Legend Biotech (NASDAQ:LEGN) Stock Price Up 6.8% - Here's Why

Key Points

• Legend Biotech shares rose 6.8% on Monday, trading as high as $23.64 before closing at $23.78, though volume was well below average.
• Analyst sentiment remains mixed but generally positive: the stock has a Moderate Buy consensus rating with a $57 average target, despite recent target cuts and a downgrade from Weiss Ratings.
• The company’s latest results showed revenue growth of 56.5% year over year to $305.1 million, but it still posted a small EPS miss and remains unprofitable.

Legend Biotech Corporation Sponsored ADR (NASDAQ:LEGN - Get Free Report)'s share price traded up 6.8% during trading on Monday . The stock traded as high as $23.64 and last traded at $23.78. 1,185,366 shares were traded during trading, a decline of 52% from the average daily volume of 2,457,067 shares. The stock had previously closed at $22.26.

Wall Street Analyst Weigh In

Several research analysts have recently issued reports on the stock. Weiss Ratings cut shares of Legend Biotech from a "sell (d-)" rating to a "sell (e+)" rating in a report on Friday, July 10th. Morgan Stanley lowered their price target on Legend Biotech from $49.00 to $48.00 and set an "overweight" rating on the stock in a research report on Wednesday, May 13th. JPMorgan Chase & Co. initiated coverage on Legend Biotech in a research note on Monday, July 13th. They issued a "neutral" rating and a $35.00 price objective on the stock. UBS Group upped their price objective on Legend Biotech from $31.00 to $49.00 and gave the company a "buy" rating in a report on Wednesday, June 3rd. Finally, Royal Bank Of Canada decreased their target price on Legend Biotech from $64.00 to $63.00 and set an "outperform" rating for the company in a research note on Tuesday, July 7th. Nine research analysts have rated the stock with a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, Legend Biotech presently has a consensus rating of "Moderate Buy" and a consensus target price of $57.00.

Legend Biotech Stock Performance

The stock has a market capitalization of $4.34 billion, a PE ratio of -34.48 and a beta of 0.34. The firm has a 50 day moving average of $29.33 and a 200-day moving average of $23.33.

Legend Biotech (NASDAQ:LEGN - Get Free Report) last released its earnings results on Wednesday, May 13th. The company reported ($0.03) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.02) by ($0.01). Legend Biotech had a negative return on equity of 24.92% and a negative net margin of 21.98%.The company had revenue of $305.10 million during the quarter, compared to analysts' expectations of $306.51 million. During the same quarter in the previous year, the company earned ($0.07) EPS. The firm's quarterly revenue was up 56.5% compared to the same quarter last year. On average, sell-side analysts predict that Legend Biotech Corporation Sponsored ADR will post -0.01 earnings per share for the current year.

Insider Buying and Selling

In related news, CEO Ying Huang sold 5,566 shares of the business's stock in a transaction that occurred on Thursday, June 25th. The stock was sold at an average price of $14.78, for a total value 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. The trade was a 2.25% decrease in their position. The sale was disclosed in a filing with the SEC, which can be accessed through this link. 0.02% of the stock is owned by company insiders.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of the business. Parallel Advisors LLC raised its stake in shares of Legend Biotech by 171.9% in the 3rd quarter. Parallel Advisors LLC now owns 1,047 shares of the company's stock valued at $34,000 after acquiring an additional 662 shares in the last quarter. Clearstead Advisors LLC lifted its stake in shares of Legend Biotech by 310.7% in the fourth quarter. Clearstead Advisors LLC now owns 3,479 shares of the company's stock worth $76,000 after buying an additional 2,632 shares during the last quarter. Caitong International Asset Management Co. Ltd boosted its holdings in shares of Legend Biotech by 1,730.3% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 3,569 shares of the company's stock worth $78,000 after buying an additional 3,374 shares during the period. Raymond James Financial Inc. acquired a new position in Legend Biotech during the 2nd quarter worth $78,000. Finally, IFM Investors Pty Ltd bought a new position in shares of Legend Biotech in the first quarter worth about $81,000. Institutional investors and hedge funds own 70.89% of the company's stock.

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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