Krystal Biotech (NASDAQ:KRYS) Shares Gap Down - Here's What Happened

Key Points

• KRYS shares fell sharply: Krystal Biotech opened at $320.70 versus a prior close of $341.12 and last traded near $315.68.
• Analysts remain generally positive: Ten analysts rate the stock Buy and two rate it Hold, producing a “Moderate Buy” consensus and average price target of $360.67.
• Quarterly results were mixed: Earnings per share of $1.79 exceeded estimates of $1.73, while revenue of $119.22 million fell short of the $121.81 million consensus. Insiders sold roughly $8.24 million of shares over the past 90 days.

Krystal Biotech, Inc. (NASDAQ:KRYS - Get Free Report) gapped down before the market opened on Monday . The stock had previously closed at $341.12, but opened at $320.70. Krystal Biotech shares last traded at $315.6780, with a volume of 155,203 shares trading hands.

Analyst Upgrades and Downgrades

KRYS has been the subject of a number of research reports. Bank of America upped their price objective on Krystal Biotech from $364.00 to $396.00 and gave the stock a "buy" rating in a report on Tuesday, July 14th. Wall Street Zen cut Krystal Biotech from a "buy" rating to a "hold" rating in a report on Saturday, June 20th. HC Wainwright upped their target price on Krystal Biotech from $310.00 to $361.00 and gave the stock a "buy" rating in a research note on Tuesday, June 16th. Evercore reiterated an "outperform" rating and set a $300.00 price target on shares of Krystal Biotech in a research report on Tuesday, May 5th. Finally, Jefferies Financial Group reissued a "buy" rating and set a $474.00 price target on shares of Krystal Biotech in a research note on Monday, July 13th. Ten equities research analysts have rated the stock with a Buy rating and two have assigned a Hold rating to the company. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $360.67.

Krystal Biotech Price Performance

The stock has a market capitalization of $8.85 billion, a P/E ratio of 39.85 and a beta of 0.53. The stock has a 50 day moving average price of $339.70 and a 200-day moving average price of $296.45.

Krystal Biotech (NASDAQ:KRYS - Get Free Report) last released its earnings results on Monday, August 3rd. The company reported $1.79 earnings per share for the quarter, beating analysts' consensus estimates of $1.73 by $0.06. The company had revenue of $119.22 million during the quarter, compared to analyst estimates of $121.81 million. Krystal Biotech had a return on equity of 19.25% and a net margin of 53.92%. Research analysts predict that Krystal Biotech, Inc. will post 7.31 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, insider Suma Krishnan sold 25,000 shares of the firm's stock in a transaction that occurred on Thursday, June 4th. The shares were sold at an average price of $308.11, for a total value of $7,702,750.00. Following the transaction, the insider owned 1,378,155 shares in the company, valued at approximately $424,623,337.05. This trade represents a 1.78% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP John Charles Thomas sold 1,000 shares of Krystal Biotech stock in a transaction on Thursday, June 25th. The stock was sold at an average price of $347.27, for a total transaction of $347,270.00. Following the completion of the transaction, the executive vice president directly owned 1,000 shares in the company, valued at approximately $347,270. The trade was a 50.00% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 26,642 shares of company stock worth $8,243,923 over the last ninety days. Insiders own 13.10% of the company's stock.

Hedge Funds Weigh In On Krystal Biotech

A number of hedge funds have recently modified their holdings of KRYS. UMB Bank n.a. boosted its holdings in shares of Krystal Biotech by 34.6% during the fourth quarter. UMB Bank n.a. now owns 144 shares of the company's stock worth $36,000 after purchasing an additional 37 shares during the period. Optimize Financial Inc increased its position in Krystal Biotech by 1.4% during the 4th quarter. Optimize Financial Inc now owns 2,855 shares of the company's stock valued at $704,000 after purchasing an additional 40 shares during the period. Perigon Wealth Management LLC increased its position in Krystal Biotech by 0.5% during the 4th quarter. Perigon Wealth Management LLC now owns 8,970 shares of the company's stock valued at $2,211,000 after purchasing an additional 41 shares during the period. Regal Investment Advisors LLC raised its holdings in Krystal Biotech by 1.0% in the 4th quarter. Regal Investment Advisors LLC now owns 4,360 shares of the company's stock worth $1,075,000 after purchasing an additional 44 shares in the last quarter. Finally, Torray Investment Partners LLC raised its holdings in Krystal Biotech by 0.4% in the 1st quarter. Torray Investment Partners LLC now owns 12,032 shares of the company's stock worth $3,108,000 after purchasing an additional 47 shares in the last quarter. Hedge funds and other institutional investors own 86.29% of the company's stock.

Krystal Biotech Company Profile

Krystal Biotech, Inc is a clinical-stage biotechnology company focused on developing gene therapies for rare dermatological diseases. Headquartered in Pittsburgh, Pennsylvania, the company applies proprietary viral vector delivery technology to enable topical administration of corrective genes directly to the skin. By targeting the underlying genetic causes of inherited skin disorders, Krystal Biotech seeks to address areas of high unmet medical need with potentially transformative treatments.

The company's lead product candidate, KB103, is designed to deliver a functional COL7A1 gene to patients with dystrophic epidermolysis bullosa (DEB), a severe and often debilitating blistering condition.

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