Cytokinetics Sees Unusually High Options Volume (NASDAQ:CYTK)

Key Points

• Call-option trading surged: Traders bought 15,262 CYTK call options, about 1,048% above the average daily volume of 1,329.
• Shares fell 3.8% to $56.32 on Thursday. The company’s latest quarterly loss was narrower than analysts expected, and revenue of $47.56 million exceeded estimates.
• Analyst sentiment was broadly positive, with 19 Buy ratings and a consensus price target of $106.67; company insiders also sold 173,426 shares worth about $11.9 million in the last quarter.

Cytokinetics, Incorporated (NASDAQ:CYTK - Get Free Report) was the recipient of some unusual options trading activity on Thursday. Stock traders bought 15,262 call options on the stock. This is an increase of approximately 1,048% compared to the average daily volume of 1,329 call options.

Insider Activity

In other news, CEO Robert Blum sold 7,500 shares of the business's stock in a transaction on Monday, November 2nd. The shares were sold at an average price of $62.81, for a total transaction of $471,075.00. Following the completion of the sale, the chief executive officer owned 278,544 shares of the company's stock, valued at $17,495,348.64. The trade was a 2.62% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Fady Malik sold 3,500 shares of the company's stock in a transaction dated Tuesday, November 3rd. The stock was sold at an average price of $62.93, for a total value of $220,255.00. Following the completion of the sale, the executive vice president owned 153,902 shares of the company's stock, valued at approximately $9,685,052.86. The trade was a 2.22% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 173,426 shares of company stock valued at $11,934,640 in the last quarter. 2.60% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the business. Integrated Wealth Concepts LLC acquired a new stake in shares of Cytokinetics in the second quarter valued at $36,000. Physician Wealth Advisors Inc. grew its holdings in shares of Cytokinetics by 810.2% in the third quarter. Physician Wealth Advisors Inc. now owns 446 shares of the biopharmaceutical company's stock valued at $29,000 after purchasing an additional 397 shares in the last quarter. V Square Quantitative Management LLC increased its stake in Cytokinetics by 71.5% during the 3rd quarter. V Square Quantitative Management LLC now owns 458 shares of the biopharmaceutical company's stock worth $30,000 after buying an additional 191 shares during the period. Manchester Capital Management LLC acquired a new stake in Cytokinetics during the 3rd quarter worth approximately $43,000. Finally, Allworth Financial LP boosted its position in Cytokinetics by 35.6% in the 3rd quarter. Allworth Financial LP now owns 732 shares of the biopharmaceutical company's stock valued at $48,000 after buying an additional 192 shares during the period.

Cytokinetics Trading Down 3.8%

Shares of NASDAQ:CYTK traded down $2.21 on Thursday, hitting $56.32. 649,233 shares of the company were exchanged, compared to its average volume of 2,118,352. The firm has a market capitalization of $7.85 billion, a P/E ratio of -9.32 and a beta of 0.45. Cytokinetics has a 1-year low of $53.55 and a 1-year high of $88.31. The stock's 50 day moving average price is $64.78 and its 200 day moving average price is $69.86.

Cytokinetics (NASDAQ:CYTK - Get Free Report) last announced its quarterly earnings results on Wednesday, November 4th. The biopharmaceutical company reported ($1.37) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($1.43) by $0.06. The company had revenue of $47.56 million during the quarter, compared to analyst estimates of $41.88 million. During the same period in the previous year, the firm posted ($2.55) earnings per share. The company's revenue was up 2356.5% compared to the same quarter last year. On average, equities analysts predict that Cytokinetics will post -5.85 EPS for the current fiscal year.

Analyst Ratings Changes

Several research firms have recently issued reports on CYTK. Citigroup raised their price objective on Cytokinetics from $99.00 to $105.00 and gave the company a "buy" rating in a research note on Thursday, November 5th. Weiss Ratings restated a "sell (d-)" rating on shares of Cytokinetics in a report on Thursday, October 15th. Barclays increased their price target on Cytokinetics from $95.00 to $110.00 and gave the company an "overweight" rating in a report on Thursday, August 13th. Needham & Company LLC lifted their price objective on shares of Cytokinetics from $102.00 to $112.00 and gave the stock a "buy" rating in a research note on Friday, August 7th. Finally, UBS Group reiterated a "buy" rating and set a $104.00 price objective on shares of Cytokinetics in a research report on Wednesday, October 14th. Nineteen equities research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat, the stock has a consensus rating of "Moderate Buy" and a consensus price target of $106.67.

About Cytokinetics

Cytokinetics is a biopharmaceutical company focused on discovering and developing medicines that target the biology of muscle function. Its research centers on therapies for conditions involving impaired cardiac muscle performance. The company's work includes aficamten, a cardiac myosin inhibitor developed for hypertrophic cardiomyopathy, and other drug candidates designed to affect muscle contraction. Cytokinetics conducts research and clinical development through programs that may involve patients and collaborators in multiple countries.

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