Arvinas (NASDAQ:ARVN) Downgraded by The Goldman Sachs Group to "Sell"

Key Points

• The Goldman Sachs Group downgraded Arvinas (NASDAQ:ARVN) from a "neutral" rating to a "sell" rating, setting a target price of $6.00, indicating a potential downside of 36.58% from its previous close.
• Arvinas reported a significant earnings decline with a revenue drop of 70.7% year-over-year and a net margin of -19.47%, contrasting with analysts' expectations.
• Despite the downgrade, the company's Board approved a $100 million stock repurchase program, suggesting confidence in the stock’s long-term value.

Arvinas (NASDAQ:ARVN - Get Free Report) was downgraded by analysts at The Goldman Sachs Group from a "neutral" rating to a "sell" rating in a note issued to investors on Wednesday, MarketBeat.com reports. They presently have a $6.00 target price on the stock. The Goldman Sachs Group's price target points to a potential downside of 36.58% from the stock's previous close.

Other research analysts have also issued reports about the stock. Barclays assumed coverage on shares of Arvinas in a research note on Wednesday, September 17th. They issued an "overweight" rating and a $16.00 price objective on the stock. BTIG Research dropped their price objective on shares of Arvinas from $16.00 to $10.00 and set a "buy" rating on the stock in a research note on Thursday, September 18th. Stephens dropped their price target on shares of Arvinas from $16.00 to $14.00 and set an "overweight" rating on the stock in a research report on Thursday, September 18th. Bank of America lowered shares of Arvinas from a "buy" rating to a "neutral" rating and set a $10.00 price target on the stock. in a research report on Wednesday, September 24th. Finally, Weiss Ratings reissued a "sell (e+)" rating on shares of Arvinas in a research report on Wednesday, October 8th. One analyst has rated the stock with a Strong Buy rating, ten have given a Buy rating, ten have issued a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat.com, the company currently has an average rating of "Hold" and an average target price of $16.18.

Arvinas Trading Up 0.5%

NASDAQ:ARVN opened at $9.46 on Wednesday. Arvinas has a 12 month low of $5.90 and a 12 month high of $29.61. The stock has a market capitalization of $694.53 million, a price-to-earnings ratio of -9.37 and a beta of 2.39. The firm has a fifty day simple moving average of $7.97 and a two-hundred day simple moving average of $7.62.

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

Arvinas announced that its Board of Directors has approved a stock repurchase program on Wednesday, September 17th that authorizes the company to repurchase $100.00 million in outstanding shares. This repurchase authorization authorizes the company to reacquire up to 17.9% of its shares through open market purchases. Shares repurchase programs are typically an indication that the company's board believes its stock is undervalued.

Insider Buying and Selling

In related news, Director Briggs Morrison acquired 30,000 shares of the stock in a transaction on Monday, September 22nd. The shares were acquired at an average price of $7.57 per share, with a total value of $227,100.00. Following the completion of the transaction, the director owned 76,021 shares in the company, valued at approximately $575,478.97. The trade was a 65.19% increase in their position. The purchase was disclosed in a legal filing with the SEC, which is accessible through this link. Corporate insiders own 4.73% of the company's stock.

Institutional Trading of Arvinas

Several hedge funds have recently added to or reduced their stakes in ARVN. GAMMA Investing LLC raised its position in Arvinas by 11,283.8% in the first quarter. GAMMA Investing LLC now owns 4,212 shares of the company's stock worth $300,000 after acquiring an additional 4,175 shares during the period. Rhumbline Advisers increased its stake in shares of Arvinas by 3.8% in the first quarter. Rhumbline Advisers now owns 91,210 shares of the company's stock worth $640,000 after purchasing an additional 3,333 shares in the last quarter. Exchange Traded Concepts LLC increased its stake in shares of Arvinas by 119.9% in the first quarter. Exchange Traded Concepts LLC now owns 14,642 shares of the company's stock worth $103,000 after purchasing an additional 7,983 shares in the last quarter. Allspring Global Investments Holdings LLC purchased a new position in shares of Arvinas in the first quarter worth about $80,000. Finally, New York State Common Retirement Fund increased its stake in shares of Arvinas by 19.0% in the first quarter. New York State Common Retirement Fund now owns 24,313 shares of the company's stock worth $171,000 after purchasing an additional 3,888 shares in the last quarter. Institutional investors own 95.19% of the company's stock.

Arvinas Company Profile

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.