Corcept Therapeutics (NASDAQ:CORT) Shares Down 14.5% - Here's Why

Key Points

• Corcept Therapeutics shares fell 14.5% to about $91.86 in mid-day trading, with volume roughly 90% below the average session level.
• Despite the sell-off, analysts remain broadly positive, with a consensus “Moderate Buy” rating and an average price target of $138.17.
• The company recently beat quarterly expectations, reporting $0.36 in EPS versus $0.02 expected and 31.7% year-over-year revenue growth, although insiders sold 454,748 shares worth approximately $52.8 million over the last quarter.

Corcept Therapeutics Incorporated (NASDAQ:CORT - Get Free Report) shares traded down 14.5% during mid-day trading on Friday. The company traded as low as $102.66 and last traded at $91.8620. 143,949 shares traded hands during trading, a decline of 90% from the average session volume of 1,461,517 shares. The stock had previously closed at $107.50.

Wall Street Analysts Forecast Growth

CORT has been the subject of a number of research reports. Wall Street Zen upgraded Corcept Therapeutics from a "hold" rating to a "strong-buy" rating in a report on Saturday, August 1st. Piper Sandler reaffirmed an "overweight" rating and issued a $165.00 target price (up from $88.00) on shares of Corcept Therapeutics in a research note on Thursday, July 30th. HC Wainwright reaffirmed a "buy" rating and issued a $165.00 price objective on shares of Corcept Therapeutics in a research note on Friday, September 18th. Zacks Research upgraded shares of Corcept Therapeutics from a "hold" rating to a "strong-buy" rating in a research report on Monday, September 28th. Finally, Truist Financial began coverage on shares of Corcept Therapeutics in a research note on Tuesday, August 18th. They issued a "buy" rating and a $164.00 price target for the company. One investment analyst has rated the stock with a Strong Buy rating, five have given a Buy rating, one has given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, Corcept Therapeutics currently has a consensus rating of "Moderate Buy" and a consensus price target of $138.17.

Corcept Therapeutics Stock Performance

The stock's 50-day moving average price is $115.73 and its two-hundred day moving average price is $89.04. The stock has a market capitalization of $9.27 billion, a PE ratio of 204.54 and a beta of 0.40.

Corcept Therapeutics (NASDAQ:CORT - Get Free Report) last released its earnings results on Wednesday, July 29th. The biotechnology company reported $0.36 EPS for the quarter, topping analysts' consensus estimates of $0.02 by $0.34. Corcept Therapeutics had a return on equity of 8.26% and a net margin of 6.52%. The firm had revenue of $256.15 million for the quarter, compared to analysts' expectations of $221.15 million. During the same period in the prior year, the firm posted $0.29 earnings per share. The company's quarterly revenue was up 31.7% on a year-over-year basis. On average, analysts predict that Corcept Therapeutics Incorporated will post 1.83 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, insider Joseph Lyon sold 9,190 shares of Corcept Therapeutics stock in a transaction that occurred on Friday, October 2nd. The shares were sold at an average price of $116.13, for a total value of $1,067,234.70. Following the completion of the sale, the insider directly owned 5,683 shares in the company, valued at $659,966.79. The trade was a 61.79% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, Director James N. Wilson sold 10,000 shares of the stock in a transaction that occurred on Thursday, October 15th. The shares were sold at an average price of $114.81, for a total transaction of $1,148,100.00. Following the transaction, the director owned 1,054,543 shares in the company, valued at approximately $121,072,081.83. This trade represents a 0.94% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold a total of 454,748 shares of company stock valued at $52,786,210 over the last quarter. Corporate insiders own 20.70% of the company's stock.

Institutional Trading of Corcept Therapeutics

Hedge funds have recently bought and sold shares of the company. Alberta Investment Management Corp purchased a new position in shares of Corcept Therapeutics in the second quarter worth approximately $9,843,000. BlackRock Inc. bought a new position in Corcept Therapeutics in the second quarter worth approximately $1,080,964,000. NewEdge Wealth LLC bought a new position in Corcept Therapeutics in the second quarter worth approximately $3,034,000. VIRGINIA RETIREMENT SYSTEMS ET Al purchased a new position in shares of Corcept Therapeutics during the 2nd quarter worth $2,311,000. Finally, Evanson Financial LLC purchased a new position in shares of Corcept Therapeutics during the 2nd quarter worth $1,085,000. Hedge funds and other institutional investors own 93.61% of the company's stock.

About Corcept Therapeutics

Corcept Therapeutics Incorporated NASDAQ: CORT is a commercial-stage biopharmaceutical company focused on developing medicines that selectively modulate the glucocorticoid receptor. The company's research is based on the role of excess cortisol in metabolic, psychiatric, oncologic and other serious medical conditions.

Corcept's primary marketed product is Korlym (mifepristone), an oral glucocorticoid receptor antagonist approved in the United States to control hyperglycemia secondary to endogenous Cushing's syndrome in adults with type 2 diabetes or glucose intolerance who are not candidates for surgery or have not responded adequately to surgery.

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