Nuvalent (NASDAQ:NUVL) Coverage Initiated at Guggenheim

Key Points

• Analysts at Guggenheim have initiated coverage of Nuvalent (NASDAQ:NUVL), assigning a "buy" rating and a price target of $122.00, which indicates a potential upside of 54.53% from its current price.
• Nuvalent's stock recently dipped 0.8%, trading at $78.88, and the company has a market capitalization of $5.69 billion.
• Insider transactions show significant selling, with CEO James Richard Porter selling 27,000 shares at an average price of $75.42, reducing his ownership by nearly 10%.

Analysts at Guggenheim began coverage on shares of Nuvalent (NASDAQ:NUVL - Get Free Report) in a research report issued to clients and investors on Thursday, MarketBeat reports. The brokerage set a "buy" rating and a $122.00 price target on the stock. Guggenheim's price target points to a potential upside of 55.95% from the company's current price.

NUVL has been the subject of several other research reports. The Goldman Sachs Group raised shares of Nuvalent to a "strong-buy" rating in a research report on Monday, June 30th. Piper Sandler started coverage on Nuvalent in a report on Tuesday, August 19th. They issued an "overweight" rating and a $112.00 price objective for the company. Robert W. Baird boosted their target price on Nuvalent from $105.00 to $112.00 and gave the company an "outperform" rating in a research note on Wednesday, June 25th. Raymond James Financial began coverage on Nuvalent in a report on Tuesday, September 2nd. They set an "outperform" rating and a $105.00 target price for the company. Finally, HC Wainwright reissued a "buy" rating and set a $130.00 price objective (up from $110.00) on shares of Nuvalent in a research report on Tuesday, June 24th. One analyst has rated the stock with a Strong Buy rating and eleven have issued a Buy rating to the company's stock. According to MarketBeat, Nuvalent presently has a consensus rating of "Buy" and a consensus target price of $120.91.

Nuvalent Stock Performance

Shares of NUVL stock traded down $1.60 on Thursday, hitting $78.23. 119,849 shares of the company's stock traded hands, compared to its average volume of 531,162. The company's fifty day simple moving average is $78.67 and its 200 day simple moving average is $75.14. Nuvalent has a one year low of $55.53 and a one year high of $113.51. The stock has a market capitalization of $5.64 billion, a price-to-earnings ratio of -15.97 and a beta of 1.29.

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

Insider Activity

In related news, CFO Alexandra Balcom sold 20,000 shares of the company's stock in a transaction on Friday, June 27th. The stock was sold at an average price of $80.02, for a total transaction of $1,600,400.00. Following the completion of the sale, the chief financial officer owned 61,734 shares in the company, valued at approximately $4,939,954.68. This represents a 24.47% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, insider Henry E. Pelish sold 8,630 shares of Nuvalent stock in a transaction dated Wednesday, June 25th. The shares were sold at an average price of $79.87, for a total value of $689,278.10. Following the transaction, the insider directly owned 63,101 shares in the company, valued at approximately $5,039,876.87. The trade was a 12.03% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold 117,945 shares of company stock valued at $9,439,908 over the last three months. Insiders own 10.20% of the company's stock.

Hedge Funds Weigh In On Nuvalent

A number of hedge funds and other institutional investors have recently modified their holdings of the business. Paradigm Biocapital Advisors LP boosted its stake in shares of Nuvalent by 7.3% during the 4th quarter. Paradigm Biocapital Advisors LP now owns 5,363,379 shares of the company's stock worth $419,845,000 after acquiring an additional 363,379 shares in the last quarter. State Street Corp lifted its stake in Nuvalent by 4.2% during the second quarter. State Street Corp now owns 1,490,279 shares of the company's stock worth $113,708,000 after purchasing an additional 59,620 shares in the last quarter. Price T Rowe Associates Inc. MD increased its stake in Nuvalent by 11.8% during the 1st quarter. Price T Rowe Associates Inc. MD now owns 1,450,602 shares of the company's stock worth $102,878,000 after buying an additional 152,692 shares during the period. Wellington Management Group LLP raised its position in Nuvalent by 12.3% in the 1st quarter. Wellington Management Group LLP now owns 1,442,384 shares of the company's stock valued at $102,294,000 after purchasing an additional 157,809 shares in the last quarter. Finally, Woodline Partners LP increased its holdings in Nuvalent by 0.9% in the fourth quarter. Woodline Partners LP now owns 1,204,927 shares of the company's stock valued at $94,322,000 after buying an additional 11,248 shares during the last quarter. 97.26% of the stock is currently owned by institutional investors.

About Nuvalent

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.