Neurocrine Biosciences' (NBIX) "Buy" Rating Reaffirmed at Needham & Company LLC

Key Points

• Needham reaffirmed a "Buy" on Neurocrine with a $185 price target, implying roughly a 39% upside from the current stock level.
• Neurocrine agreed to acquire Soleno Therapeutics for about $2.9B ( $53/sh), adding VYKAT XR and expanding into endocrinology, but the deal drew mixed reactions and pressured Neurocrine shares amid cash‑outlay and execution concerns.
• The company missed Q results on EPS ($1.88 vs. $2.36 est.) while revenue rose 28.3% to $805.5M; Street consensus is a Moderate Buy with an average target near $175.10 and shares trading around $132.78.

Neurocrine Biosciences (NASDAQ:NBIX - Get Free Report)'s stock had its "buy" rating reissued by Needham & Company LLC in a report released on Monday,Benzinga reports. They presently have a $185.00 price objective on the stock. Needham & Company LLC's price objective suggests a potential upside of 39.33% from the company's current price.

Several other equities research analysts have also commented on the company. Zacks Research lowered Neurocrine Biosciences from a "hold" rating to a "strong sell" rating in a research note on Tuesday, February 17th. Stifel Nicolaus boosted their target price on Neurocrine Biosciences from $183.00 to $188.00 and gave the stock a "buy" rating in a report on Thursday, December 11th. Wall Street Zen downgraded shares of Neurocrine Biosciences from a "strong-buy" rating to a "buy" rating in a research report on Monday, February 16th. Truist Financial cut their price target on shares of Neurocrine Biosciences from $169.00 to $140.00 and set a "buy" rating on the stock in a report on Tuesday, February 17th. Finally, Wells Fargo & Company decreased their price objective on shares of Neurocrine Biosciences from $180.00 to $175.00 and set an "overweight" rating for the company in a research note on Friday, February 13th. One analyst has rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating, four have given a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average target price of $175.10.

Neurocrine Biosciences Trading Up 0.9%

Shares of NBIX traded up $1.18 during mid-day trading on Monday, reaching $132.78. The company had a trading volume of 884,121 shares, compared to its average volume of 1,129,526. The stock has a market cap of $13.33 billion, a price-to-earnings ratio of 28.60, a price-to-earnings-growth ratio of 0.69 and a beta of 0.35. The firm has a fifty day simple moving average of $131.56 and a 200-day simple moving average of $139.10. Neurocrine Biosciences has a fifty-two week low of $84.23 and a fifty-two week high of $160.18.

Neurocrine Biosciences (NASDAQ:NBIX - Get Free Report) last announced its quarterly earnings data on Wednesday, February 11th. The company reported $1.88 earnings per share (EPS) for the quarter, missing the consensus estimate of $2.36 by ($0.48). The company had revenue of $805.50 million for the quarter, compared to analysts' expectations of $804.21 million. Neurocrine Biosciences had a net margin of 16.73% and a return on equity of 16.48%. The firm's quarterly revenue was up 28.3% on a year-over-year basis. During the same period in the prior year, the firm earned $1.69 earnings per share. As a group, equities analysts predict that Neurocrine Biosciences will post 4.28 EPS for the current fiscal year.

Insider Activity

In other news, CEO Kyle Gano sold 36,400 shares of the business's stock in a transaction on Friday, January 16th. The shares were sold at an average price of $132.70, for a total transaction of $4,830,280.00. Following the transaction, the chief executive officer directly owned 140,407 shares of the company's stock, valued at approximately $18,632,008.90. The trade was a 20.59% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. 4.80% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Neurocrine Biosciences

Institutional investors have recently added to or reduced their stakes in the company. JPMorgan Chase & Co. grew its stake in shares of Neurocrine Biosciences by 11.0% during the third quarter. JPMorgan Chase & Co. now owns 4,730,152 shares of the company's stock valued at $664,019,000 after acquiring an additional 468,405 shares in the last quarter. AQR Capital Management LLC boosted its holdings in Neurocrine Biosciences by 18.0% in the fourth quarter. AQR Capital Management LLC now owns 3,271,706 shares of the company's stock valued at $462,652,000 after purchasing an additional 498,058 shares during the last quarter. Geode Capital Management LLC grew its stake in Neurocrine Biosciences by 1.7% during the 4th quarter. Geode Capital Management LLC now owns 2,059,282 shares of the company's stock valued at $291,342,000 after purchasing an additional 34,457 shares in the last quarter. Los Angeles Capital Management LLC increased its holdings in Neurocrine Biosciences by 7.4% during the 4th quarter. Los Angeles Capital Management LLC now owns 1,291,278 shares of the company's stock worth $178,248,000 after purchasing an additional 88,522 shares during the last quarter. Finally, Northern Trust Corp raised its position in shares of Neurocrine Biosciences by 31.9% in the 4th quarter. Northern Trust Corp now owns 1,221,184 shares of the company's stock valued at $173,201,000 after purchasing an additional 295,470 shares in the last quarter. Institutional investors and hedge funds own 92.59% of the company's stock.

Key Stories Impacting Neurocrine Biosciences

Here are the key news stories impacting Neurocrine Biosciences this week:

• Positive Sentiment: Acquisition adds VYKAT™ XR (diazoxide choline), a first‑and‑only FDA‑approved therapy for hyperphagia in Prader‑Willi Syndrome, plus intellectual property extending into the mid‑2040s — expands Neurocrine’s commercial portfolio to three first‑in‑class medicines and supports long‑term revenue growth. Neurocrine Biosciences Details $2.9B Soleno Buyout, Touts Vykat XR as Potential Blockbuster
• Positive Sentiment: Company frames the deal as strategic expansion into endocrinology/rare disease, aiming to create a more diversified, durable revenue platform beyond neuroscience. Neurocrine to Acquire Soleno Therapeutics, Expanding Its Endocrinology and Rare Disease Portfolio
• Neutral Sentiment: Deal terms: all‑cash $53.00 per share, ~ $2.9B equity value — represents ~34% premium to SLNO close on April 2 and ~51% above its 30‑day average; conference call and M&A transcript provide further deal context for investors. Neurocrine Biosciences to acquire Soleno Therapeutics in $2.9B deal Neurocrine Biosciences, Inc. (NBIX) M&A Call Transcript
• Neutral Sentiment: Soleno shares jumped sharply on the bid (reports show 28–40% premarket gains), reflecting the deal’s immediate value transfer to SLNO shareholders while highlighting the market’s appetite for obesity/endocrine assets. Soleno shares jump 33% as Neurocrine expands into metabolic diseases with $2.9 billion buyout
• Negative Sentiment: Neurocrine’s shares fell after the announcement — investors are concerned about the cash outlay and whether the $53 price is expensive given execution risk in orphan/metabolic markets. This Pharma Stock Is Surging 40%. Neurocrine Is Buying It in $2.9 Billion Deal.
• Negative Sentiment: Analysts flag balanced risk/reward: BMO kept a Hold and $140 PT, citing favorable acquisition prospects offset by long‑term Ingrezza and orphan‑market execution risks — implies limited near‑term analyst upside. Balanced View on Neurocrine Biosciences: Favorable Soleno Acquisition Prospects Offset by Long-Term Ingrezza and Orphan Market Execution Risks

Neurocrine Biosciences Company Profile

Neurocrine Biosciences NASDAQ: NBIX is a biopharmaceutical company based in San Diego, California, focused on developing treatments for neurological, endocrine and neuropsychiatric disorders. Since its founding in 1992, the company has pursued a research‐driven strategy aimed at addressing unmet medical needs in movement disorders, reproductive health and central nervous system conditions. Neurocrine's operations encompass drug discovery, clinical development and commercialization activities.

The company's lead marketed product, Ingrezza™ (valbenazine), is indicated for the treatment of tardive dyskinesia, a movement disorder associated with long-term antipsychotic use.

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