Crinetics Pharmaceuticals Target of Unusually Large Options Trading (NASDAQ:CRNX)

Key Points

• Crinetics Pharmaceuticals (NASDAQ:CRNX) saw unusually heavy options activity on Thursday, with traders buying 2,077 call options — about 499% above normal volume.
• Several analysts recently downgraded the stock to Hold, and the consensus rating is now Hold with an average price target of $78.27.
• The shares were trading near $83.58, close to the 52-week high and above the average analyst target, while recent earnings showed revenue growth but continued losses.

Crinetics Pharmaceuticals, Inc. (NASDAQ:CRNX - Get Free Report) was the target of some unusual options trading on Thursday. Stock traders bought 2,077 call options on the company. This is an increase of approximately 499% compared to the typical volume of 347 call options.

Analysts Set New Price Targets

A number of research analysts have issued reports on the stock. JonesTrading downgraded shares of Crinetics Pharmaceuticals from a "buy" rating to a "hold" rating and set a $85.00 price objective on the stock. in a research report on Tuesday. Jefferies Financial Group cut shares of Crinetics Pharmaceuticals from a "buy" rating to a "hold" rating and raised their target price for the stock from $55.00 to $85.00 in a research report on Tuesday. Evercore lowered shares of Crinetics Pharmaceuticals from a "strong-buy" rating to a "hold" rating in a research note on Tuesday. Lifesci Capital cut shares of Crinetics Pharmaceuticals from a "strong-buy" rating to a "hold" rating in a research report on Tuesday. Finally, Weiss Ratings reissued a "sell (d-)" rating on shares of Crinetics Pharmaceuticals in a research note on Monday, April 20th. Six analysts have rated the stock with a Buy rating, ten have issued a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the stock presently has an average rating of "Hold" and an average target price of $78.27.

Crinetics Pharmaceuticals Price Performance

Shares of Crinetics Pharmaceuticals stock traded up $0.09 during trading on Thursday, hitting $83.58. 4,063,316 shares of the company's stock traded hands, compared to its average volume of 2,040,895. Crinetics Pharmaceuticals has a 1 year low of $25.83 and a 1 year high of $83.63. The stock has a market capitalization of $8.81 billion, a P/E ratio of -16.29 and a beta of 0.23. The business 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 released its quarterly earnings results on Thursday, May 7th. The company reported ($1.23) earnings per share (EPS) for the quarter, missing analysts' consensus estimates 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 net margin of 2,747.18% and a negative return on equity of 43.96%. The company's revenue for the quarter was up 2873.4% compared to the same quarter last year. During the same quarter in the prior year, the firm earned ($1.04) earnings per share. On average, equities analysts predict that Crinetics Pharmaceuticals will post -4.86 earnings per share for the current fiscal year.

Key Stories Impacting Crinetics Pharmaceuticals

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

• Positive Sentiment: Vertex’s $85-per-share cash offer represents a major premium and is the main reason CRNX shares jumped. Article Title
• Positive Sentiment: The deal validates Crinetics’ approved rare-disease drug PALSONIFY and late-stage pipeline asset Atumelant, making the company more attractive as a strategic acquisition target. Article Title
• Neutral Sentiment: Several analyst downgrades to Hold indicate reduced upside from current levels now that the stock is trading close to the acquisition price. Article Title
• Neutral Sentiment: Investigation headlines from law firms are adding headline risk, but they do not change the announced terms of the deal. Article Title
• Negative Sentiment: Multiple broker downgrades and “hold” ratings suggest limited additional upside unless the deal changes or a competing bid emerges. Article Title

Insider Buying and Selling

In other news, Director Stephanie Okey sold 6,900 shares of the business's 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 of the company's stock, valued at approximately $228,288. The trade was a 51.88% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Coelho Rogerio Vivaldi sold 3,000 shares of the company's stock in a transaction that occurred on Thursday, July 2nd. The shares were sold at an average price of $40.00, for a total value of $120,000.00. Following the transaction, the director owned 19,225 shares of the company's stock, valued at approximately $769,000. This represents a 13.50% 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. Corporate insiders own 3.80% of the company's stock.

Hedge Funds Weigh In On Crinetics Pharmaceuticals

A number of hedge funds have recently modified their holdings of CRNX. Parkman Healthcare Partners LLC raised its holdings in Crinetics Pharmaceuticals by 0.4% during the third quarter. Parkman Healthcare Partners LLC now owns 73,725 shares of the company's stock valued at $3,071,000 after acquiring an additional 313 shares during the period. Parallel Advisors LLC lifted its stake in Crinetics Pharmaceuticals by 34.6% in the 4th quarter. Parallel Advisors LLC now owns 1,225 shares of the company's stock worth $57,000 after purchasing an additional 315 shares in the last quarter. Smartleaf Asset Management LLC boosted its holdings in shares of Crinetics Pharmaceuticals by 107.5% during the 4th quarter. Smartleaf Asset Management LLC now owns 639 shares of the company's stock valued at $30,000 after purchasing an additional 331 shares during the last quarter. Brooklyn Investment Group boosted its holdings in shares of Crinetics Pharmaceuticals by 6.3% during the 4th quarter. Brooklyn Investment Group now owns 5,890 shares of the company's stock valued at $280,000 after purchasing an additional 348 shares during the last quarter. Finally, Commerce Bank grew its position in shares of Crinetics Pharmaceuticals by 5.9% during the fourth quarter. Commerce Bank now owns 8,019 shares of the company's stock valued at $373,000 after purchasing an additional 444 shares in the last quarter. 98.51% of the stock is currently owned by institutional investors.

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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