CytomX Therapeutics (NASDAQ:CTMX) Trading 4.9% Higher - Should You Buy?

Key Points

• Shares of CytomX rose 4.9% intraday to about $4.64 as multiple analysts raised price targets (e.g., HC Wainwright to $17, Jefferies to $16) and the MarketBeat consensus is a Moderate Buy with a target of $13.44.
• The company reported quarterly EPS of ($0.22) and revenue of $0.66M, missing estimates and reflecting negative margins and return on equity, with a market cap near $812M.
• Insiders including the CEO and CFO recently sold shares (reducing their holdings), although institutional ownership is high (~67.8%) and several hedge funds have built sizable positions.

Shares of CytomX Therapeutics, Inc. (NASDAQ:CTMX - Get Free Report) were up 4.9% during mid-day trading on Friday . The stock traded as high as $4.70 and last traded at $4.6350. Approximately 790,139 shares changed hands during trading, a decline of 88% from the average daily volume of 6,510,745 shares. The stock had previously closed at $4.42.

Wall Street Analysts Forecast Growth

A number of equities analysts have commented on CTMX shares. HC Wainwright lifted their price objective on shares of CytomX Therapeutics from $10.00 to $17.00 and gave the stock a "buy" rating in a report on Monday, March 16th. Piper Sandler increased their target price on shares of CytomX Therapeutics from $10.00 to $12.00 and gave the stock an "overweight" rating in a report on Monday. Jefferies Financial Group lifted their price target on shares of CytomX Therapeutics from $8.00 to $16.00 and gave the company a "buy" rating in a report on Wednesday, March 18th. Wedbush boosted their price objective on shares of CytomX Therapeutics from $6.00 to $11.00 and gave the company an "outperform" rating in a research report on Tuesday, March 17th. Finally, Oppenheimer reiterated an "outperform" rating and set a $12.00 price objective on shares of CytomX Therapeutics in a research note on Monday, March 16th. Nine research analysts have rated the stock with a Buy rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $13.44.

CytomX Therapeutics Stock Performance

The stock has a market capitalization of $812.49 million, a P/E ratio of -118.88 and a beta of 2.44. The stock has a 50 day moving average of $5.29 and a 200 day moving average of $4.18.

CytomX Therapeutics (NASDAQ:CTMX - Get Free Report) last posted its earnings results on Monday, March 16th. The biotechnology company reported ($0.22) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.08) by ($0.14). CytomX Therapeutics had a negative net margin of 22.79% and a negative return on equity of 19.77%. The company had revenue of $0.66 million during the quarter, compared to the consensus estimate of $7.33 million. On average, research analysts anticipate that CytomX Therapeutics, Inc. will post -0.05 EPS for the current fiscal year.

Insider Activity

In other CytomX Therapeutics news, CFO Christopher Ogden sold 19,323 shares of the business's stock in a transaction dated Tuesday, March 17th. The shares were sold at an average price of $6.42, for a total transaction of $124,053.66. Following the completion of the transaction, the chief financial officer directly owned 296,948 shares of the company's stock, valued at $1,906,406.16. The trade was a 6.11% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CEO Sean A. Mccarthy sold 118,969 shares of the company's stock in a transaction dated Tuesday, March 17th. The stock was sold at an average price of $6.42, for a total transaction of $763,780.98. Following the completion of the transaction, the chief executive officer owned 1,078,922 shares of the company's stock, valued at approximately $6,926,679.24. This trade represents a 9.93% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders have sold 191,063 shares of company stock valued at $1,226,624. 6.60% of the stock is owned by company insiders.

Hedge Funds Weigh In On CytomX Therapeutics

Institutional investors and hedge funds have recently added to or reduced their stakes in the business. Orbimed Advisors LLC bought a new stake in CytomX Therapeutics during the 2nd quarter valued at $19,208,000. Commodore Capital LP bought a new position in shares of CytomX Therapeutics in the second quarter worth $17,462,000. Perceptive Advisors LLC acquired a new position in shares of CytomX Therapeutics during the second quarter valued at $15,876,000. Franklin Resources Inc. acquired a new position in shares of CytomX Therapeutics during the second quarter valued at $13,096,000. Finally, Vivo Capital LLC bought a new stake in shares of CytomX Therapeutics during the second quarter valued at about $13,096,000. 67.77% of the stock is owned by institutional investors.

About CytomX Therapeutics

CytomX Therapeutics, Inc is a clinical-stage biopharmaceutical company focused on the discovery and development of next-generation therapeutics based on its proprietary Probody® platform. The company engineers masked antibody prodrugs that remain inactive in healthy tissue but are selectively activated in the tumor microenvironment. This approach is designed to enhance the safety and tolerability of antibody-based therapies, particularly those targeting immuno-oncology pathways.

At the core of CytomX's pipeline is Pacmilimab (CX-072), an anti–PD-L1 Probody therapeutic currently undergoing clinical evaluation for multiple solid tumor indications.

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