Nuvalent (NASDAQ:NUVL) Earns "Sell (D-)" Rating from Weiss Ratings

Key Points

• Nuvalent has received a "Sell (D-)" rating from Weiss Ratings, while other analysts have varied opinions, with several assigning "buy" ratings and targets as high as $135.00.
• The company reported a loss of ($1.31) EPS in its latest earnings announcement, missing expectations and indicating a decline from the prior year's EPS of ($0.88).
• Insider trading activity saw significant shares sold, with one insider reducing their stake by 24.14% and another by 17.72%, indicating possible concerns about the company's future performance.

Nuvalent (NASDAQ:NUVL - Get Free Report)'s stock had its "sell (d-)" rating reiterated by equities research analysts at Weiss Ratings in a note issued to investors on Saturday,Weiss Ratings reports.

Several other research analysts have also issued reports on NUVL. Stifel Nicolaus began coverage on shares of Nuvalent in a research report on Thursday, October 16th. They issued a "buy" rating and a $115.00 target price for the company. Wedbush restated an "outperform" rating and set a $115.00 price target on shares of Nuvalent in a research report on Monday, September 8th. Raymond James Financial began coverage on shares of Nuvalent in a research report on Tuesday, September 2nd. They set an "outperform" rating and a $105.00 price target for the company. Cantor Fitzgerald began coverage on shares of Nuvalent in a research report on Wednesday, October 15th. They set an "overweight" rating and a $135.00 price target for the company. Finally, Piper Sandler began coverage on shares of Nuvalent in a research report on Tuesday, August 19th. They set an "overweight" rating and a $112.00 price target for the company. One equities research analyst has rated the stock with a Strong Buy rating, eleven have issued a Buy rating and one has issued a Sell rating to the company. According to MarketBeat.com, Nuvalent has a consensus rating of "Moderate Buy" and a consensus price target of $120.00.

Nuvalent Stock Performance

Shares of NASDAQ:NUVL opened at $93.39 on Friday. Nuvalent has a 52-week low of $55.53 and a 52-week high of $99.94. The firm has a fifty day moving average of $82.07 and a 200 day moving average of $78.04. The firm has a market capitalization of $6.73 billion, a PE ratio of -19.06 and a beta of 1.30.

Nuvalent (NASDAQ:NUVL - Get Free Report) last announced its earnings results on Thursday, August 7th. The company reported ($1.31) earnings per share (EPS) for the quarter, missing the consensus estimate of ($1.27) by ($0.04). During the same period in the prior year, the firm posted ($0.88) EPS. On average, sell-side analysts forecast that Nuvalent will post -3.86 EPS for the current fiscal year.

Insider Activity

In other news, insider Deborah Ann Miller sold 15,624 shares of the company's stock in a transaction dated Wednesday, October 15th. The shares were sold at an average price of $89.98, for a total transaction of $1,405,847.52. Following the completion of the transaction, the insider directly owned 49,086 shares of the company's stock, valued at approximately $4,416,758.28. This represents a 24.14% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is accessible through this hyperlink. Also, insider Henry E. Pelish sold 14,205 shares of the company's stock in a transaction dated Wednesday, October 15th. The shares were sold at an average price of $90.04, for a total transaction of $1,279,018.20. Following the transaction, the insider directly owned 65,963 shares of the company's stock, valued at approximately $5,939,308.52. This trade represents a 17.72% decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders sold 196,771 shares of company stock valued at $16,772,679. 10.20% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Nuvalent

Hedge funds and other institutional investors have recently modified their holdings of the company. CWM LLC raised its stake in shares of Nuvalent by 588.5% during the first quarter. CWM LLC now owns 420 shares of the company's stock valued at $30,000 after acquiring an additional 359 shares during the last quarter. ANTIPODES PARTNERS Ltd bought a new position in Nuvalent in the first quarter worth about $38,000. Covestor Ltd raised its stake in Nuvalent by 705.7% in the first quarter. Covestor Ltd now owns 983 shares of the company's stock worth $70,000 after buying an additional 861 shares in the last quarter. Persistent Asset Partners Ltd bought a new position in Nuvalent in the second quarter worth about $88,000. Finally, Farther Finance Advisors LLC raised its stake in Nuvalent by 9,230.8% in the second quarter. Farther Finance Advisors LLC now owns 1,213 shares of the company's stock worth $93,000 after buying an additional 1,200 shares in the last quarter. 97.26% of the stock is owned by institutional investors.

Nuvalent Company Profile

Nuvalent, Inc, a clinical stage biopharmaceutical company, engages in the development of therapies for patients with cancer. Its lead product candidates are NVL-520, a novel ROS1-selective inhibitor to address the clinical challenges of emergent treatment resistance, central nervous system (CNS)-related adverse events, and brain metastases that may limit the use of ROS1 tyrosine kinase inhibitors (TKIs) for patients with ROS proto-oncogene 1 (ROS1)-positive non-small cell lung cancer (NSCLC) which is under the phase 2 portion of the ARROS-1 Phase 1/2 clinical trial; NVL-655, a brain-penetrant ALK-selective inhibitor, to address the clinical challenges of emergent treatment resistance, CNS-related adverse events, and brain metastases that might limit the use of first-, second-, and third-generation ALK inhibitors that is under the phase 2 portion of the ALKOVE-1 Phase 1/2 clinical trial; and NVL-330, a brain-penetrant human epidermal growth factor receptor 2 (HER2)-selective inhibitor designed to treat tumors driven by HER2ex20, brain metastases, and avoiding treatment-limiting adverse events including due to off-target inhibition of wild-type EGFR, which is expected to initiate phase 1 trial.

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