Nektar Therapeutics (NASDAQ:NKTR) Rating Lowered to "Sell" at Wall Street Zen

Key Points

• Wall Street Zen downgraded Nektar Therapeutics from “hold” to “sell”, even though the broader analyst view remains more positive with a consensus rating of Moderate Buy.
• Nektar reported first-quarter EPS of -$1.82, missing estimates, while revenue of $10.86 million was only slightly above expectations; the company also continues to project a sizable full-year loss.
• The stock has seen mixed signals from analysts and investors, including higher price targets from firms like Piper Sandler and Citigroup, while attention remains on REZPEG and the company’s improved cash position of $731.6 million.

Nektar Therapeutics (NASDAQ:NKTR - Get Free Report) was downgraded by Wall Street Zen from a "hold" rating to a "sell" rating in a report released on Saturday.

A number of other research firms have also commented on NKTR. William Blair raised shares of Nektar Therapeutics from a "market perform" rating to an "outperform" rating in a research note on Tuesday, February 10th. Wedbush lifted their target price on shares of Nektar Therapeutics from $70.00 to $95.00 and gave the company a "neutral" rating in a research note on Tuesday, April 21st. Citigroup lifted their target price on shares of Nektar Therapeutics from $123.00 to $151.00 and gave the company a "buy" rating in a research note on Tuesday, April 21st. Oppenheimer reissued an "outperform" rating and set a $140.00 target price on shares of Nektar Therapeutics in a research note on Friday, March 13th. Finally, BTIG Research lifted their target price on shares of Nektar Therapeutics from $151.00 to $178.00 and gave the company a "buy" rating in a research note on Monday, April 20th. Nine research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, Nektar Therapeutics presently has a consensus rating of "Moderate Buy" and a consensus target price of $151.50.

Nektar Therapeutics Stock Performance

Nektar Therapeutics stock opened at $81.89 on Friday. The company has a 50 day moving average price of $77.37 and a 200 day moving average price of $60.96. Nektar Therapeutics has a 52 week low of $7.99 and a 52 week high of $109.00. The firm has a market capitalization of $2.76 billion, a price-to-earnings ratio of -9.73 and a beta of 1.24.

Nektar Therapeutics (NASDAQ:NKTR - Get Free Report) last posted its quarterly earnings data on Thursday, May 7th. The biopharmaceutical company reported ($1.82) EPS for the quarter, missing analysts' consensus estimates of ($1.58) by ($0.24). Nektar Therapeutics had a negative return on equity of 308.94% and a negative net margin of 284.18%.The firm had revenue of $10.86 million during the quarter, compared to analyst estimates of $10.69 million. Equities analysts forecast that Nektar Therapeutics will post -10.02 earnings per share for the current fiscal year.

Insider Activity

In other Nektar Therapeutics news, CEO Howard W. Robin sold 423 shares of Nektar Therapeutics stock in a transaction on Wednesday, February 18th. The shares were sold at an average price of $73.00, for a total transaction of $30,879.00. Following the completion of the sale, the chief executive officer owned 75,489 shares of the company's stock, valued at $5,510,697. This trade represents a 0.56% decrease in their position. The sale was disclosed in a filing with the SEC, which is available at this hyperlink. 2.50% of the stock is owned by company insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the business. AQR Capital Management LLC raised its holdings in shares of Nektar Therapeutics by 336.9% during the 1st quarter. AQR Capital Management LLC now owns 3,640,851 shares of the biopharmaceutical company's stock valued at $2,463,000 after purchasing an additional 2,807,595 shares in the last quarter. BVF Inc. IL raised its holdings in shares of Nektar Therapeutics by 22.2% during the 4th quarter. BVF Inc. IL now owns 1,559,595 shares of the biopharmaceutical company's stock valued at $65,940,000 after purchasing an additional 283,000 shares in the last quarter. Vanguard Group Inc. raised its holdings in shares of Nektar Therapeutics by 30.0% during the 3rd quarter. Vanguard Group Inc. now owns 948,647 shares of the biopharmaceutical company's stock valued at $53,978,000 after purchasing an additional 219,155 shares in the last quarter. Farallon Capital Management LLC bought a new position in shares of Nektar Therapeutics during the 3rd quarter valued at $45,008,000. Finally, Two Seas Capital LP bought a new position in shares of Nektar Therapeutics during the 4th quarter valued at $31,506,000. Institutional investors own 75.88% of the company's stock.

Key Headlines Impacting Nektar Therapeutics

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

• Positive Sentiment: Piper Sandler raised its price target on Nektar Therapeutics to $192 from $105 and kept an overweight rating, signaling stronger upside expectations for the stock.
• Positive Sentiment: William Blair reiterated a bullish view, citing Nektar’s strong cash position and late-stage autoimmune pipeline as reasons the risk/reward profile remains attractive.
• Positive Sentiment: Investors remain focused on REZPEG, which the company continues to advance in late-stage studies for autoimmune diseases and could be the main long-term value driver.
• Neutral Sentiment: In its first-quarter results, Nektar reported cash and investments of $731.6 million, up sharply from $245.8 million at year-end, improving its balance-sheet flexibility.
• Negative Sentiment: The company reported adjusted losses of $1.82 per share, missing Wall Street expectations, while revenue of $10.86 million also came in slightly below estimates.
• Negative Sentiment: A newly filed class action lawsuit against Nektar and certain officers adds legal overhang and may weigh on investor sentiment until there is more clarity.

About Nektar Therapeutics

Nektar Therapeutics NASDAQ: NKTR is a biopharmaceutical company dedicated to discovering and developing novel drug candidates through its proprietary chemistry and immunology platforms. The company focuses on polymer conjugate technology, which enables the creation of longer-acting versions of existing drugs, and on T-cell modulatory therapies aimed at harnessing the body's immune system to treat cancer and other serious diseases.

Nektar's product portfolio and pipeline include a range of clinical-stage and partnered programs.

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