William Blair Downgrades Ultragenyx Pharmaceutical (NASDAQ:RARE) to Market Perform

Key Points

• William Blair downgraded Ultragenyx Pharmaceutical to “Market Perform” from “Outperform,” joining JPMorgan and other firms that recently lowered their ratings or price targets after the company’s Angelman syndrome trial failure.
• Despite the downgrades, analysts maintain a consensus “Moderate Buy” rating, with an average price target of $46.53 versus the referenced share price of $26.53.
• Ultragenyx reported better-than-expected quarterly results, including a $0.90 adjusted loss per share versus the anticipated $1.22 loss and revenue of $214 million, up 28.5% year over year.

Ultragenyx Pharmaceutical (NASDAQ:RARE - Get Free Report) was downgraded by stock analysts at William Blair from an "outperform" rating to a "market perform" rating in a report released on Thursday, Briefing.com reports.

RARE has been the topic of several other research reports. Guggenheim decreased their price objective on Ultragenyx Pharmaceutical from $43.00 to $35.00 and set a "buy" rating on the stock in a research note on Tuesday, August 4th. Cantor Fitzgerald reduced their target price on shares of Ultragenyx Pharmaceutical from $103.00 to $33.00 and set an "overweight" rating for the company in a report on Thursday. HC Wainwright decreased their target price on shares of Ultragenyx Pharmaceutical from $50.00 to $25.00 and set a "buy" rating on the stock in a research note on Thursday. JPMorgan Chase & Co. downgraded shares of Ultragenyx Pharmaceutical from an "overweight" rating to a "neutral" rating and set a $36.00 price target on the stock. in a report on Thursday. Finally, Canaccord Genuity Group upped their price target on shares of Ultragenyx Pharmaceutical from $81.00 to $83.00 and gave the stock a "buy" rating in a research report on Thursday, August 20th. One equities research analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating, seven have assigned a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, Ultragenyx Pharmaceutical presently has a consensus rating of "Moderate Buy" and an average price target of $46.53.

Ultragenyx Pharmaceutical Price Performance

NASDAQ:RARE opened at $26.53 on Thursday. Ultragenyx Pharmaceutical has a one year low of $18.29 and a one year high of $39.89. The business has a fifty day moving average price of $28.36 and a 200-day moving average price of $25.08. The firm has a market capitalization of $2.62 billion, a price-to-earnings ratio of -4.54 and a beta of 0.31.

Ultragenyx Pharmaceutical (NASDAQ:RARE - Get Free Report) last released its earnings results on Tuesday, August 4th. The biopharmaceutical company reported ($0.90) earnings per share for the quarter, beating the consensus estimate 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 company had revenue of $214.00 million for the quarter, compared to the consensus estimate of $183.08 million. During the same period in the previous year, the business earned ($1.17) earnings per share. Ultragenyx Pharmaceutical's quarterly revenue was up 28.5% compared to the same quarter last year. On average, equities research analysts expect that Ultragenyx Pharmaceutical will post -3.97 earnings per share for the current fiscal year.

Insider Activity

In related news, Director Corazon (Corsee) D. Sanders sold 2,000 shares of Ultragenyx Pharmaceutical stock in a transaction that occurred on 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 owned 21,095 shares of the company's stock, valued at approximately $528,429.75. This trade represents a 8.66% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, EVP Karah Herdman Parschauer sold 1,899 shares of the business's stock in a transaction that occurred on Monday, June 15th. The stock was sold at an average price of $24.62, for a total value of $46,753.38. Following the completion of the transaction, the executive vice president directly owned 94,462 shares in the company, valued at approximately $2,325,654.44. This represents a 1.97% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Company insiders own 5.20% of the company's stock.

Hedge Funds Weigh In On Ultragenyx Pharmaceutical

Several institutional investors have recently bought and sold shares of RARE. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its stake in Ultragenyx Pharmaceutical by 14.8% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 232,360 shares of the biopharmaceutical company's stock worth $8,414,000 after purchasing an additional 29,984 shares in the last quarter. Creative Planning bought a new position in shares of Ultragenyx Pharmaceutical during the 2nd quarter valued at about $454,000. American Century Companies Inc. purchased a new position in shares of Ultragenyx Pharmaceutical during the second quarter valued at about $366,000. M&T Bank Corp grew its position in shares of Ultragenyx Pharmaceutical by 19.7% during the second quarter. M&T Bank Corp now owns 7,232 shares of the biopharmaceutical company's stock valued at $263,000 after purchasing an additional 1,192 shares in the last quarter. Finally, Amundi increased its holdings in shares of Ultragenyx Pharmaceutical by 1,560.4% in the second quarter. Amundi now owns 99,161 shares of the biopharmaceutical company's stock worth $3,913,000 after purchasing an additional 93,189 shares during the last quarter. 97.67% of the stock is owned by hedge funds and other institutional investors.

Key Ultragenyx Pharmaceutical News

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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