Wall Street Zen Downgrades Edgewise Therapeutics (NASDAQ:EWTX) to Sell

Key Points

• Wall Street Zen downgraded Edgewise Therapeutics to “sell” from “hold,” although the broader analyst consensus remains “Moderate Buy” with a $51.33 target price.
• Edgewise shares opened at $39.34, down 4.4%, and recently reported a quarterly loss of $0.53 per share, missing the $0.47 consensus estimate.
• Insiders sold 238,329 shares worth approximately $9.56 million over the past 90 days, though the disclosed executive sales were intended to cover tax withholding obligations tied to equity awards.

Edgewise Therapeutics (NASDAQ:EWTX - 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 on Saturday, Wall Street Zen reports.

EWTX has been the subject of several other reports. Evercore reiterated an "outperform" rating and issued a $55.00 target price on shares of Edgewise Therapeutics in a report on Monday, July 20th. Guggenheim boosted their price target on shares of Edgewise Therapeutics from $41.00 to $51.00 and gave the company a "buy" rating in a report on Monday, July 6th. Leerink Partners set a $52.00 price target on shares of Edgewise Therapeutics in a research report on Tuesday, June 16th. Royal Bank Of Canada upped their price target on shares of Edgewise Therapeutics from $48.00 to $59.00 and gave the company an "outperform" rating in a research report on Wednesday, June 17th. Finally, Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Edgewise Therapeutics in a research note on Friday, July 17th. One investment analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating, one has given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus target price of $51.33.

Edgewise Therapeutics Stock Down 4.4%

Shares of NASDAQ EWTX opened at $39.34 on Friday. Edgewise Therapeutics has a 12 month low of $14.25 and a 12 month high of $48.51. The company has a market cap of $4.27 billion, a price-to-earnings ratio of -21.26 and a beta of 0.32. The business has a fifty day simple moving average of $42.83 and a 200-day simple moving average of $37.59.

Edgewise Therapeutics (NASDAQ:EWTX - Get Free Report) last issued its quarterly earnings results on Thursday, August 6th. The company reported ($0.53) earnings per share for the quarter, missing analysts' consensus estimates of ($0.47) by ($0.06). As a group, sell-side analysts expect that Edgewise Therapeutics will post -2.09 EPS for the current fiscal year.

Insiders Place Their Bets

In other Edgewise Therapeutics news, General Counsel John R. Moore sold 5,016 shares of the firm's stock in a transaction dated Wednesday, August 12th. The stock was sold at an average price of $43.82, for a total transaction of $219,801.12. Following the completion of the sale, the general counsel directly owned 17,697 shares in the company, valued at approximately $775,482.54. This trade represents a 22.08% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Kevin Koch sold 17,971 shares of Edgewise Therapeutics stock in a transaction dated Wednesday, August 12th. The shares were sold at an average price of $43.68, for a total value of $784,973.28. Following the transaction, the chief executive officer directly owned 52,488 shares in the company, valued at approximately $2,292,675.84. This trade represents a 25.51% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 238,329 shares of company stock valued at $9,557,529 in the last 90 days. Insiders own 21.30% of the company's stock.

Institutional Inflows and Outflows

Several large investors have recently added to or reduced their stakes in the stock. Parallel Advisors LLC raised its stake in shares of Edgewise Therapeutics by 64.9% during the 1st quarter. Parallel Advisors LLC now owns 1,032 shares of the company's stock worth $33,000 after purchasing an additional 406 shares in the last quarter. KBC Group NV bought a new stake in shares of Edgewise Therapeutics in the 1st quarter valued at approximately $49,000. Seven Fleet Capital Management LP bought a new stake in shares of Edgewise Therapeutics in the 4th quarter valued at approximately $50,000. Strs Ohio acquired a new position in Edgewise Therapeutics in the first quarter worth approximately $217,000. Finally, Squarepoint Ops LLC acquired a new position in Edgewise Therapeutics in the second quarter worth approximately $230,000.

Edgewise Therapeutics Company Profile

Edgewise Therapeutics, Inc is a clinical-stage biotechnology company focused on developing small-molecule medicines for severe muscle disorders. The company's research is centered on therapies intended to address the biological mechanisms that contribute to muscle damage and impaired function in diseases affecting skeletal and cardiac muscle.

Edgewise's lead program is sevasemten (also known as EDG-5506), an orally administered investigational therapy designed to reduce contraction-related muscle injury by selectively modulating fast skeletal muscle contractility.

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