Evotec (NASDAQ:EVO) Shares Gap Down - Here's Why

Key Points

• Evotec shares gapped down at the open, falling from a prior close of $2.14 to $1.98 before last trading around $2.01. The move came with relatively light volume of 59,166 shares.
• Analyst sentiment has turned more cautious, with TD Cowen cutting Evotec to hold and setting a $2.00 price target, while HC Wainwright lowered its target from $7.00 to $4.00. MarketBeat says the overall consensus remains Hold with an average price target of $3.00.
• Evotec’s recent financials show ongoing pressure, including a negative net margin and negative return on equity, and analysts expect the company to post -0.63 EPS for the current fiscal year. The stock also trades below its 50-day and 200-day moving averages, indicating weak momentum.

Evotec AG (NASDAQ:EVO - Get Free Report)'s stock price gapped down before the market opened on Wednesday . The stock had previously closed at $2.14, but opened at $1.98. Evotec shares last traded at $2.0050, with a volume of 59,166 shares.

Analyst Upgrades and Downgrades

A number of equities research analysts have weighed in on EVO shares. Wall Street Zen downgraded Evotec from a "hold" rating to a "sell" rating in a research report on Saturday, May 9th. TD Cowen downgraded Evotec from a "buy" rating to a "hold" rating and set a $2.00 price objective on the stock. in a research note on Wednesday. Weiss Ratings upgraded Evotec from a "sell (e+)" rating to a "sell (d-)" rating in a report on Friday, April 24th. Finally, HC Wainwright decreased their target price on Evotec from $7.00 to $4.00 and set a "buy" rating for the company in a research note on Wednesday. Three analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, the stock has a consensus rating of "Hold" and a consensus price target of $3.00.

Evotec Stock Performance

The business's fifty day moving average is $2.81 and its 200 day moving average is $3.03. The company has a quick ratio of 1.60, a current ratio of 1.68 and a debt-to-equity ratio of 0.43.

Evotec (NASDAQ:EVO - Get Free Report) last issued its earnings results on Tuesday, March 31st. The company reported $0.05 earnings per share for the quarter. The firm had revenue of $297.02 million during the quarter. Evotec had a negative net margin of 26.20% and a negative return on equity of 24.93%. On average, research analysts expect that Evotec AG will post -0.63 EPS for the current fiscal year.

Hedge Funds Weigh In On Evotec

A number of hedge funds have recently modified their holdings of the stock. ABC Arbitrage SA raised its holdings in Evotec by 319.7% during the 4th quarter. ABC Arbitrage SA now owns 554,287 shares of the company's stock worth $1,707,000 after buying an additional 422,230 shares during the period. Wellington Management Group LLP boosted its holdings in shares of Evotec by 25.7% in the fourth quarter. Wellington Management Group LLP now owns 1,797,444 shares of the company's stock worth $5,536,000 after buying an additional 367,545 shares during the period. Optiver Holding B.V. increased its position in shares of Evotec by 598.4% in the first quarter. Optiver Holding B.V. now owns 283,576 shares of the company's stock worth $709,000 after acquiring an additional 242,973 shares in the last quarter. Jane Street Group LLC purchased a new position in shares of Evotec in the fourth quarter worth approximately $565,000. Finally, Millennium Management LLC acquired a new stake in shares of Evotec during the fourth quarter valued at approximately $317,000. 5.81% of the stock is currently owned by institutional investors and hedge funds.

Evotec Company Profile

Evotec SE NASDAQ: EVO is a global biotechnology company headquartered in Hamburg, Germany, specializing in drug discovery and development partnerships. The company leverages its integrated discovery platforms to support pharmaceutical and biotech clients in advancing novel therapies from target identification through preclinical development.

Evotec's service offering encompasses high-throughput screening, bioanalytics, combinatorial chemistry, structural biology, pharmacology, and computational drug design.

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