Arvinas (NASDAQ:ARVN) Downgraded by Bank of America to "Neutral"

Key Points

• Arvinas' stock has been downgraded by Bank of America from a "buy" rating to a "neutral" rating, with a new price target set at $10.00, suggesting a potential upside of 32.80% from its current price.
• The company reported a net loss of $0.84 EPS for the last quarter, which exceeded analyst expectations, but its revenue fell significantly by 70.7% compared to the same period last year.
• Arvinas has announced a $100 million share buyback plan approved by its Board of Directors, signaling management's belief that the stock is currently undervalued.

Arvinas (NASDAQ:ARVN - Get Free Report) was downgraded by investment analysts at Bank of America from a "buy" rating to a "neutral" rating in a note issued to investors on Wednesday, MarketBeat reports. They presently have a $10.00 price objective on the stock. Bank of America's price objective indicates a potential upside of 32.80% from the company's current price.

Several other analysts have also issued reports on ARVN. Guggenheim dropped their target price on shares of Arvinas from $16.00 to $15.00 and set a "buy" rating on the stock in a research report on Thursday, August 7th. HC Wainwright reduced their target price on shares of Arvinas from $24.00 to $18.00 and set a "buy" rating on the stock in a research note on Thursday, August 7th. Wells Fargo & Company reduced their price target on shares of Arvinas from $19.00 to $16.00 and set an "overweight" rating on the stock in a research note on Thursday, August 7th. Wedbush reissued a "neutral" rating and issued a $9.00 price target (down from $10.00) on shares of Arvinas in a research note on Thursday, September 18th. Finally, Leerink Partners reaffirmed a "market perform" rating and set a $9.00 price objective (down previously from $10.00) on shares of Arvinas in a research report on Monday, June 2nd. One analyst has rated the stock with a Strong Buy rating, ten have assigned a Buy rating and eleven have given a Hold rating to the company. According to data from MarketBeat, Arvinas currently has an average rating of "Moderate Buy" and an average price target of $16.18.

Arvinas Price Performance

Shares of Arvinas stock opened at $7.53 on Wednesday. The firm has a fifty day moving average price of $7.48 and a 200 day moving average price of $7.60. Arvinas has a 1 year low of $5.90 and a 1 year high of $29.61. The stock has a market cap of $552.85 million, a PE ratio of -7.46 and a beta of 2.38.

Arvinas (NASDAQ:ARVN - Get Free Report) last issued its earnings results on Wednesday, August 6th. The company reported ($0.84) earnings per share (EPS) for the quarter, topping the consensus estimate 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 firm's revenue was down 70.7% compared to the same quarter last year. During the same quarter last year, the company posted ($0.49) earnings per share. As a group, equities analysts expect that Arvinas will post -3.81 EPS for the current year.

Arvinas announced that its Board of Directors has approved a share buyback plan on Wednesday, September 17th that permits the company to repurchase $100.00 million in outstanding shares. This repurchase authorization permits the company to repurchase up to 17.9% of its shares through open market purchases. Shares repurchase plans are generally an indication that the company's management believes its stock is undervalued.

Hedge Funds Weigh In On Arvinas

A number of large investors have recently bought and sold shares of ARVN. GF Fund Management CO. LTD. purchased a new position in Arvinas during the 4th quarter worth $28,000. Caitong International Asset Management Co. Ltd increased its holdings in shares of Arvinas by 965.4% in the 1st quarter. Caitong International Asset Management Co. Ltd now owns 4,656 shares of the company's stock valued at $33,000 after purchasing an additional 4,219 shares in the last quarter. Tower Research Capital LLC TRC increased its holdings in shares of Arvinas by 491.4% in the 2nd quarter. Tower Research Capital LLC TRC now owns 5,819 shares of the company's stock valued at $43,000 after purchasing an additional 4,835 shares in the last quarter. Canada Pension Plan Investment Board increased its holdings in shares of Arvinas by 109.4% in the 2nd quarter. Canada Pension Plan Investment Board now owns 6,700 shares of the company's stock valued at $49,000 after purchasing an additional 3,500 shares in the last quarter. Finally, CWM LLC increased its holdings in shares of Arvinas by 2,317.5% in the 1st quarter. CWM LLC now owns 7,615 shares of the company's stock valued at $53,000 after purchasing an additional 7,300 shares in the last quarter. Hedge funds and other institutional investors own 95.19% of the company's stock.

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.

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