ImmunityBio (NASDAQ:IBRX) Shares Gap Down on Disappointing Earnings

Key Points

• ImmunityBio shares fell sharply, opening at $6.76 versus a prior close of $7.15, after the company reported quarterly EPS of $(0.22), missing analyst expectations of $(0.08). Revenue of $51.24 million exceeded the $49.70 million consensus estimate.
• Analyst sentiment remains largely positive, with six analysts rating the stock Buy and one rating it Sell; the consensus is “Moderate Buy” with an average price target of $14.20.
• Company insiders sold 435,443 shares worth approximately $3.9 million over the past 90 days, while institutional investors increased their holdings; insiders own 66.10% of the stock and institutions own 8.58%.

ImmunityBio, Inc. (NASDAQ:IBRX - Get Free Report)'s share price gapped down before the market opened on Tuesday following a weaker than expected earnings announcement. The stock had previously closed at $7.15, but opened at $6.76. ImmunityBio shares last traded at $6.8960, with a volume of 3,828,408 shares.

The company reported ($0.22) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.08) by ($0.14). The business had revenue of $51.24 million during the quarter, compared to the consensus estimate of $49.70 million.

Wall Street Analysts Forecast Growth

A number of research analysts have commented on IBRX shares. D. Boral Capital reiterated a "buy" rating and set a $23.00 price objective on shares of ImmunityBio in a research note on Tuesday, May 5th. HC Wainwright reissued a "buy" rating and issued a $15.00 target price on shares of ImmunityBio in a research report on Tuesday, June 2nd. Weiss Ratings restated a "sell (d-)" rating on shares of ImmunityBio in a research note on Friday, July 10th. Finally, BTIG Research reaffirmed a "buy" rating and set a $12.00 price target on shares of ImmunityBio in a research report on Thursday, May 21st. Six equities research analysts have rated the stock with a Buy rating and one has given a Sell rating to the stock. According to MarketBeat, ImmunityBio has an average rating of "Moderate Buy" and an average target price of $14.20.

Insider Activity at ImmunityBio

In other ImmunityBio news, Director Cheryl Cohen sold 131,210 shares of the business's stock in a transaction on Thursday, July 2nd. The shares were sold at an average price of $9.50, for a total transaction of $1,246,495.00. Following the completion of the sale, the director owned 125,386 shares in the company, valued at $1,191,167. The trade was a 51.13% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Christobel Selecky sold 159,478 shares of the stock in a transaction on Wednesday, July 1st. The stock was sold at an average price of $9.02, for a total transaction of $1,438,491.56. Following the sale, the director directly owned 35,064 shares in the company, valued at $316,277.28. This trade represents a 81.98% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last ninety days, insiders have sold 435,443 shares of company stock valued at $3,918,819. Corporate insiders own 66.10% of the company's stock.

Institutional Investors Weigh In On ImmunityBio

Institutional investors have recently modified their holdings of the business. Vanguard Group Inc. boosted its stake in ImmunityBio by 18.5% in the fourth quarter. Vanguard Group Inc. now owns 32,777,257 shares of the company's stock valued at $64,899,000 after acquiring an additional 5,122,052 shares during the period. State Street Corp raised its position in shares of ImmunityBio by 45.4% during the 4th quarter. State Street Corp now owns 16,455,703 shares of the company's stock worth $32,582,000 after purchasing an additional 5,139,890 shares during the period. Geode Capital Management LLC lifted its holdings in shares of ImmunityBio by 15.0% in the 4th quarter. Geode Capital Management LLC now owns 7,920,178 shares of the company's stock worth $15,684,000 after purchasing an additional 1,030,113 shares during the last quarter. Goldman Sachs Group Inc. boosted its position in ImmunityBio by 439.4% during the 4th quarter. Goldman Sachs Group Inc. now owns 6,152,684 shares of the company's stock valued at $12,182,000 after purchasing an additional 5,012,001 shares during the period. Finally, Woodline Partners LP boosted its position in ImmunityBio by 53.7% during the 3rd quarter. Woodline Partners LP now owns 5,297,725 shares of the company's stock valued at $13,032,000 after purchasing an additional 1,851,854 shares during the period. Institutional investors own 8.58% of the company's stock.

ImmunityBio Stock Performance

The stock has a market capitalization of $7.17 billion, a P/E ratio of -8.09 and a beta of 0.03. The stock has a 50 day moving average of $7.70 and a 200 day moving average of $7.59.

About ImmunityBio

ImmunityBio, Inc is a clinical-stage biotechnology company specializing in the development of novel immunotherapies for cancer and infectious diseases. The company’s research platform centers on harnessing the power of the human immune system—through engineered T cells, natural killer (NK) cells, cytokine superagonists and viral-vectored vaccines—to target and eliminate diseased cells across a range of indications.

Among its lead assets is Anktiva (formerly known as N-803), an interleukin-15 superagonist designed to stimulate NK and T cell activity.

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