Investors Buy High Volume of Call Options on Edgewise Therapeutics (NASDAQ:EWTX)

Key Points

• Call-option activity surged: Investors purchased 6,104 EWTX call options, about 1,085% above the average volume of 515 contracts, signaling unusually strong speculative interest.
• Shares declined 2.2% to $45.92 despite trading near their 52-week high of $48.51. Edgewise also reported a quarterly loss of $0.53 per share, missing analyst expectations by $0.06.
• Analyst sentiment remains positive: The stock has a “Moderate Buy” consensus rating and a $50.33 average price target, while insiders have sold approximately $9.6 million of shares over the past three months, primarily to cover tax obligations.

Edgewise Therapeutics, Inc. (NASDAQ:EWTX - Get Free Report) saw unusually large options trading on Friday. Stock investors purchased 6,104 call options on the company. This represents an increase of approximately 1,085% compared to the average volume of 515 call options.

Edgewise Therapeutics Trading Down 2.2%

Shares of EWTX stock traded down $1.02 on Friday, reaching $45.92. 190,694 shares of the company's stock were exchanged, compared to its average volume of 1,192,347. The company's fifty day simple moving average is $42.61 and its 200 day simple moving average is $37.06. Edgewise Therapeutics has a 52 week low of $14.09 and a 52 week high of $48.51. The stock has a market capitalization of $4.99 billion, a PE ratio of -24.82 and a beta of 0.32.

Edgewise Therapeutics (NASDAQ:EWTX - Get Free Report) last issued its earnings results on Thursday, August 6th. The company reported ($0.53) earnings per share for the quarter, missing analysts' consensus estimates of ($0.47) by ($0.06). As a group, sell-side analysts predict that Edgewise Therapeutics will post -2.09 earnings per share for the current fiscal year.

Insider Activity at Edgewise Therapeutics

In other news, insider Alan J. Russell sold 5,901 shares of the business's stock in a transaction that occurred on Wednesday, August 12th. The shares were sold at an average price of $43.73, for a total value of $258,050.73. Following the completion of the sale, the insider directly owned 31,466 shares in the company, valued at approximately $1,376,008.18. The trade was a 15.79% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, General Counsel John Moore sold 5,016 shares of the stock in a transaction dated Wednesday, August 12th. The shares were sold at an average price of $43.82, for a total value of $219,801.12. Following the sale, the general counsel owned 17,697 shares of the company's stock, valued at $775,482.54. This represents a 22.08% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last three months, insiders sold 238,329 shares of company stock valued at $9,557,529. Company insiders own 21.30% of the company's stock.

Hedge Funds Weigh In On Edgewise Therapeutics

Large investors have recently bought and sold shares of the business. Parallel Advisors LLC raised its position in shares of Edgewise Therapeutics by 64.9% in the 1st quarter. Parallel Advisors LLC now owns 1,032 shares of the company's stock worth $33,000 after acquiring an additional 406 shares in the last quarter. KBC Group NV bought a new position in Edgewise Therapeutics in the first quarter worth about $49,000. Seven Fleet Capital Management LP purchased a new stake in shares of Edgewise Therapeutics during the fourth quarter valued at about $50,000. Squarepoint Ops LLC bought a new stake in shares of Edgewise Therapeutics in the 2nd quarter valued at about $230,000. Finally, VIRGINIA RETIREMENT SYSTEMS ET Al purchased a new position in shares of Edgewise Therapeutics in the 2nd quarter worth approximately $240,000.

Wall Street Analyst Weigh In

A number of research analysts have recently commented on EWTX shares. The Goldman Sachs Group raised their target price on Edgewise Therapeutics from $32.00 to $36.00 and gave the company a "neutral" rating in a research note on Tuesday, August 11th. Royal Bank Of Canada boosted their price target on Edgewise Therapeutics from $48.00 to $59.00 and gave the company an "outperform" rating in a research note on Wednesday, June 17th. Wall Street Zen upgraded shares of Edgewise Therapeutics from a "sell" rating to a "hold" rating in a research note on Saturday, September 5th. HC Wainwright reaffirmed a "buy" rating and issued a $45.00 target price on shares of Edgewise Therapeutics in a report on Tuesday, June 16th. Finally, Wedbush lifted their target price on Edgewise Therapeutics from $46.00 to $52.00 and gave the company an "outperform" rating in a research report on Monday, June 1st. One research analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $50.33.

Edgewise Therapeutics Company Profile

Edgewise Therapeutics, Inc is a clinical-stage biotechnology company focused on developing small-molecule medicines for severe muscle disorders. The company's research is centered on therapies intended to address the biological mechanisms that contribute to muscle damage and impaired function in diseases affecting skeletal and cardiac muscle.

Edgewise's lead program is sevasemten (also known as EDG-5506), an orally administered investigational therapy designed to reduce contraction-related muscle injury by selectively modulating fast skeletal muscle contractility.

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