Crinetics Pharmaceuticals (NASDAQ:CRNX) Rating Lowered to Hold at Evercore

Key Points

• Evercore downgraded Crinetics Pharmaceuticals from “strong-buy” to “hold,” adding to a wave of softer analyst sentiment around the stock. Several other firms also moved to hold, and the current consensus rating is now “Hold” with a price target of $78.27.
• Shares were trading near their 52-week high at $83.49, while the company’s market cap stood at $8.8 billion. The stock’s recent rally appears to have pushed valuation higher, which may be contributing to the cautious ratings.
• Insider sales and mixed fundamentals are weighing on sentiment. The company posted a quarterly EPS loss of $1.23, beat revenue estimates at $10.73 million, and saw two directors sell shares under 10b5-1 plans.

Crinetics Pharmaceuticals (NASDAQ:CRNX - Get Free Report) was downgraded by Evercore from a "strong-buy" rating to a "hold" rating in a research report issued on Tuesday,Zacks.com reports.

A number of other equities research analysts have also commented on CRNX. Piper Sandler lowered Crinetics Pharmaceuticals from a "strong-buy" rating to a "hold" rating in a research report on Tuesday. Oppenheimer reaffirmed a "market perform" rating on shares of Crinetics Pharmaceuticals in a research report on Tuesday. TD Cowen reissued a "hold" rating on shares of Crinetics Pharmaceuticals in a research note on Wednesday. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Crinetics Pharmaceuticals in a research note on Monday, April 20th. Finally, Lifesci Capital cut Crinetics Pharmaceuticals from a "strong-buy" rating to a "hold" rating in a research report on Tuesday. Six research analysts have rated the stock with a Buy rating, ten have issued a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, Crinetics Pharmaceuticals presently has a consensus rating of "Hold" and a consensus price target of $78.27.

Crinetics Pharmaceuticals Stock Down 0.0%

Shares of NASDAQ:CRNX opened at $83.49 on Tuesday. Crinetics Pharmaceuticals has a fifty-two week low of $25.83 and a fifty-two week high of $83.63. The company has a market cap of $8.80 billion, a PE ratio of -16.27 and a beta of 0.23. The firm has a 50-day simple moving average of $38.57 and a 200 day simple moving average of $42.03.

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

Insider Buying and Selling

In related news, Director Coelho Rogerio Vivaldi sold 3,000 shares of Crinetics Pharmaceuticals stock in a transaction dated Thursday, July 2nd. The stock was sold at an average price of $40.00, for a total value of $120,000.00. Following the completion of the sale, the director directly owned 19,225 shares in the company, valued at $769,000. This trade represents a 13.50% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Stephanie Okey sold 6,900 shares of Crinetics Pharmaceuticals stock in a transaction that occurred on Wednesday, June 17th. The stock was sold at an average price of $35.67, for a total transaction of $246,123.00. Following the transaction, the director directly owned 6,400 shares in the company, valued at $228,288. The trade was a 51.88% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Corporate insiders own 3.80% of the company's stock.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently made changes to their positions in the stock. First Light Asset Management LLC lifted its stake in Crinetics Pharmaceuticals by 9.0% in the 3rd quarter. First Light Asset Management LLC now owns 941,516 shares of the company's stock valued at $39,214,000 after acquiring an additional 77,380 shares in the last quarter. JPMorgan Chase & Co. lifted its position in shares of Crinetics Pharmaceuticals by 279.2% in the third quarter. JPMorgan Chase & Co. now owns 1,258,722 shares of the company's stock worth $52,426,000 after purchasing an additional 926,765 shares in the last quarter. Aberdeen Group plc lifted its position in shares of Crinetics Pharmaceuticals by 98.4% in the fourth quarter. Aberdeen Group plc now owns 674,533 shares of the company's stock worth $31,400,000 after purchasing an additional 334,584 shares in the last quarter. Farallon Capital Management LLC boosted its holdings in Crinetics Pharmaceuticals by 24.2% during the third quarter. Farallon Capital Management LLC now owns 5,770,098 shares of the company's stock worth $240,325,000 after purchasing an additional 1,124,000 shares during the last quarter. Finally, Sector Gamma AS bought a new position in Crinetics Pharmaceuticals in the fourth quarter valued at $5,353,000. Institutional investors and hedge funds 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’s $85-per-share cash acquisition gives CRNX holders a firm takeout price and validates the company’s rare-disease franchise. Article Title
• Positive Sentiment: The deal highlights the commercial value of PALSONIFY and the upside in Atumelnant, reinforcing Crinetics’ strategic appeal. Article Title
• Positive Sentiment: Several firms have lifted targets or reiterated bullish views near the deal price, suggesting limited downside unless the transaction changes. Article Title
• Neutral Sentiment: TD Cowen issued a “Hold” rating, while other brokers also moved to hold, signaling that the stock may already be close to fair value under the acquisition terms. Article Title
• Neutral Sentiment: An investor-alert law firm announced an investigation into the fairness of the proposed sale process, which adds legal headline risk but does not necessarily change the deal economics. Article Title
• Negative Sentiment: Multiple analyst downgrades to “Hold” and an insider sale are weighing on sentiment around the stock’s post-rally valuation. Article Title

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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