Arvinas (NASDAQ:ARVN) Trading 14.8% Higher Following Better-Than-Expected Earnings

Key Points

• Arvinas shares surged 14.8% to about $9.25 after the company reported quarterly earnings of $2.58 per share, beating the consensus estimate by $2.95. Revenue reached $249.7 million, up 1,014.7% year over year and well above analyst expectations.
• Analyst sentiment remains mixed: eight analysts rate the stock a Buy, three rate it Hold and two rate it Sell, resulting in a consensus Hold rating with a $15.42 price target.
• Insiders sold shares primarily to cover tax obligations tied to vested equity awards, while institutional investors and hedge funds own approximately 95.19% of ARVN.

Arvinas, Inc. (NASDAQ:ARVN - Get Free Report)'s share price rose 14.8% during mid-day trading on Tuesday following a better than expected earnings announcement. The stock traded as high as $9.43 and last traded at $9.2520. Approximately 469,543 shares were traded during trading, a decline of 42% from the average session volume of 815,419 shares. The stock had previously closed at $8.06.

The company reported $2.58 earnings per share for the quarter, beating the consensus estimate of ($0.37) by $2.95. The company had revenue of $249.70 million for the quarter, compared to analyst estimates of $60.71 million. Arvinas had a negative return on equity of 44.38% and a negative net margin of 247.54%.The business's revenue was up 1014.7% compared to the same quarter last year. During the same period last year, the company earned ($0.84) earnings per share.

Wall Street Analysts Forecast Growth

Several brokerages have commented on ARVN. Wall Street Zen upgraded Arvinas from a "strong sell" rating to a "sell" rating in a report on Sunday, July 26th. Zacks Research upgraded shares of Arvinas from a "strong sell" rating to a "hold" rating in a research note on Tuesday, May 26th. Barclays upped their price objective on shares of Arvinas from $18.00 to $20.00 and gave the stock an "overweight" rating in a report on Wednesday, May 13th. Citigroup lifted their target price on shares of Arvinas from $21.00 to $24.00 and gave the stock a "buy" rating in a report on Monday, May 4th. Finally, BTIG Research lifted their target price on shares of Arvinas from $16.00 to $18.00 and gave the stock a "buy" rating in a report on Wednesday, May 13th. Eight analysts have rated the stock with a Buy rating, three have given a Hold rating and two have issued a Sell rating to the company's stock. According to data from MarketBeat, Arvinas currently has a consensus rating of "Hold" and a consensus price target of $15.42.

Insider Buying and Selling at Arvinas

In other news, CEO Randy Teel sold 9,657 shares of the company's stock in a transaction that occurred on Monday, May 11th. The stock was sold at an average price of $9.94, for a total transaction of $95,990.58. Following the completion of the transaction, the chief executive officer directly owned 287,218 shares in the company, valued at $2,854,946.92. The trade was a 3.25% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Noah Berkowitz sold 11,108 shares of the stock in a transaction that occurred on Monday, May 11th. The shares were sold at an average price of $9.94, for a total value of $110,413.52. Following the completion of the sale, the insider directly owned 191,395 shares of the company's stock, valued at $1,902,466.30. This represents a 5.49% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 41,728 shares of company stock valued at $402,649 in the last 90 days. 7.30% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Arvinas

Several large investors have recently bought and sold shares of ARVN. Assenagon Asset Management S.A. boosted its holdings in Arvinas by 138.2% in the 2nd quarter. Assenagon Asset Management S.A. now owns 68,456 shares of the company's stock valued at $569,000 after purchasing an additional 39,720 shares during the period. Quantinno Capital Management LP increased its holdings in shares of Arvinas by 12.5% during the 1st quarter. Quantinno Capital Management LP now owns 74,540 shares of the company's stock worth $790,000 after purchasing an additional 8,295 shares during the period. Weiss Asset Management LP bought a new position in shares of Arvinas during the 1st quarter worth about $385,000. Public Employees Retirement System of Ohio raised its position in shares of Arvinas by 876.1% during the first quarter. Public Employees Retirement System of Ohio now owns 97,611 shares of the company's stock valued at $1,035,000 after buying an additional 87,611 shares during the last quarter. Finally, Sei Investments Co. raised its position in shares of Arvinas by 160.7% during the first quarter. Sei Investments Co. now owns 78,587 shares of the company's stock valued at $833,000 after buying an additional 48,444 shares during the last quarter. 95.19% of the stock is currently owned by institutional investors and hedge funds.

Arvinas Price Performance

The company's 50 day moving average is $8.07 and its two-hundred day moving average is $10.32. The firm has a market cap of $593.26 million, a P/E ratio of -2.77 and a beta of 1.71.

About Arvinas

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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