Guggenheim Initiates Coverage on Relay Therapeutics (NASDAQ:RLAY)

Key Points

• Guggenheim has initiated coverage on Relay Therapeutics (NASDAQ: RLAY) with a "buy" rating and a target price of $15.00, suggesting a potential upside of 275.47% from its previous close.
• Relay Therapeutics reported a quarterly earnings per share of ($0.41), exceeding expectations, and had revenue of $0.70 million, significantly higher than the estimated $0.07 million.
• Insider selling activity was noted, with key executives reducing their stakes, including a sale of 26,701 shares by insider Donald A. Bergstrom, valued at approximately $98,259.

Analysts at Guggenheim initiated coverage on shares of Relay Therapeutics (NASDAQ:RLAY - Get Free Report) in a research note issued to investors on Thursday, Marketbeat Ratings reports. The firm set a "buy" rating and a $15.00 price target on the stock. Guggenheim's target price suggests a potential upside of 275.47% from the stock's previous close.

Several other equities analysts also recently weighed in on RLAY. HC Wainwright dropped their price objective on Relay Therapeutics from $16.00 to $14.00 and set a "buy" rating for the company in a research note on Tuesday, August 26th. Raymond James Financial dropped their price target on Relay Therapeutics from $29.00 to $19.00 and set a "strong-buy" rating for the company in a research report on Friday, August 8th. One equities research analyst has rated the stock with a Strong Buy rating, ten have issued a Buy rating and two have issued a Hold rating to the stock. According to data from MarketBeat, the stock has an average rating of "Moderate Buy" and an average price target of $17.50.

Relay Therapeutics Stock Performance

Relay Therapeutics stock traded down $0.12 during mid-day trading on Thursday, reaching $4.00. 580,548 shares of the company were exchanged, compared to its average volume of 2,204,667. Relay Therapeutics has a twelve month low of $1.77 and a twelve month high of $10.72. The firm's 50-day simple moving average is $3.56 and its two-hundred day simple moving average is $3.25. The firm has a market cap of $688.78 million, a PE ratio of -2.06 and a beta of 1.60.

Relay Therapeutics (NASDAQ:RLAY - Get Free Report) last posted its quarterly earnings data on Thursday, August 7th. The company reported ($0.41) earnings per share for the quarter, topping analysts' consensus estimates of ($0.49) by $0.08. The company had revenue of $0.70 million for the quarter, compared to analyst estimates of $0.07 million. As a group, equities research analysts anticipate that Relay Therapeutics will post -2.55 EPS for the current year.

Insider Buying and Selling

In related news, insider Donald A. Bergstrom sold 26,701 shares of the business's stock in a transaction dated Tuesday, July 29th. The stock was sold at an average price of $3.68, for a total value of $98,259.68. Following the completion of the sale, the insider directly owned 552,720 shares of the company's stock, valued at $2,034,009.60. The trade was a 4.61% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this link. Also, CFO Thomas Catinazzo sold 18,380 shares of the business's stock in a transaction dated Tuesday, July 29th. The shares were sold at an average price of $3.68, for a total value of $67,638.40. Following the completion of the sale, the chief financial officer directly owned 335,295 shares of the company's stock, valued at approximately $1,233,885.60. This represents a 5.20% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 149,226 shares of company stock valued at $542,926 over the last ninety days. Insiders own 4.87% of the company's stock.

Hedge Funds Weigh In On Relay Therapeutics

Hedge funds and other institutional investors have recently made changes to their positions in the business. Murchinson Ltd. acquired a new stake in Relay Therapeutics in the first quarter worth approximately $26,000. DRW Securities LLC acquired a new stake in Relay Therapeutics in the first quarter worth approximately $28,000. AssuredPartners Investment Advisors LLC acquired a new stake in Relay Therapeutics in the first quarter worth approximately $29,000. FNY Investment Advisers LLC lifted its position in Relay Therapeutics by 100.0% in the second quarter. FNY Investment Advisers LLC now owns 10,000 shares of the company's stock worth $34,000 after purchasing an additional 5,000 shares during the period. Finally, Quinn Opportunity Partners LLC acquired a new stake in Relay Therapeutics in the second quarter worth approximately $35,000. 96.98% of the stock is currently owned by institutional investors and hedge funds.

Relay Therapeutics Company Profile

Relay Therapeutics, Inc operates as a clinical-stage precision medicines company. It engages in transforming the drug discovery process with an initial focus on enhancing small molecule therapeutic discovery in targeted oncology and genetic disease indications. The company's lead product candidates include RLY-4008, an oral small molecule inhibitor of fibroblast growth factor receptor 2 (FGFR2), which is in a first-in-human clinical trial for patients with advanced or metastatic FGFR2-altered solid tumors; RLY-2608, a lead mutant-PI3Ka inhibitor program that targets phosphoinostide 3 kinase alpha; and Migoprotafib (GDC-1971), an oral, small molecule, potent and selective inhibitor of the protein tyrosine phosphatase SHP2 that binds and stabilizes Src homology region 2 domain-containing phosphatase-2 (SHP2) as a monotherapy in patients with advanced or metastatic solid tumors.

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