Incyte (NASDAQ:INCY) Trading 6.6% Higher Following Analyst Upgrade

Key Points

• Incyte shares jumped 6.6% after HC Wainwright raised its price target to $140 from $135 and reiterated a Buy rating. The stock traded as high as $108.58 intraday, up from the prior close of $103.23.
• Sentiment was boosted by Incyte’s planned acquisition of Vega Therapeutics for up to $2 billion, which would add a late-stage von Willebrand disease candidate and broaden its hematology pipeline. The deal is seen as a strategic move ahead of future pressure from Jakafi’s patent expiry.
• Incyte’s latest earnings beat expectations, with quarterly EPS of $1.81 versus consensus of $1.38 and revenue of $1.27 billion versus estimates of $1.22 billion. Revenue also rose 20.9% year over year, and the company continues to draw strong institutional ownership.

Shares of Incyte Corporation (NASDAQ:INCY - Get Free Report) shot up 6.6% on Wednesday after HC Wainwright raised their price target on the stock from $135.00 to $140.00. HC Wainwright currently has a buy rating on the stock. Incyte traded as high as $108.58 and last traded at $110.0580. 494,037 shares traded hands during mid-day trading, a decline of 71% from the average session volume of 1,699,693 shares. The stock had previously closed at $103.23.

Other research analysts also recently issued reports about the stock. Weiss Ratings raised shares of Incyte from a "hold (c+)" rating to a "buy (b-)" rating in a research report on Wednesday, April 1st. Morgan Stanley set a $102.00 target price on shares of Incyte in a report on Wednesday, February 11th. Wells Fargo & Company decreased their target price on shares of Incyte from $107.00 to $101.00 and set an "equal weight" rating for the company in a research note on Wednesday, February 11th. TD Cowen reissued a "hold" rating on shares of Incyte in a report on Tuesday. Finally, Sanford C. Bernstein initiated coverage on Incyte in a research report on Thursday, May 21st. They issued a "market perform" rating and a $99.00 price target on the stock. Eight investment analysts have rated the stock with a Buy rating, thirteen have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat, the company has a consensus rating of "Hold" and an average target price of $105.10.

Insider Activity

In other news, insider Pablo J. Cagnoni sold 18,667 shares of the business's stock in a transaction dated Friday, April 17th. The shares were sold at an average price of $96.50, for a total transaction of $1,801,365.50. Following the transaction, the insider directly owned 262,692 shares in the company, valued at $25,349,778. The trade was a 6.63% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 16.20% of the stock is currently owned by company insiders.

Key Stories Impacting Incyte

Here are the key news stories impacting Incyte this week:

• Positive Sentiment: Incyte announced it will acquire Vega Therapeutics for up to $2 billion, adding a late-stage von Willebrand disease candidate and expanding its hematology pipeline ahead of future revenue pressure from Jakafi’s patent expiry. Article Title
• Positive Sentiment: H.C. Wainwright raised its price target on Incyte to $140 from $135 and reiterated a Buy rating, citing potential synergies from the Vega acquisition. Article Title
• Positive Sentiment: Another report also highlighted the Vega deal as a growth move, noting the upfront $1.25 billion payment and the drug’s blockbuster potential in rare bleeding disorders. Article Title
• Neutral Sentiment: Shareholders approved the company’s board, executive pay, and auditor choices at the annual meeting, removing a governance overhang but creating no major new catalyst. Article Title
• Neutral Sentiment: Incyte also presented at the Goldman Sachs Global Healthcare Conference, which may have reinforced management’s strategic outlook but did not include a headline-changing announcement. Article Title
• Negative Sentiment: Some investors may view the acquisition as expensive, since Incyte is paying a large amount for a pipeline asset that still carries development and execution risk. Article Title

Institutional Trading of Incyte

Several hedge funds have recently modified their holdings of the business. Norges Bank purchased a new position in Incyte in the fourth quarter worth $122,893,000. Caisse de depot et placement du Quebec boosted its position in shares of Incyte by 264.5% during the 3rd quarter. Caisse de depot et placement du Quebec now owns 1,498,013 shares of the biopharmaceutical company's stock worth $127,046,000 after purchasing an additional 1,087,091 shares in the last quarter. Marshall Wace LLP grew its stake in shares of Incyte by 6,586.4% during the 4th quarter. Marshall Wace LLP now owns 1,072,491 shares of the biopharmaceutical company's stock worth $105,930,000 after purchasing an additional 1,056,451 shares during the period. Wellington Management Group LLP increased its holdings in shares of Incyte by 3,406.8% in the 4th quarter. Wellington Management Group LLP now owns 739,378 shares of the biopharmaceutical company's stock valued at $73,028,000 after purchasing an additional 718,294 shares in the last quarter. Finally, SEB Asset Management AB purchased a new position in shares of Incyte in the 1st quarter valued at about $60,817,000. 96.97% of the stock is owned by institutional investors and hedge funds.

Incyte Price Performance

The stock has a market cap of $21.90 billion, a price-to-earnings ratio of 15.56, a PEG ratio of 0.98 and a beta of 0.79. The company's 50 day moving average is $96.92 and its 200 day moving average is $99.05. The company has a debt-to-equity ratio of 0.01, a current ratio of 3.68 and a quick ratio of 3.60.

Incyte (NASDAQ:INCY - Get Free Report) last issued its earnings results on Tuesday, April 28th. The biopharmaceutical company reported $1.81 earnings per share for the quarter, topping the consensus estimate of $1.38 by $0.43. Incyte had a net margin of 26.71% and a return on equity of 26.66%. The company had revenue of $1.27 billion for the quarter, compared to analyst estimates of $1.22 billion. During the same period in the prior year, the business posted $1.16 earnings per share. The firm's revenue for the quarter was up 20.9% compared to the same quarter last year. Research analysts forecast that Incyte Corporation will post 6.65 earnings per share for the current fiscal year.

About Incyte

Incyte Corporation is a Wilmington, Delaware–based biopharmaceutical company focused on the discovery, development and commercialization of novel therapies in oncology and inflammation. Since its founding in 2002, Incyte has grown from a small research organization into a global enterprise, advancing a portfolio of internally developed and partnered assets. The company's research and development efforts center on small-molecule drugs and biologics that modulate critical signaling pathways implicated in cancer, autoimmune disorders and rare diseases.

The company's flagship product is Jakafi® (ruxolitinib), a Janus kinase (JAK) inhibitor approved for the treatment of myelofibrosis and polycythemia vera.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.