Share Buyback Plan Announced by Arvinas (NASDAQ:ARVN)

Key Points

• Arvinas' Board of Directors has approved a $100 million stock repurchase plan, allowing the company to buy back up to 17.9% of its shares, signaling confidence in the stock's value.
• The company's recent earnings report showed a net loss with a negative 70.7% year-over-year revenue decline, posting $22.4 million in revenue against expectations of $34.42 million.
• Analysts have varying opinions on Arvinas, with price targets ranging from $9.00 to $18.00, reflecting a consensus rating of "Moderate Buy."

Arvinas (NASDAQ:ARVN - Get Free Report) announced that its Board of Directors has authorized a share repurchase program on Wednesday, September 17th, RTT News reports. The company plans to buyback $100.00 million in shares. This buyback authorization allows the company to repurchase up to 17.9% of its shares through open market purchases. Shares buyback programs are often an indication that the company's management believes its shares are undervalued.

Analyst Ratings Changes

A number of research analysts have commented on the company. Leerink Partnrs cut Arvinas from a "strong-buy" rating to a "hold" rating in a research note on Sunday, June 1st. Stephens decreased their target price on shares of Arvinas from $16.00 to $14.00 and set an "overweight" rating for the company in a research note on Thursday. HC Wainwright decreased their target price on shares of Arvinas from $24.00 to $18.00 and set a "buy" rating for the company in a research note on Thursday, August 7th. Leerink Partners restated a "market perform" rating and issued a $9.00 target price (down from $10.00) on shares of Arvinas in a research note on Monday, June 2nd. Finally, BTIG Research decreased their target price on shares of Arvinas from $16.00 to $10.00 and set a "buy" rating for the company in a research note on Thursday. One analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and ten have issued a Hold rating to the stock. According to MarketBeat, Arvinas presently has an average rating of "Moderate Buy" and a consensus price target of $17.13.

Arvinas Trading Down 2.6%

NASDAQ ARVN traded down $0.20 during trading on Friday, reaching $7.52. The company's stock had a trading volume of 3,445,050 shares, compared to its average volume of 1,471,559. The stock has a market capitalization of $552.12 million, a PE ratio of -7.45 and a beta of 2.38. The business has a 50-day moving average price of $7.48 and a 200-day moving average price of $7.82. Arvinas has a 1-year low of $5.90 and a 1-year high of $29.61.

Arvinas (NASDAQ:ARVN - Get Free Report) last posted its earnings results on Wednesday, August 6th. The company reported ($0.84) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.87) by $0.03. The firm had revenue of $22.40 million during the quarter, compared to analysts' expectations of $34.42 million. Arvinas had a negative net margin of 19.47% and a negative return on equity of 12.01%. The company's revenue was down 70.7% compared to the same quarter last year. During the same period in the previous year, the company earned ($0.49) earnings per share. As a group, analysts expect that Arvinas will post -3.81 earnings per share for the current year.

Insider Activity at Arvinas

In other news, CFO Andrew Saik sold 5,700 shares of Arvinas stock in a transaction that occurred on Tuesday, June 24th. The shares were sold at an average price of $7.61, for a total value of $43,377.00. Following the transaction, the chief financial officer owned 164,401 shares of the company's stock, valued at $1,251,091.61. This trade represents a 3.35% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. 4.73% of the stock is currently owned by corporate insiders.

About Arvinas

Arvinas, Inc, a clinical-stage biotechnology company, engages in the discovery, development, and commercialization of therapies to degrade disease-causing proteins. The company engineers proteolysis targeting chimeras (PROTAC) targeted protein degraders that are designed to harness the body's own natural protein disposal system to degrade and remove disease-causing proteins.