Annexon (NASDAQ:ANNX) Shares Gap Down on Disappointing Earnings

Key Points

• Annexon shares fell at the open after the company reported a quarterly loss of $0.28 per share, missing the $0.23 consensus estimate. The stock opened at $5.06 versus a prior close of $5.34.
• Analyst sentiment remains mixed but leans cautious, with recent “sell” and “market underperform” ratings. The consensus rating is “Hold,” with an average price target of $15.33.
• Director Muneer A. Satter purchased 613,497 shares worth about $3.3 million, while institutional investors including Redmile Group and Dimensional Fund Advisors increased their positions.

Annexon, Inc. (NASDAQ:ANNX - Get Free Report) gapped down before the market opened on Wednesday following a weaker than expected earnings announcement. The stock had previously closed at $5.34, but opened at $5.06. Annexon shares last traded at $5.3650, with a volume of 607,735 shares.

The company reported ($0.28) earnings per share for the quarter, missing the consensus estimate of ($0.23) by ($0.05).

Analysts Set New Price Targets

Several analysts have recently weighed in on ANNX shares. Wall Street Zen downgraded shares of Annexon from a "hold" rating to a "sell" rating in a research note on Sunday, July 12th. Weiss Ratings restated a "sell (d-)" rating on shares of Annexon in a report on Friday, July 17th. The Goldman Sachs Group began coverage on shares of Annexon in a research report on Tuesday, May 12th. They set a "neutral" rating and a $7.00 price target for the company. Citigroup assumed coverage on Annexon in a report on Tuesday, July 21st. They set a "market underperform" rating for the company. Finally, Citizens Jmp began coverage on Annexon in a research report on Tuesday, July 21st. They issued a "market underperform" rating and a $3.00 price objective for the company. Five equities research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and three have given a Sell rating to the stock. According to MarketBeat.com, the stock has an average rating of "Hold" and a consensus price target of $15.33.

Insider Buying and Selling at Annexon

In related news, Director Muneer A. Satter acquired 613,497 shares of the company's stock in a transaction dated Thursday, May 28th. The shares were purchased at an average cost of $5.41 per share, with a total value of $3,319,018.77. Following the completion of the acquisition, the director directly owned 10,342,134 shares of the company's stock, valued at $55,950,944.94. This represents a 6.31% increase in their ownership of the stock. The acquisition was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. 10.31% of the stock is owned by company insiders.

Institutional Trading of Annexon

Several large investors have recently added to or reduced their stakes in the company. Y Intercept Hong Kong Ltd purchased a new stake in shares of Annexon in the 1st quarter valued at $7,312,000. Siren L.L.C. purchased a new position in shares of Annexon during the first quarter worth $21,931,000. Redmile Group LLC lifted its position in Annexon by 44.8% during the first quarter. Redmile Group LLC now owns 14,549,768 shares of the company's stock valued at $80,606,000 after purchasing an additional 4,499,124 shares during the period. Swiss National Bank acquired a new position in Annexon during the first quarter valued at $1,307,000. Finally, Dimensional Fund Advisors LP boosted its holdings in Annexon by 28.6% in the first quarter. Dimensional Fund Advisors LP now owns 924,078 shares of the company's stock valued at $5,115,000 after purchasing an additional 205,398 shares during the last quarter.

Annexon Trading Up 0.5%

The firm has a 50-day simple moving average of $5.35 and a two-hundred day simple moving average of $5.54. The company has a market capitalization of $879.02 million, a price-to-earnings ratio of -4.41 and a beta of 1.18.

Annexon Company Profile

Annexon Inc is a clinical-stage biotechnology company focused on the discovery and development of complement-targeted therapies for patients with neurodegenerative and neuroimmune diseases. The company's research platform centers on the inhibition of the C1 complex, a key initiator of the classical complement pathway implicated in several rare and life-threatening disorders. By selectively targeting upstream complement activation, Annexon aims to prevent the aberrant immune-mediated damage that characterizes conditions such as Guillain-Barré syndrome (GBS) and autoimmune neuropathies.

At the core of Annexon's pipeline is ANX005, a humanized monoclonal antibody directed against the C1q subcomponent, currently in Phase 2 clinical trials for acute GBS and chronic neurodegenerative indications.

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