Rezolute (NASDAQ:RZLT) Stock Sees Unusually High Call Option Buying

Key Points

• Unusual options activity: Traders bought 4,099 Rezolute call options, 618% above the average daily volume of 571 contracts.
• Institutional support and analyst optimism: Hedge funds and other institutions own 82.97% of the stock, while several analysts upgraded Rezolute or raised price targets. The stock has a “Moderate Buy” consensus rating and a $10.44 average target price.
• Mixed operating performance: Rezolute shares closed at $3.94, while the company reported quarterly EPS of negative $0.20, missing estimates of negative $0.15. The clinical-stage biotech is developing RZ358 for congenital hyperinsulinism and other metabolic diseases.

Rezolute, Inc. (NASDAQ:RZLT - Get Free Report) was the recipient of some unusual options trading activity on Monday. Traders acquired 4,099 call options on the company. This is an increase of 618% compared to the average daily volume of 571 call options.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in RZLT. Siren L.L.C. acquired a new position in Rezolute during the first quarter worth about $10,151,000. Dimensional Fund Advisors LP raised its holdings in Rezolute by 273.7% in the 1st quarter. Dimensional Fund Advisors LP now owns 530,229 shares of the company's stock valued at $1,617,000 after acquiring an additional 388,346 shares during the last quarter. Jennison Associates LLC purchased a new position in Rezolute in the 1st quarter worth approximately $10,489,000. Bank of New York Mellon Corp purchased a new position in Rezolute in the 2nd quarter worth approximately $1,104,000. Finally, Caitong International Asset Management Co. Ltd acquired a new position in shares of Rezolute during the 4th quarter worth approximately $494,000. Hedge funds and other institutional investors own 82.97% of the company's stock.

Analysts Set New Price Targets

Several analysts recently weighed in on RZLT shares. Craig Hallum upgraded Rezolute from a "hold" rating to a "buy" rating and increased their price target for the company from $4.00 to $7.00 in a report on Tuesday, September 29th. HC Wainwright raised their price objective on Rezolute from $5.00 to $10.00 and gave the stock a "buy" rating in a report on Friday, September 25th. HSBC raised shares of Rezolute to a "buy" rating in a research report on Friday, September 25th. Weiss Ratings reiterated a "sell (d-)" rating on shares of Rezolute in a research note on Friday, July 17th. Finally, Wall Street Zen lowered Rezolute from a "hold" rating to a "sell" rating in a report on Tuesday, June 30th. Eleven investment analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus target price of $10.44.

Rezolute Stock Performance

Shares of NASDAQ:RZLT traded down $0.07 during midday trading on Monday, reaching $3.94. 569,151 shares of the company's stock traded hands, compared to its average volume of 2,209,519. The company has a fifty day simple moving average of $4.49 and a two-hundred day simple moving average of $4.07. Rezolute has a 1 year low of $1.07 and a 1 year high of $11.46. The company has a market cap of $381.56 million, a P/E ratio of -5.20 and a beta of 0.53.

Rezolute (NASDAQ:RZLT - Get Free Report) last posted its quarterly earnings data on Thursday, September 24th. The company reported ($0.20) EPS for the quarter, missing the consensus estimate of ($0.15) by ($0.05). As a group, research analysts forecast that Rezolute will post -0.6 EPS for the current fiscal year.

Rezolute Company Profile

Rezolute, Inc is a clinical-stage biopharmaceutical company focused on developing therapies for metabolic diseases. The company's research is centered on conditions involving abnormal insulin signaling and glucose regulation, including rare disorders and complications associated with diabetes.

Rezolute's lead investigational product is RZ358, a human monoclonal antibody designed to reduce the effects of excessive insulin activity. The therapy is being developed primarily for congenital hyperinsulinism, a rare disorder in which the pancreas releases too much insulin and causes potentially dangerous episodes of low blood sugar.

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