Crinetics Pharmaceuticals' (CRNX) "Hold" Rating Reiterated at Jefferies Financial Group

Key Points

• Jefferies Financial Group reiterated its Hold rating on Crinetics Pharmaceuticals and raised its price target to $85 from $55, implying only limited upside from the current share price.
• CRNX shares surged sharply, trading near a 52-week high after the company agreed to be acquired by Vertex for $85 per share in cash, valuing the deal at roughly $10 billion.
• Analyst views remain mixed, with some firms turning more constructive while others stayed neutral or bearish; meanwhile, hedge funds and other institutions own the vast majority of shares, and shareholder-law investigations have been announced in response to the deal.

Crinetics Pharmaceuticals (NASDAQ:CRNX - Get Free Report)'s stock had its "hold" rating reissued by investment analysts at Jefferies Financial Group in a research report issued to clients and investors on Tuesday,Benzinga reports. They presently have a $85.00 target price on the stock, up from their prior target price of $55.00. Jefferies Financial Group's price target suggests a potential upside of 1.75% from the company's current price.

Several other equities research analysts have also recently commented on CRNX. Wall Street Zen raised shares of Crinetics Pharmaceuticals from a "strong sell" rating to a "sell" rating in a research report on Sunday, May 17th. HC Wainwright reissued a "neutral" rating and issued a $85.00 price target (up from $81.00) on shares of Crinetics Pharmaceuticals in a research note on Tuesday. Citizens Jmp restated a "market outperform" rating and issued a $95.00 price objective on shares of Crinetics Pharmaceuticals in a report on Thursday, June 11th. UBS Group assumed coverage on Crinetics Pharmaceuticals in a research report on Thursday, July 2nd. They set a "buy" rating and a $55.00 price objective on the stock. Finally, Weiss Ratings reiterated a "sell (d-)" rating on shares of Crinetics Pharmaceuticals in a report on Monday, April 20th. One equities research analyst has rated the stock with a Strong Buy rating, seven have given a Buy rating, four have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, Crinetics Pharmaceuticals presently has an average rating of "Moderate Buy" and an average target price of $77.60.

Crinetics Pharmaceuticals Stock Up 98.8%

Shares of CRNX stock traded up $41.51 during trading on Tuesday, hitting $83.53. The company had a trading volume of 62,357,986 shares, compared to its average volume of 1,758,528. The stock's 50-day moving average is $36.77 and its two-hundred day moving average is $41.51. The stock has a market capitalization of $8.81 billion, a price-to-earnings ratio of -16.29 and a beta of 0.23. Crinetics Pharmaceuticals has a 52 week low of $25.83 and a 52 week high of $83.59.

Crinetics Pharmaceuticals (NASDAQ:CRNX - Get Free Report) last issued its quarterly earnings results on Thursday, May 7th. The company reported ($1.23) earnings per share (EPS) for the quarter, missing the consensus estimate of ($1.22) by ($0.01). The firm had revenue of $10.73 million for the quarter, compared to the consensus estimate of $8.51 million. Crinetics Pharmaceuticals had a negative return on equity of 43.96% and a negative net margin of 2,747.18%.The company's revenue for the quarter was up 2873.4% on a year-over-year basis. During the same period last year, the firm earned ($1.04) EPS. On average, research analysts predict that Crinetics Pharmaceuticals will post -4.86 EPS for the current fiscal year.

Insider Activity

In related news, insider Jeff E. Knight sold 85,163 shares of Crinetics Pharmaceuticals stock in a transaction on Wednesday, April 8th. The stock was sold at an average price of $40.10, for a total value of $3,415,036.30. Following the completion of the sale, the insider owned 105,289 shares of the company's stock, valued at $4,222,088.90. The trade was a 44.72% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Stephanie Okey sold 6,900 shares of the company's stock in a transaction on Wednesday, June 17th. The shares were sold at an average price of $35.67, for a total value of $246,123.00. Following the sale, the director owned 6,400 shares of the company's stock, valued at approximately $228,288. This trade represents a 51.88% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 3.80% of the stock is currently owned by insiders.

Institutional Trading of Crinetics Pharmaceuticals

A number of hedge funds and other institutional investors have recently bought and sold shares of CRNX. Wellington Management Group LLP grew its stake in Crinetics Pharmaceuticals by 44.3% during the third quarter. Wellington Management Group LLP now owns 8,381,991 shares of the company's stock valued at $349,110,000 after acquiring an additional 2,574,683 shares in the last quarter. Farallon Capital Management LLC lifted its stake in Crinetics Pharmaceuticals by 20.2% in the 4th quarter. Farallon Capital Management LLC now owns 6,933,098 shares of the company's stock worth $322,736,000 after purchasing an additional 1,163,000 shares in the last quarter. Janus Henderson Group PLC lifted its stake in Crinetics Pharmaceuticals by 1.8% in the 1st quarter. Janus Henderson Group PLC now owns 4,520,251 shares of the company's stock worth $164,227,000 after purchasing an additional 79,560 shares in the last quarter. Paradigm Biocapital Advisors LP boosted its holdings in shares of Crinetics Pharmaceuticals by 8.8% during the 3rd quarter. Paradigm Biocapital Advisors LP now owns 2,550,774 shares of the company's stock valued at $106,240,000 after purchasing an additional 207,221 shares during the last quarter. Finally, Siren L.L.C. boosted its holdings in shares of Crinetics Pharmaceuticals by 26.3% during the 1st quarter. Siren L.L.C. now owns 1,903,636 shares of the company's stock valued at $69,140,000 after purchasing an additional 396,000 shares during the last quarter. Hedge funds and other institutional investors own 98.51% of the company's stock.

Crinetics Pharmaceuticals News Roundup

Here are the key news stories impacting Crinetics Pharmaceuticals this week:

• Positive Sentiment: Vertex agreed to acquire Crinetics Pharmaceuticals for $85.00 per share in cash, valuing the company at roughly $10 billion and likely setting a near-term floor near the deal price. Vertex to Acquire Crinetics Pharmaceuticals
• Positive Sentiment: Analyst coverage turned more constructive, with Robert W. Baird raising its price target to $85 and reiterating an outperform rating, reinforcing the takeover valuation. Benzinga coverage of Robert W. Baird update
• Neutral Sentiment: Cantor Fitzgerald and HC Wainwright both reiterated neutral views, indicating the stock is now largely trading on deal terms rather than on standalone fundamentals. Benzinga analyst updates
• Neutral Sentiment: Law firms Brodsky & Smith, Ademi LLP, and Halper Sadeh announced investigations into whether Crinetics’ board secured a fair price for shareholders, which could create headline risk but does not change the announced deal. Brodsky & Smith investigation

Crinetics Pharmaceuticals Company Profile

Crinetics Pharmaceuticals, Inc is a clinical-stage biopharmaceutical company focused on the discovery, development and commercialization of novel therapeutics for rare endocrine diseases. The company's proprietary platform leverages insights into hormone receptor signaling to design small-molecule candidates that address conditions driven by dysregulated hormone activity. Crinetics' research efforts center on targeting somatostatin, vasopressin and other GPCR-mediated pathways with orally bioavailable molecules intended to improve patient convenience and adherence.

The company's lead product candidate, paltusotine (formerly CRN04777), is a selective, non-peptide somatostatin receptor type 2 agonist being evaluated for the treatment of acromegaly and carcinoid syndrome diarrhea.

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