CG Oncology (NASDAQ:CGON) Shares Climb 10.2% Following Strong Earnings

Key Points

• CG Oncology shares rose 10.2% after the company reported quarterly EPS of a loss of $0.64, beating analysts’ expected loss of $0.83. Revenue was $1.60 million, above the $0.55 million consensus estimate.
• Analyst sentiment is mixed but leans positive: eight analysts rate the stock Buy, one Hold, and one Sell, for a consensus “Moderate Buy” rating and an average price target of $87.50.
• CG Oncology is a clinical-stage biotech developing cancer therapies, including its lead investigational bladder-cancer treatment, cretostimogene grenadenorep.

CG Oncology, Inc. (NASDAQ:CGON - Get Free Report)'s share price traded up 10.2% during mid-day trading on Friday following a better than expected earnings announcement. The stock traded as high as $69.79 and last traded at $71.3930. Approximately 57,653 shares traded hands during mid-day trading, a decline of 95% from the average session volume of 1,076,375 shares. The stock had previously closed at $64.80.

The company reported ($0.64) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.83) by $0.19. CG Oncology had a negative return on equity of 25.20% and a negative net margin of 3,602.68%. The business had revenue of $1.60 million for the quarter, compared to analyst estimates of $0.55 million.

Wall Street Analysts Forecast Growth

CGON has been the topic of several recent analyst reports. Weiss Ratings restated a "sell (d-)" rating on shares of CG Oncology in a report on Thursday, October 15th. Wall Street Zen lowered shares of CG Oncology from a "sell" rating to a "strong sell" rating in a report on Saturday, August 8th. Royal Bank Of Canada dropped their price target on shares of CG Oncology from $81.00 to $79.00 and set an "outperform" rating for the company in a research report on Friday, August 7th. Piper Sandler raised their price target on shares of CG Oncology from $82.00 to $85.00 and gave the stock an "overweight" rating in a report on Friday, August 7th. Finally, HC Wainwright restated a "buy" rating and issued a $100.00 price objective on shares of CG Oncology in a research report on Wednesday, July 29th. Eight research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat, the company has a consensus rating of "Moderate Buy" and an average target price of $87.50.

Insider Transactions at CG Oncology

In other CG Oncology news, Director Leonard E. Post sold 1,000 shares of the firm's stock in a transaction dated Thursday, October 15th. The shares were sold at an average price of $62.06, for a total value of $62,060.00. Following the completion of the sale, the director directly owned 1,000 shares in the company, valued at $62,060. This trade represents a 50.00% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available at this link. Insiders have sold 3,000 shares of company stock valued at $209,580 over the last ninety days. 4.80% of the stock is owned by corporate insiders.

Institutional Inflows and Outflows

Institutional investors have recently made changes to their positions in the company. WINTON GROUP Ltd purchased a new position in shares of CG Oncology during the second quarter valued at approximately $718,000. Legal & General Group Plc bought a new stake in shares of CG Oncology in the 2nd quarter worth approximately $2,846,000. Jefferies Financial Group Inc. purchased a new stake in shares of CG Oncology in the 2nd quarter worth approximately $54,705,000. Jupiter Topco LLC purchased a new stake in shares of CG Oncology in the 2nd quarter worth approximately $1,634,000. Finally, Bank of New York Mellon Corp bought a new position in CG Oncology during the 2nd quarter valued at approximately $16,584,000. Institutional investors own 26.56% of the company's stock.

CG Oncology Stock Performance

The company has a market cap of $6.47 billion, a P/E ratio of -27.14 and a beta of 0.35. The stock has a 50-day moving average of $68.29 and a two-hundred day moving average of $65.99.

CG Oncology Company Profile

CG Oncology, Inc NASDAQ: CGON is a clinical-stage biotechnology company focused on developing therapies for bladder cancer and other cancers affecting the urinary tract. The company is developing medicines designed to stimulate the immune system and target tumor cells within the bladder.

Its lead product candidate is cretostimogene grenadenorep, an investigational intravesical therapy based on an oncolytic adenovirus. The treatment is designed to be administered directly into the bladder, where it may selectively infect cancer cells, promote their destruction and activate an immune response against the tumor.

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