Barclays Downgrades Sarepta Therapeutics (NASDAQ:SRPT) to Strong Sell

Key Points

• Barclays has reaffirmed an "underweight" rating for Sarepta Therapeutics (NASDAQ:SRPT), with a price target of $10.00, indicating a potential decline of 19.88% from its current price.
• Multiple analysts have downgraded their ratings and price targets for Sarepta, with Mizuho setting a new target of $14.00, down from $40.00, reflecting mounting skepticism about the company's prospects.
• Sarepta reported a significant earnings miss, with a loss of ($3.42) per share against an expectation of $2.20, despite achieving a year-over-year revenue increase of 80.2% to $744.86 million.

Barclays lowered shares of Sarepta Therapeutics (NASDAQ:SRPT - Free Report) from a hold rating to a strong sell rating in a research note issued to investors on Monday morning, Marketbeat reports.

Several other equities analysts have also recently commented on SRPT. Citigroup started coverage on shares of Sarepta Therapeutics in a research report on Tuesday, July 22nd. They set a "sell" rating on the stock. Oppenheimer reduced their price target on shares of Sarepta Therapeutics from $45.00 to $41.00 and set an "outperform" rating on the stock in a research report on Friday, July 18th. Leerink Partners reaffirmed a "market perform" rating on shares of Sarepta Therapeutics in a research report on Monday, July 21st. Needham & Company LLC reaffirmed an "underperform" rating on shares of Sarepta Therapeutics in a research report on Monday. Finally, Wells Fargo & Company reduced their price target on shares of Sarepta Therapeutics from $65.00 to $48.00 and set an "overweight" rating on the stock in a research report on Thursday, July 24th. Six investment analysts have rated the stock with a sell rating, sixteen have assigned a hold rating and eight have given a buy rating to the company. According to MarketBeat.com, Sarepta Therapeutics presently has an average rating of "Hold" and a consensus target price of $49.12.

Sarepta Therapeutics Stock Up 0.4%

Shares of NASDAQ SRPT traded up $0.07 during midday trading on Monday, reaching $16.82. 10,579,663 shares of the company's stock were exchanged, compared to its average volume of 5,722,513. Sarepta Therapeutics has a 52-week low of $10.41 and a 52-week high of $145.00. The stock has a market capitalization of $1.65 billion, a PE ratio of -6.27 and a beta of 0.45. The company has a debt-to-equity ratio of 1.00, a quick ratio of 2.46 and a current ratio of 4.02. The business's fifty day moving average price is $24.69 and its two-hundred day moving average price is $62.20.

Sarepta Therapeutics (NASDAQ:SRPT - Get Free Report) last issued its quarterly earnings results on Tuesday, May 6th. The biotechnology company reported ($3.42) EPS for the quarter, missing the consensus estimate of $2.20 by ($5.62). Sarepta Therapeutics had a negative return on equity of 14.88% and a negative net margin of 11.12%. The company had revenue of $744.86 million for the quarter, compared to the consensus estimate of $685.75 million. During the same period in the previous year, the business posted $0.73 EPS. The business's revenue for the quarter was up 80.2% on a year-over-year basis. Analysts forecast that Sarepta Therapeutics will post 2.67 EPS for the current year.

Hedge Funds Weigh In On Sarepta Therapeutics

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. Capital International Investors grew its position in Sarepta Therapeutics by 38.9% in the 4th quarter. Capital International Investors now owns 8,697,137 shares of the biotechnology company's stock valued at $1,057,482,000 after buying an additional 2,437,855 shares in the last quarter. Farallon Capital Management LLC grew its position in Sarepta Therapeutics by 11.1% in the 4th quarter. Farallon Capital Management LLC now owns 2,865,100 shares of the biotechnology company's stock valued at $348,368,000 after buying an additional 285,100 shares in the last quarter. Wellington Management Group LLP grew its position in Sarepta Therapeutics by 27.9% in the 1st quarter. Wellington Management Group LLP now owns 2,646,619 shares of the biotechnology company's stock valued at $168,907,000 after buying an additional 577,848 shares in the last quarter. T. Rowe Price Investment Management Inc. raised its position in Sarepta Therapeutics by 2.1% in the first quarter. T. Rowe Price Investment Management Inc. now owns 1,997,991 shares of the biotechnology company's stock worth $127,512,000 after acquiring an additional 41,408 shares in the last quarter. Finally, Geode Capital Management LLC raised its position in Sarepta Therapeutics by 0.6% in the fourth quarter. Geode Capital Management LLC now owns 1,706,353 shares of the biotechnology company's stock worth $207,538,000 after acquiring an additional 9,999 shares in the last quarter. Institutional investors own 86.68% of the company's stock.

Sarepta Therapeutics Company Profile

Sarepta Therapeutics, Inc, a commercial-stage biopharmaceutical company, focuses on the discovery and development of RNA-targeted therapeutics, gene therapies, and other genetic therapeutic modalities for the treatment of rare diseases. It offers EXONDYS 51 injection to treat duchenne muscular dystrophy (duchenne) in patients with confirmed mutation of the dystrophin gene that is amenable to exon 51 skipping; VYONDYS 53 for the treatment of duchenne in patients with confirmed mutation of the dystrophin gene that is amenable to exon 53 skipping; AMONDYS 45 for the treatment of duchenne in patients with confirmed mutation of the dystrophin gene; and ELEVIDYS, an adeno-associated virus based gene therapy for the treatment of ambulatory pediatric patients aged 4 through 5 years with duchenne with a confirmed mutation in the duchenne gene.