MeiraGTx (NASDAQ:MGTX) Stock Price Expected to Rise, Royal Bank Of Canada Analyst Says

Key Points

• Royal Bank of Canada raised its price target on MeiraGTx to $25 from $24 and kept an outperform rating, implying significant upside from the prior close. The broader analyst view is also constructive, with a consensus rating of Moderate Buy and an average target price of $25.83.
• MeiraGTx recently reported a quarterly EPS loss of $0.57, slightly better than estimates, but revenue came in far below expectations at $0.29 million versus $17 million expected. The company also continues to post weak profitability metrics, including a negative net margin and negative return on equity.
• Insider selling has continued, with the CFO and CEO both trimming holdings in recent transactions. Despite that, institutional investors own about 67.48% of the stock, showing strong institutional participation.

MeiraGTx (NASDAQ:MGTX - Get Free Report) had its price target raised by equities research analysts at Royal Bank Of Canada from $24.00 to $25.00 in a research report issued to clients and investors on Friday,Benzinga reports. The brokerage currently has an "outperform" rating on the stock. Royal Bank Of Canada's target price would indicate a potential upside of 153.96% from the company's previous close.

A number of other brokerages have also issued reports on MGTX. Bank of America increased their price target on shares of MeiraGTx from $14.00 to $16.00 and gave the company a "buy" rating in a research note on Friday, March 27th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of MeiraGTx in a report on Tuesday, April 21st. Chardan Capital reiterated a "buy" rating and issued a $35.00 price objective on shares of MeiraGTx in a research report on Friday, March 27th. Wall Street Zen upgraded MeiraGTx from a "sell" rating to a "hold" rating in a research report on Sunday, April 5th. Finally, Zacks Research upgraded shares of MeiraGTx from a "strong sell" rating to a "hold" rating in a research report on Monday, March 9th. One research analyst has rated the stock with a Strong Buy rating, five have assigned a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the company presently has a consensus rating of "Moderate Buy" and an average target price of $25.83.

MeiraGTx Price Performance

Shares of NASDAQ:MGTX traded down $0.11 during midday trading on Friday, reaching $9.84. The company's stock had a trading volume of 61,939 shares, compared to its average volume of 593,522. The business's fifty day simple moving average is $8.83 and its 200-day simple moving average is $8.27. MeiraGTx has a fifty-two week low of $4.82 and a fifty-two week high of $11.85. The company has a market capitalization of $911.26 million, a P/E ratio of -6.94 and a beta of 1.23.

MeiraGTx (NASDAQ:MGTX - Get Free Report) last issued its quarterly earnings results on Thursday, May 14th. The company reported ($0.57) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.58) by $0.01. The business had revenue of $0.29 million for the quarter, compared to the consensus estimate of $17.00 million. MeiraGTx had a negative net margin of 140.31% and a negative return on equity of 1,065.47%. On average, analysts forecast that MeiraGTx will post -1.76 earnings per share for the current fiscal year.

Insider Activity

In related news, CFO Richard Giroux sold 56,000 shares of the stock in a transaction dated Tuesday, April 21st. The stock was sold at an average price of $10.22, for a total transaction of $572,320.00. Following the completion of the transaction, the chief financial officer directly owned 971,530 shares in the company, valued at approximately $9,929,036.60. This trade represents a 5.45% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Alexandria Forbes sold 62,000 shares of MeiraGTx stock in a transaction that occurred on Tuesday, March 24th. The shares were sold at an average price of $7.41, for a total transaction of $459,420.00. Following the completion of the sale, the chief executive officer owned 1,449,695 shares in the company, valued at $10,742,239.95. This trade represents a 4.10% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 145,661 shares of company stock worth $1,290,647 over the last quarter. 7.50% of the stock is currently owned by company insiders.

Institutional Trading of MeiraGTx

A number of hedge funds and other institutional investors have recently modified their holdings of MGTX. AQR Capital Management LLC acquired a new position in shares of MeiraGTx during the 1st quarter worth approximately $557,000. Rhumbline Advisers grew its position in shares of MeiraGTx by 9.4% in the 2nd quarter. Rhumbline Advisers now owns 63,715 shares of the company's stock valued at $415,000 after acquiring an additional 5,488 shares during the period. Brown Advisory Inc. bought a new position in shares of MeiraGTx in the 2nd quarter valued at about $326,000. Qube Research & Technologies Ltd acquired a new position in shares of MeiraGTx during the 2nd quarter worth about $530,000. Finally, Quantinno Capital Management LP acquired a new position in shares of MeiraGTx during the 2nd quarter worth about $319,000. Institutional investors and hedge funds own 67.48% of the company's stock.

MeiraGTx Company Profile

MeiraGTx Holdings plc is a clinical-stage biotechnology company dedicated to developing gene therapies for the treatment of rare diseases. Founded in 2014 as an outgrowth of research at University College London, the company focuses on leveraging adeno-associated virus (AAV) vectors to deliver functional genes to target tissues. MeiraGTx's pipeline spans ocular, central nervous system and systemic indications, addressing conditions such as inherited retinal dystrophies and neurodegenerative disorders that currently lack effective therapies.

The company's lead programs include AAV-based candidates designed to restore or replace defective genes underlying rare retinal diseases and to modulate cellular pathways in neurological disorders.

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