ImmunityBio (NASDAQ:IBRX) Trading Down 9.8% - Here's What Happened

Key Points

• FDA warning about unsupported efficacy claims tied to Anktiva and a resulting securities class action (plus multiple law firms' investigations) have created significant legal pressure on ImmunityBio.
• The stock slid about 9.8% to $6.66 on Monday with ~24.13 million shares traded (roughly 39% below average), giving the company a market cap near $6.85 billion.
• Despite the legal cloud, analysts largely maintain positive ratings (consensus "Moderate Buy") with a $14.40 average price target, while insiders have sold roughly 501,967 shares in the past three months yet still own about 69.48% of the company.

ImmunityBio, Inc. (NASDAQ:IBRX - Get Free Report) was down 9.8% during trading on Monday . The stock traded as low as $6.57 and last traded at $6.66. Approximately 24,132,524 shares were traded during mid-day trading, a decline of 39% from the average daily volume of 39,348,066 shares. The stock had previously closed at $7.38.

ImmunityBio News Summary

Here are the key news stories impacting ImmunityBio this week:

• Negative Sentiment: FDA warning letter + securities class action: The company received an FDA warning about unsupported efficacy claims tied to Anktiva made by its executive chairman/CSMO (Dr. Patrick Soon‑Shiong); Hagens Berman says a securities class action has been filed and notes a large market‑cap impact. Article Title
• Negative Sentiment: Multiple law firms launch suits / solicit lead plaintiffs and investigations: At least a half dozen national firms (Block & Leviton, Glancy Prongay Wolke & Rotter, Robbins LLP, Rosen Law, Faruqi & Faruqi, RGRD, Bronstein Gewirtz & Grossman, DJS, Schall, et al.) have filed complaints or are soliciting clients and investigating potential securities claims tied to the same disclosure window—adding litigation pressure and media attention. Representative notices: Block & Leviton Notice Glancy Notice

Wall Street Analysts Forecast Growth

Several research firms recently weighed in on IBRX. D. Boral Capital reiterated a "buy" rating and set a $23.00 price objective on shares of ImmunityBio in a research note on Monday, March 23rd. The Goldman Sachs Group reaffirmed a "buy" rating on shares of ImmunityBio in a report on Monday, February 23rd. BTIG Research assumed coverage on ImmunityBio in a research report on Thursday, March 12th. They set a "buy" rating and a $13.00 price target on the stock. Jefferies Financial Group raised their price target on ImmunityBio from $8.00 to $9.00 and gave the stock a "buy" rating in a report on Friday, December 12th. Finally, Piper Sandler restated an "overweight" rating and set a $12.00 price objective (up from $7.00) on shares of ImmunityBio in a research report on Wednesday, March 4th. One investment analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating and one has given a Sell rating to the company. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $14.40.

ImmunityBio Trading Down 9.8%

The stock has a market capitalization of $6.85 billion, a P/E ratio of -17.53 and a beta of -0.03. The company's 50-day moving average is $7.68 and its two-hundred day moving average is $4.25.

ImmunityBio (NASDAQ:IBRX - Get Free Report) last posted its earnings results on Monday, March 2nd. The company reported ($0.06) EPS for the quarter, topping the consensus estimate of ($0.08) by $0.02. The firm had revenue of $38.29 million during the quarter. Sell-side analysts expect that ImmunityBio, Inc. will post -0.92 EPS for the current fiscal year.

Insider Buying and Selling

In other ImmunityBio news, Director Christobel Selecky sold 50,000 shares of ImmunityBio stock in a transaction on Friday, January 16th. The stock was sold at an average price of $5.00, for a total transaction of $250,000.00. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. Also, Director Barry J. Simon sold 165,000 shares of the business's stock in a transaction 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 of the company's stock, valued at $29,989,665.25. This trade represents a 5.34% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold a total of 501,967 shares of company stock valued at $4,466,412 over the last three months. Corporate insiders own 69.48% of the company's stock.

Institutional Investors Weigh In On ImmunityBio

A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Armistice Capital LLC acquired a new position in ImmunityBio during the 2nd quarter valued at about $20,497,000. Heights Capital Management Inc. acquired a new stake in shares of ImmunityBio in the 3rd quarter worth approximately $16,152,000. Vanguard Group Inc. lifted its stake in shares of ImmunityBio by 26.8% in the 3rd quarter. Vanguard Group Inc. now owns 27,655,205 shares of the company's stock worth $68,032,000 after acquiring an additional 5,837,898 shares during the period. State Street Corp boosted its holdings in shares of ImmunityBio by 45.4% in the fourth quarter. State Street Corp now owns 16,455,703 shares of the company's stock valued at $32,582,000 after acquiring an additional 5,139,890 shares in the last quarter. Finally, Goldman Sachs Group Inc. increased its stake in shares of ImmunityBio by 439.4% during the fourth quarter. Goldman Sachs Group Inc. now owns 6,152,684 shares of the company's stock valued at $12,182,000 after acquiring an additional 5,012,001 shares during the period. 8.58% of the stock is currently owned by institutional investors.

ImmunityBio Company Profile

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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