Arvinas (NASDAQ:ARVN) Shares Gap Down - Should You Sell?

Key Points

• Shares gapped down — Arvinas opened at $10.02 after a prior close of $10.51 and last traded around $10.82 on a volume of ~394,353 shares, showing intraday volatility.
• Big quarterly miss — the company reported EPS of ($1.10) vs. ($0.55) expected and revenue of $9.5M vs. $37.26M expected, with revenue down 84% year-over-year and negative margins/ROE.
• Analyst sentiment is mixed: 10 Buys, 5 Holds and 3 Sells yield a consensus "Hold" rating and an average price target of $14.31.

Arvinas, Inc. (NASDAQ:ARVN - Get Free Report)'s stock price gapped down before the market opened on Monday . The stock had previously closed at $10.51, but opened at $10.02. Arvinas shares last traded at $10.8210, with a volume of 394,353 shares traded.

Wall Street Analyst Weigh In

ARVN has been the topic of a number of research reports. Wall Street Zen downgraded Arvinas from a "hold" rating to a "sell" rating in a research note on Monday, March 2nd. BTIG Research raised their price target on Arvinas from $14.00 to $16.00 and gave the stock a "buy" rating in a research note on Thursday, March 19th. Zacks Research downgraded Arvinas from a "hold" rating to a "strong sell" rating in a research note on Monday, April 27th. Truist Financial set a $10.00 target price on Arvinas in a research note on Wednesday, March 18th. Finally, Piper Sandler reiterated an "overweight" rating and issued a $20.00 target price (up from $16.00) on shares of Arvinas in a research note on Wednesday, February 25th. Ten analysts have rated the stock with a Buy rating, five have given a Hold rating and three have issued a Sell rating to the company's stock. According to MarketBeat.com, Arvinas has a consensus rating of "Hold" and an average price target of $14.31.

Arvinas Trading Up 2.9%

The firm has a 50 day simple moving average of $11.54 and a two-hundred day simple moving average of $11.66. The company has a market capitalization of $691.73 million, a PE ratio of -8.46 and a beta of 1.79.

Arvinas (NASDAQ:ARVN - Get Free Report) last announced its earnings results on Tuesday, February 24th. The company reported ($1.10) earnings per share for the quarter, missing the consensus estimate of ($0.55) by ($0.55). Arvinas had a negative net margin of 30.77% and a negative return on equity of 14.25%. The company had revenue of $9.50 million during the quarter, compared to analysts' expectations of $37.26 million. During the same quarter last year, the business posted ($0.63) earnings per share. The company's revenue for the quarter was down 84.0% compared to the same quarter last year. Research analysts expect that Arvinas, Inc. will post -3.26 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, CFO Andrew Saik sold 5,134 shares of the firm's stock in a transaction that occurred on Friday, February 13th. The stock was sold at an average price of $11.89, for a total value of $61,043.26. Following the completion of the sale, the chief financial officer directly owned 159,267 shares of the company's stock, valued at $1,893,684.63. This trade represents a 3.12% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, Director Briggs Morrison purchased 20,000 shares of Arvinas stock in a transaction dated Friday, March 6th. The stock was acquired at an average cost of $13.40 per share, with a total value of $268,000.00. Following the completion of the acquisition, the director directly owned 96,021 shares in the company, valued at approximately $1,286,681.40. This trade represents a 26.31% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Over the last ninety days, insiders sold 63,864 shares of company stock worth $802,443. Corporate insiders own 4.73% of the company's stock.

Hedge Funds Weigh In On Arvinas

Several hedge funds and other institutional investors have recently bought and sold shares of the company. Nordea Investment Management AB increased its position in Arvinas by 28.7% during the third quarter. Nordea Investment Management AB now owns 557,742 shares of the company's stock worth $4,730,000 after buying an additional 124,254 shares in the last quarter. Campbell & CO Investment Adviser LLC lifted its position in Arvinas by 307.7% during the third quarter. Campbell & CO Investment Adviser LLC now owns 223,576 shares of the company's stock worth $1,905,000 after buying an additional 168,744 shares during the period. JPMorgan Chase & Co. lifted its position in Arvinas by 475.5% during the third quarter. JPMorgan Chase & Co. now owns 214,779 shares of the company's stock worth $1,830,000 after buying an additional 177,460 shares during the period. Hussman Strategic Advisors Inc. purchased a new position in Arvinas during the fourth quarter worth about $1,245,000. Finally, BML Capital Management LLC purchased a new position in Arvinas during the third quarter worth about $426,000. 95.19% of the stock is owned by institutional investors and hedge funds.

Arvinas Company Profile

Arvinas, Inc NASDAQ: ARVN is a biopharmaceutical company focused on the development of therapies based on targeted protein degradation. Utilizing its proprietary proteolysis-targeting chimera (PROTAC®) platform, Arvinas aims to selectively eliminate disease-causing proteins rather than merely inhibit their activity. This novel approach has the potential to address a range of diseases, including oncology, neurodegeneration and inflammation, by harnessing the body's natural protein-recycling systems.

The company's most advanced clinical candidates address hormone-driven cancers.

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