Investors Purchase High Volume of Call Options on Cytokinetics (NASDAQ:CYTK)

Key Points

• Unusual options activity in Cytokinetics surged, with traders buying 16,357 call options on Tuesday — about 260% above the typical volume of 4,543.
• Several insiders sold shares recently, including EVP Fady Ibraham Malik and EVP Andrew Callos, while insiders collectively sold 169,976 shares worth about $10.7 million over the last 90 days.
• Cytokinetics reported strong revenue growth in its latest quarter, with revenue of $19.36 million versus $8.52 million expected, and analysts have mostly positive views with a consensus rating of Moderate Buy and a target price of $98.55.

Cytokinetics, Incorporated (NASDAQ:CYTK - Get Free Report) saw some unusual options trading on Tuesday. Stock traders bought 16,357 call options on the stock. This is an increase of approximately 260% compared to the typical volume of 4,543 call options.

Insider Activity

In related news, EVP Fady Ibraham Malik sold 3,500 shares of the stock in a transaction on Tuesday, May 5th. The stock was sold at an average price of $77.37, for a total value of $270,795.00. Following the sale, the executive vice president owned 153,902 shares in the company, valued at approximately $11,907,397.74. This represents a 2.22% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Andrew Callos sold 15,857 shares of the stock in a transaction on Friday, May 1st. The shares were sold at an average price of $65.00, for a total value of $1,030,705.00. Following the completion of the sale, the executive vice president owned 58,555 shares in the company, valued at approximately $3,806,075. This trade represents a 21.31% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 169,976 shares of company stock valued at $10,710,369. 2.60% of the stock is owned by insiders.

Institutional Trading of Cytokinetics

Several large investors have recently bought and sold shares of the business. Dimensional Fund Advisors LP boosted its stake in Cytokinetics by 75.2% in the first quarter. Dimensional Fund Advisors LP now owns 94,503 shares of the biopharmaceutical company's stock valued at $6,229,000 after buying an additional 40,574 shares in the last quarter. AlphaCentric Advisors LLC boosted its stake in Cytokinetics by 5.7% in the first quarter. AlphaCentric Advisors LLC now owns 5,616 shares of the biopharmaceutical company's stock valued at $370,000 after buying an additional 305 shares in the last quarter. Swiss National Bank boosted its stake in Cytokinetics by 2.5% in the first quarter. Swiss National Bank now owns 229,800 shares of the biopharmaceutical company's stock valued at $15,146,000 after buying an additional 5,600 shares in the last quarter. California Public Employees Retirement System boosted its stake in Cytokinetics by 4.8% in the first quarter. California Public Employees Retirement System now owns 198,530 shares of the biopharmaceutical company's stock valued at $13,085,000 after buying an additional 9,129 shares in the last quarter. Finally, Assetmark Inc. boosted its stake in Cytokinetics by 14.5% in the first quarter. Assetmark Inc. now owns 3,463 shares of the biopharmaceutical company's stock valued at $228,000 after buying an additional 438 shares in the last quarter.

Cytokinetics Stock Performance

Shares of NASDAQ CYTK traded up $0.01 during mid-day trading on Tuesday, reaching $74.57. The company had a trading volume of 1,387,512 shares, compared to its average volume of 2,230,191. Cytokinetics has a one year low of $29.31 and a one year high of $80.20. The firm has a market cap of $9.28 billion, a price-to-earnings ratio of -10.90 and a beta of 0.38. The business's 50-day simple moving average is $64.73 and its 200 day simple moving average is $64.10.

Cytokinetics (NASDAQ:CYTK - Get Free Report) last issued its quarterly earnings results on Tuesday, May 5th. The biopharmaceutical company reported ($1.67) EPS for the quarter, hitting analysts' consensus estimates of ($1.67). The company had revenue of $19.36 million during the quarter, compared to the consensus estimate of $8.52 million. During the same quarter in the previous year, the business posted ($1.36) EPS. The firm's revenue for the quarter was up 1112.5% on a year-over-year basis. On average, sell-side analysts anticipate that Cytokinetics will post -6.33 EPS for the current year.

Analyst Upgrades and Downgrades

Several research analysts have weighed in on CYTK shares. Morgan Stanley increased their price objective on Cytokinetics from $90.00 to $103.00 and gave the stock an "overweight" rating in a research report on Wednesday, May 6th. JPMorgan Chase & Co. increased their price objective on Cytokinetics from $92.00 to $97.00 and gave the stock an "overweight" rating in a research report on Tuesday. UBS Group set a $119.00 price objective on Cytokinetics in a research report on Wednesday, May 6th. Truist Financial set a $106.00 price objective on Cytokinetics in a research report on Tuesday, May 5th. Finally, Citizens Jmp increased their price objective on Cytokinetics from $88.00 to $96.00 and gave the stock a "market outperform" rating in a research report on Wednesday, February 25th. One analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating, three have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $98.55.

About Cytokinetics

Cytokinetics, Inc is a late‐stage biopharmaceutical company focused on the discovery and development of novel small‐molecule therapeutics that modulate muscle function. Founded in 1998 and headquartered in South San Francisco, California, the company applies its proprietary insights in muscle biology to address diseases characterized by impaired muscle performance. Its research spans both cardiac and skeletal muscle targets, aiming to deliver innovative medicines for conditions with significant unmet medical need.

The company's most advanced program, omecamtiv mecarbil, is being evaluated for the treatment of heart failure by enhancing cardiac muscle contractility.

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