ImmunityBio (NASDAQ:IBRX) Trading Down 21.1% - Time to Sell?

Key Points

• Shares plunged 21.1% intraday after an FDA warning letter said promotional materials for Anktiva were false or misleading, driving a surge in volume to ~86.5M shares versus an average of ~40.4M.
• Offsetting positives include China approval that expands Anktiva to 34 markets and an NCCN guideline addition for papillary-only NMIBC, supporting longer-term revenue potential and a consensus analyst view of "Moderate Buy" with an average target of $14.40.
• Regulatory and legal risk is elevated—plaintiff-firm Johnson Fistel opened an investigation and media coverage called the FDA letter "scathing"—and insiders have sold shares recently, though insiders still own about 69.48% of the company.

Shares of ImmunityBio, Inc. (NASDAQ:IBRX - Get Free Report) dropped 21.1% during mid-day trading on Tuesday . The company traded as low as $6.54 and last traded at $7.42. Approximately 86,508,149 shares were traded during mid-day trading, an increase of 114% from the average daily volume of 40,442,945 shares. The stock had previously closed at $9.40.

Key Stories Impacting ImmunityBio

Here are the key news stories impacting ImmunityBio this week:

• Positive Sentiment: China approves Anktiva combo therapy for bladder cancer, expanding ImmunityBio’s marketed footprint in Asia to 34 markets — a concrete commercial expansion that supports longer-term revenue potential. ImmunityBio Rises on China Nod to Bladder Cancer Combo Therapy
• Positive Sentiment: NCCN clinical-practice guideline update added Anktiva for papillary-only NMIBC, strengthening its clinical credibility and potential uptake by U.S. oncologists. This likely helped recent upside momentum before today’s drop. ImmunityBio Announces NCCN Update Clinical Practice Guidelines to Include ANKTIVA for Papillary-Only NMIBC
• Positive Sentiment: Analysts and coverage were upbeat: the stock had rallied on expansion prospects (some outlets noted an ~11% move). D. Boral Capital reaffirmed a “buy” with a $23 target, signaling continued analyst conviction despite turbulence. Why ImmunityBio Stock Is Up More Than 11% Today
• Neutral Sentiment: Investor commentary and pieces on valuation highlight a premium price given current revenues and competition; label and geographic expansions are positive but may take time to meaningfully move earnings. A Look At ImmunityBio (IBRX) Valuation After ANKTIVA’s Macau Approval And NCCN Guideline Expansion
• Negative Sentiment: The U.S. Food and Drug Administration sent a warning letter saying a TV ad and podcast promoting Anktiva contained false or misleading claims and violated federal law. That regulatory action is the primary driver of the sharp sell-off and extreme intraday volume. ImmunityBio shares fall on FDA warning letter over cancer therapy claims in ad
• Negative Sentiment: Legal risk increased as plaintiff-firm Johnson Fistel launched an investigation into potential investor claims against ImmunityBio executives, which can amplify uncertainty and selling pressure. ImmunityBio Shareholders Are Encouraged to Reach Out to Johnson Fistel for More Information About Potentially Recovering Their Losses
• Negative Sentiment: Coverage across outlets highlighted the FDA letter as “scathing,” increasing headline risk and driving momentum-led selling despite the company’s recent approvals and guideline wins. ImmunityBio stock price crash: buy the dip or sell the rip?

Analyst Ratings Changes

A number of equities analysts have recently commented on IBRX shares. BTIG Research began coverage on ImmunityBio in a research report on Thursday, March 12th. They set a "buy" rating and a $13.00 price objective for the company. Jefferies Financial Group raised their target price on shares of ImmunityBio from $8.00 to $9.00 and gave the company a "buy" rating in a report on Friday, December 12th. D. Boral Capital reiterated a "buy" rating and set a $23.00 price target on shares of ImmunityBio in a report on Monday. HC Wainwright increased their price objective on shares of ImmunityBio from $10.00 to $15.00 and gave the company a "buy" rating in a research report on Monday, February 23rd. Finally, Weiss Ratings restated a "sell (e+)" rating on shares of ImmunityBio in a report on Monday, December 29th. One investment analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average target price of $14.40.

ImmunityBio Stock Performance

The firm has a market capitalization of $7.62 billion, a price-to-earnings ratio of -19.50 and a beta of -0.04. The company has a 50-day moving average price of $7.38 and a 200-day moving average price of $4.10.

ImmunityBio (NASDAQ:IBRX - Get Free Report) last issued its earnings results on Monday, March 2nd. The company reported ($0.06) earnings per share for the quarter, topping the consensus estimate of ($0.08) by $0.02. The business had revenue of $38.29 million for the quarter. On average, research analysts expect that ImmunityBio, Inc. will post -0.92 earnings per share for the current fiscal year.

Insider Buying and Selling at ImmunityBio

In other ImmunityBio news, Director Christobel Selecky sold 50,000 shares of the company's stock in a transaction on Friday, January 16th. The shares were sold at an average price of $5.00, for a total value of $250,000.00. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, Director Barry J. Simon sold 165,000 shares of the firm's stock in a transaction that occurred on Monday, February 23rd. The stock was sold at an average price of $10.25, for a total value of $1,691,250.00. Following the transaction, the director owned 2,925,821 shares in the company, valued at $29,989,665.25. This represents a 5.34% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders sold 501,967 shares of company stock valued at $4,466,412. Company insiders own 69.48% of the company's stock.

Hedge Funds Weigh In On ImmunityBio

Hedge funds have recently modified their holdings of the business. Vanguard Group Inc. raised its position in ImmunityBio by 18.5% in the 4th quarter. Vanguard Group Inc. now owns 32,777,257 shares of the company's stock valued at $64,899,000 after purchasing an additional 5,122,052 shares during the last quarter. State Street Corp grew its position in 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 last quarter. Geode Capital Management LLC grew its position in ImmunityBio by 15.0% during 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. Armistice Capital LLC acquired a new position in ImmunityBio in the second quarter valued at $20,497,000. Finally, Heights Capital Management Inc. purchased a new stake in shares of ImmunityBio in the third quarter valued at about $16,152,000. 8.58% of the stock is currently owned by hedge funds and other institutional investors.

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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