Legend Biotech (NASDAQ:LEGN) Shares Gap Up After Strong Earnings

Key Points

• Legend Biotech shares gapped higher after the company reported quarterly EPS of $0.09, exceeding the $0.06 consensus estimate. Revenue reached $387.5 million, up 51.9% year over year and above analysts’ $355.96 million forecast.
• Analysts maintain a generally positive outlook, with nine Buy ratings, five Holds and one Sell rating. The stock has a “Moderate Buy” consensus rating and an average price target of $55.29, despite several recent target reductions.
• Institutional investors own 70.89% of Legend Biotech, while insiders hold just 0.02%; CEO Ying Huang recently sold 5,566 shares. The company specializes in CAR-T cancer therapies, led by its Carvykti treatment for multiple myeloma.

Legend Biotech Corporation Sponsored ADR (NASDAQ:LEGN - Get Free Report) gapped up prior to trading on Tuesday following a better than expected earnings announcement. The stock had previously closed at $20.66, but opened at $21.78. Legend Biotech shares last traded at $21.8720, with a volume of 553,890 shares traded.

The company reported $0.09 EPS for the quarter, topping the consensus estimate of $0.06 by $0.03. Legend Biotech had a negative return on equity of 24.92% and a negative net margin of 21.98%.The firm had revenue of $387.50 million during the quarter, compared to analysts' expectations of $355.96 million. During the same period last year, the business earned $0.03 earnings per share. Legend Biotech's quarterly revenue was up 51.9% compared to the same quarter last year.

Analyst Upgrades and Downgrades

LEGN has been the subject of a number of analyst reports. Morgan Stanley reduced their price objective on shares of Legend Biotech from $49.00 to $48.00 and set an "overweight" rating for the company in a report on Wednesday, May 13th. UBS Group reissued a "neutral" rating and issued a $28.00 price target (down from $49.00) on shares of Legend Biotech in a research report on Monday, July 27th. Weiss Ratings upgraded shares of Legend Biotech from a "sell (e+)" rating to a "sell (d-)" rating in a research note on Thursday, July 30th. Royal Bank Of Canada cut their price target on shares of Legend Biotech from $63.00 to $59.00 and set an "outperform" rating for the company in a research note on Monday, July 27th. Finally, Raymond James Financial reiterated an "outperform" rating and issued a $58.00 price objective on shares of Legend Biotech in a research note on Monday, July 27th. Nine analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average price target of $55.29.

Insider Buying and Selling at Legend Biotech

In other news, CEO Ying Huang sold 5,566 shares of the firm's stock in a transaction that occurred on Thursday, June 25th. The shares were sold at an average price of $14.78, for a total transaction of $82,265.48. Following the completion of the sale, the chief executive officer owned 241,872 shares of the company's stock, valued at approximately $3,574,868.16. This trade represents a 2.25% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Insiders own 0.02% of the company's stock.

Hedge Funds Weigh In On Legend Biotech

Institutional investors have recently bought and sold shares of the business. Suvretta Capital Management LLC grew its holdings in shares of Legend Biotech by 73.1% during the fourth quarter. Suvretta Capital Management LLC now owns 6,608,629 shares of the company's stock worth $143,672,000 after purchasing an additional 2,790,620 shares during the last quarter. Westfield Capital Management Co. LP lifted its position in Legend Biotech by 1.2% during the 4th quarter. Westfield Capital Management Co. LP now owns 6,164,677 shares of the company's stock worth $134,020,000 after buying an additional 70,191 shares in the last quarter. Goldman Sachs Group Inc. grew its holdings in Legend Biotech by 120.5% during the 4th quarter. Goldman Sachs Group Inc. now owns 2,174,535 shares of the company's stock worth $47,274,000 after acquiring an additional 1,188,449 shares during the last quarter. Assenagon Asset Management S.A. acquired a new stake in Legend Biotech in the 2nd quarter valued at about $55,307,000. Finally, Alliancebernstein L.P. increased its position in Legend Biotech by 4.6% in the 3rd quarter. Alliancebernstein L.P. now owns 1,632,967 shares of the company's stock valued at $53,251,000 after acquiring an additional 72,371 shares in the last quarter. Institutional investors own 70.89% of the company's stock.

Legend Biotech Price Performance

The company has a market capitalization of $4.04 billion, a P/E ratio of -32.02 and a beta of 0.37. The stock's 50 day simple moving average is $26.97 and its two-hundred day simple moving average is $23.14.

About Legend Biotech

Legend Biotech NASDAQ: LEGN is a commercial-stage biopharmaceutical company specializing in the development and commercialization of chimeric antigen receptor T-cell (CAR-T) therapies for oncology. Headquartered in Somerset, New Jersey, with research and development operations in Shanghai, the company leverages a global infrastructure to advance innovative cellular therapies. Legend Biotech pursues a strategy of strategic collaboration to extend its reach, most notably through its partnership with Janssen Biotech, a subsidiary of Johnson & Johnson.

The company's lead asset, ciltacabtagene autoleucel (commercially marketed as Carvykti), is a B-cell maturation antigen (BCMA)–directed CAR-T therapy for the treatment of relapsed or refractory multiple myeloma.

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