JonesTrading Upgrades Relay Therapeutics (NASDAQ:RLAY) to Strong-Buy

Key Points

• JonesTrading upgraded Relay Therapeutics from “hold” to “strong-buy,” adding to a generally bullish analyst backdrop that now includes a consensus rating of “Buy” and an average price target of $22.60.
• The company’s stock has been volatile but has rallied meaningfully over the past year, opening at $13.02 versus a 52-week low of $2.75 and high of $17.32, with a market cap of about $2.49 billion.
• Relay recently reported a quarterly loss and weaker-than-expected revenue, while insider and institutional activity was mixed: CFO Thomas Catinazzo sold shares, but several hedge funds increased their holdings.

Relay Therapeutics (NASDAQ:RLAY - Get Free Report) was upgraded by JonesTrading from a "hold" rating to a "strong-buy" rating in a research report issued on Tuesday,Zacks.com reports.

Other equities research analysts have also recently issued reports about the company. The Goldman Sachs Group increased their price target on Relay Therapeutics from $13.00 to $22.00 and gave the company a "buy" rating in a research note on Tuesday, April 28th. Guggenheim raised their price objective on Relay Therapeutics from $15.00 to $22.00 and gave the stock a "buy" rating in a research note on Friday, March 13th. Wells Fargo & Company raised their price objective on Relay Therapeutics from $17.00 to $21.00 and gave the stock an "overweight" rating in a research note on Tuesday, April 28th. Citizens Jmp raised their price objective on Relay Therapeutics from $19.00 to $21.00 and gave the stock a "market outperform" rating in a research note on Wednesday. Finally, HC Wainwright raised their price objective on Relay Therapeutics from $19.00 to $25.00 and gave the stock a "buy" rating in a research note on Wednesday, April 29th. Two analysts have rated the stock with a Strong Buy rating, eight have issued 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 "Buy" and a consensus target price of $22.60.

Relay Therapeutics Stock Performance

Relay Therapeutics stock opened at $13.02 on Tuesday. The stock has a 50-day moving average of $12.62 and a two-hundred day moving average of $9.66. Relay Therapeutics has a one year low of $2.75 and a one year high of $17.32. The stock has a market cap of $2.49 billion, a PE ratio of -8.29 and a beta of 1.74.

Relay Therapeutics (NASDAQ:RLAY - Get Free Report) last released its quarterly earnings results on Tuesday, May 5th. The company reported ($0.41) EPS for the quarter, missing analysts' consensus estimates of ($0.35) by ($0.06). The business had revenue of $3.00 million during the quarter, compared to the consensus estimate of $5.58 million. As a group, sell-side analysts predict that Relay Therapeutics will post -1.6 EPS for the current fiscal year.

Insider Activity

In other news, CFO Thomas Catinazzo sold 17,717 shares of the firm's stock in a transaction dated Thursday, May 14th. The stock was sold at an average price of $12.86, for a total value of $227,840.62. Following the completion of the transaction, the chief financial officer directly owned 195,178 shares in the company, valued at $2,509,989.08. This trade represents a 8.32% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through the SEC website. Insiders sold 40,449 shares of company stock valued at $532,889 in the last three months. Company insiders own 5.04% of the company's stock.

Institutional Trading of Relay Therapeutics

Several hedge funds and other institutional investors have recently bought and sold shares of RLAY. AQR Capital Management LLC grew its holdings in Relay Therapeutics by 11.9% during the first quarter. AQR Capital Management LLC now owns 364,946 shares of the company's stock worth $956,000 after acquiring an additional 38,812 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its holdings in Relay Therapeutics by 6.6% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 84,069 shares of the company's stock worth $221,000 after acquiring an additional 5,238 shares during the period. Millennium Management LLC grew its holdings in Relay Therapeutics by 14.6% during the first quarter. Millennium Management LLC now owns 2,942,875 shares of the company's stock worth $7,710,000 after acquiring an additional 374,491 shares during the period. Dynamic Technology Lab Private Ltd acquired a new stake in Relay Therapeutics during the first quarter worth about $53,000. Finally, Woodline Partners LP grew its holdings in Relay Therapeutics by 448.4% during the first quarter. Woodline Partners LP now owns 1,518,561 shares of the company's stock worth $3,979,000 after acquiring an additional 1,241,657 shares during the period. 96.98% of the stock is owned by institutional investors and hedge funds.

Key Relay Therapeutics News

Here are the key news stories impacting Relay Therapeutics this week:

• Positive Sentiment: Relay reported encouraging Phase 2 ReInspire data for zovegalisib in PIK3CA-driven vascular anomalies, including a 60% volumetric response rate across doses, broad symptom improvement, and a tolerability profile that could support chronic use. GlobeNewswire release on initial clinical data
• Positive Sentiment: Reuters and other market coverage highlighted that the mid-stage results showed the experimental treatment can shrink vascular malformations and improve symptoms, reinforcing investor optimism around the drug’s commercial potential. Reuters article
• Positive Sentiment: Analysts responded favorably, with Citizens JMP raising its price target to $21 and Raymond James lifting its target to $26, while both kept bullish ratings. Analyst price target updates via Benzinga
• Neutral Sentiment: Unusually heavy options activity showed traders positioning for more volatility, with a sharp rise in put volume suggesting some caution even as the stock rallied.
• Negative Sentiment: Relay announced a proposed $175 million common stock offering, which can pressure the share price in the near term due to dilution concerns, even though it also strengthens the balance sheet. GlobeNewswire offering announcement

About Relay Therapeutics

Relay Therapeutics, Inc is a clinical-stage biotechnology company focused on the discovery and development of precision therapies for oncology. Headquartered in Cambridge, Massachusetts, the company was founded in 2016 with the goal of targeting dynamic protein motion using an integrated scientific platform. Relay Therapeutics leverages computational modeling, structural biology, and experimental validation to identify small-molecule drug candidates that modulate the behavior of disease-associated proteins.

The company's core business activity centers on its proprietary drug-discovery engine, which combines high-performance computing—including molecular dynamics simulations—with advanced experimental techniques such as cryo-electron microscopy and biophysical screening.

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