutical company's stock worth $45,000 after acquiring an additional 1,845 shares during the last quarter. 97.67% of the stock is owned by hedge funds and other institutional investors.

Ultragenyx Pharmaceutical News Summary

Here are the key news stories impacting Ultragenyx Pharmaceutical this week:

• Positive Sentiment: Ultragenyx reported encouraging 96-week data for GENGLYCOS™ (DTX401) in glycogen storage disease type Ia. Patients achieved an average 61% reduction in daily cornstarch intake while maintaining glycemic control, supporting the commercial and clinical potential of this program. GENGLYCOS trial publication
• Neutral Sentiment: Ultragenyx’s existing commercial business remains a focus for investors as the company evaluates cost reductions and seeks to offset the impact of the failed Angelman program. Analysts continue to recognize longer-term potential in its rare-disease portfolio, although near-term sentiment has deteriorated. Barron's analysis of Ultragenyx
• Negative Sentiment: The Phase 3 Aspire study of the company’s Angelman syndrome treatment did not achieve its primary endpoint, the change in Bayley-4 cognitive raw score, or its key secondary MDRI endpoint. The failure removes a major anticipated growth driver and raises questions about the value of the program. Ultragenyx Aspire Phase 3 results
• Negative Sentiment: Wells Fargo downgraded Ultragenyx from “overweight” to “equal weight” and set an $18 price target, implying substantial downside from the referenced price. Analyst coverage
• Negative Sentiment: JPMorgan downgraded the stock to “neutral,” while Robert W. Baird and Evercore moved their ratings to “neutral” or “in-line.” Baird cut its target to $16 from $40, and Evercore also set a $16 target, reinforcing the view that the trial failure materially reduced Ultragenyx’s valuation.

About Ultragenyx Pharmaceutical

Ultragenyx Pharmaceutical Inc is a biopharmaceutical company focused on developing and commercializing therapies for rare and ultra-rare genetic disorders. Since its founding in 2010 and headquarters in Novato, California, the company has built expertise in protein replacement therapies, small molecules and gene therapy approaches to address high-unmet medical needs. Ultragenyx applies a precision medicine model, leveraging both in-house research and strategic collaborations to advance its product pipeline from discovery through regulatory approval.

The company's commercial portfolio includes Crysvita (burosumab-tmyl) for X-linked hypophosphatemia, Mepsevii (vestronidase alfa-vjbk) for mucopolysaccharidosis VII and Dojolvi (triheptanoin) for long-chain fatty acid oxidation disorders.

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