Oncobiologics (NASDAQ:OTLK) Cut to "Sell" at Wall Street Zen

Key Points

• Wall Street Zen downgraded Oncobiologics (NASDAQ: OTLK) from “hold” to “sell,” adding fresh bearish sentiment to the stock.
• Other analysts are mixed: Ascendiant Capital Markets kept a buy rating and raised its target to $10, while the overall consensus remains Hold with an average target price of $6.50.
• The company recently reported a Q1 earnings miss, posting EPS of -$0.16 versus expectations of -$0.12 and revenue of just $0.13 million versus $4.39 million expected.

Oncobiologics (NASDAQ:OTLK - Get Free Report) was downgraded by investment analysts at Wall Street Zen from a "hold" rating to a "sell" rating in a research note issued to investors on Saturday.

A number of other analysts also recently issued reports on the stock. Weiss Ratings upgraded shares of Oncobiologics from a "sell (e+)" rating to a "sell (d-)" rating in a report on Wednesday, June 24th. Ascendiant Capital Markets boosted their target price on shares of Oncobiologics from $6.00 to $10.00 and gave the stock a "buy" rating in a report on Thursday, June 11th. Finally, BTIG Research restated a "neutral" rating on shares of Oncobiologics in a research note on Monday, May 18th. One research analyst has rated the stock with a Buy rating, five have given a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, Oncobiologics presently has an average rating of "Hold" and a consensus target price of $6.50.

Oncobiologics Price Performance

OTLK opened at $1.39 on Friday. The firm has a market cap of $206.54 million, a PE ratio of -1.19 and a beta of 0.77. The stock has a 50-day moving average price of $1.06 and a 200-day moving average price of $0.66. Oncobiologics has a 1 year low of $0.16 and a 1 year high of $3.39.

Oncobiologics (NASDAQ:OTLK - Get Free Report) last announced its quarterly earnings results on Friday, May 15th. The company reported ($0.16) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.12) by ($0.04). The firm had revenue of $0.13 million for the quarter, compared to analysts' expectations of $4.39 million. As a group, sell-side analysts anticipate that Oncobiologics will post -0.48 EPS for the current year.

Insider Buying and Selling

In other news, Director Ghiath M. Sukhtian acquired 8,539,709 shares of the business's stock in a transaction on Thursday, May 28th. The stock was bought at an average cost of $0.59 per share, for a total transaction of $5,038,428.31. Following the purchase, the director owned 22,092,068 shares in the company, valued at approximately $13,034,320.12. This represents a 63.01% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is available through this hyperlink. Company insiders own 1.80% of the company's stock.

Hedge Funds Weigh In On Oncobiologics

A number of institutional investors and hedge funds have recently bought and sold shares of OTLK. Goldman Sachs Group Inc. increased its position in Oncobiologics by 74.1% during the first quarter. Goldman Sachs Group Inc. now owns 103,524 shares of the company's stock worth $126,000 after purchasing an additional 44,063 shares during the last quarter. AQR Capital Management LLC increased its holdings in shares of Oncobiologics by 42.7% in the 1st quarter. AQR Capital Management LLC now owns 84,671 shares of the company's stock valued at $103,000 after acquiring an additional 25,351 shares during the period. Finally, Russell Investments Group Ltd. boosted its holdings in shares of Oncobiologics by 865.2% in the second quarter. Russell Investments Group Ltd. now owns 24,477 shares of the company's stock valued at $39,000 after acquiring an additional 21,941 shares in the last quarter. 11.20% of the stock is currently owned by institutional investors and hedge funds.

About Oncobiologics

Oncobiologics, Inc is a clinical-stage biopharmaceutical company specializing in the development of biosimilar therapeutics for cancer and autoimmune diseases. Leveraging recombinant DNA technology and advanced formulation platforms, the company aims to create high-quality, cost-effective alternatives to originator biologic drugs. Oncobiologics' research focus includes monoclonal antibodies and growth factors that support oncology treatment and immunomodulation.

Founded in 2005 and headquartered in Marlborough, Massachusetts, Oncobiologics maintains research facilities in the Greater Boston area and an integrated manufacturing site in Hyderabad, India, through its wholly owned subsidiary.

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