Dyne Therapeutics (NASDAQ:DYN) Trading Down 5.6% - Time to Sell?

Key Points

• Dyne Therapeutics shares fell 5.6% to about $17.05, with trading volume 48% below the daily average. The stock remains below its 50-day moving average of $24.12.
• Analyst views are mixed: JPMorgan downgraded the stock to “underweight” with a $10 target, while Morgan Stanley maintained an “overweight” rating with a reduced $36 target. Overall, analysts assign a “Moderate Buy” rating and a consensus target of $32.17.
• The company reported a quarterly loss of $1.08 per share, worse than the expected $0.75 loss, while insiders sold roughly $99.7 million of stock over the past quarter. Dyne is developing genetic medicines for muscle diseases, including myotonic dystrophy and Duchenne muscular dystrophy.

Dyne Therapeutics, Inc. (NASDAQ:DYN - Get Free Report)'s stock price traded down 5.6% during trading on Friday . The company traded as low as $16.99 and last traded at $17.0490. 1,153,227 shares traded hands during mid-day trading, a decline of 48% from the average daily volume of 2,200,641 shares. The stock had previously closed at $18.06.

Wall Street Analyst Weigh In

Several analysts have issued reports on DYN shares. JPMorgan Chase & Co. cut Dyne Therapeutics from a "neutral" rating to an "underweight" rating and dropped their target price for the company from $17.00 to $10.00 in a research report on Wednesday, September 9th. Morgan Stanley decreased their price objective on Dyne Therapeutics from $45.00 to $36.00 and set an "overweight" rating for the company in a research note on Wednesday, September 9th. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Dyne Therapeutics in a research report on Friday, July 17th. TD Cowen began coverage on Dyne Therapeutics in a research note on Friday, June 26th. They issued a "buy" rating on the stock. Finally, HC Wainwright reiterated a "buy" rating and issued a $50.00 target price on shares of Dyne Therapeutics in a report on Monday, August 17th. Two equities research analysts have rated the stock with a Strong Buy rating, eleven have given a Buy rating, one has assigned a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, Dyne Therapeutics currently has an average rating of "Moderate Buy" and a consensus price target of $32.17.

Dyne Therapeutics Trading Down 5.7%

The firm has a market cap of $3.18 billion, a PE ratio of -5.11 and a beta of 1.08. The company has a debt-to-equity ratio of 0.28, a current ratio of 12.02 and a quick ratio of 12.02. The stock's fifty day simple moving average is $24.12 and its 200-day simple moving average is $20.62.

Dyne Therapeutics (NASDAQ:DYN - Get Free Report) last released its quarterly earnings data on Thursday, July 30th. The company reported ($1.08) EPS for the quarter, missing the consensus estimate of ($0.75) by ($0.33). On average, sell-side analysts forecast that Dyne Therapeutics, Inc. will post -3.59 earnings per share for the current year.

Insider Buying and Selling

In related news, insider Douglas Kerr sold 3,745 shares of the business's stock in a transaction on Friday, September 4th. The shares were sold at an average price of $24.35, for a total value of $91,190.75. Following the completion of the transaction, the insider directly owned 163,854 shares in the company, valued at $3,989,844.90. The trade was a 2.23% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Jason P. Rhodes sold 2,160,516 shares of the stock in a transaction dated Friday, August 14th. The stock was sold at an average price of $25.00, for a total transaction of $54,012,900.00. Following the sale, the director directly owned 428,946 shares in the company, valued at approximately $10,723,650. The trade was a 83.43% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold a total of 4,150,974 shares of company stock valued at $99,697,629 over the last quarter. 9.46% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Large investors have recently made changes to their positions in the business. NewEdge Advisors LLC purchased a new position in Dyne Therapeutics during the second quarter valued at $300,000. Nykredit A S purchased a new stake in Dyne Therapeutics during the 2nd quarter worth approximately $113,000. Moore Capital Management LP raised its holdings in shares of Dyne Therapeutics by 288.2% during the second quarter. Moore Capital Management LP now owns 305,794 shares of the company's stock valued at $6,792,000 after acquiring an additional 227,029 shares during the last quarter. Two Sigma Securities LLC purchased a new position in shares of Dyne Therapeutics in the second quarter valued at approximately $222,000. Finally, Alyeska Investment Group L.P. purchased a new position in shares of Dyne Therapeutics in the second quarter valued at approximately $5,448,000. 96.68% of the stock is owned by institutional investors and hedge funds.

About Dyne Therapeutics

Dyne Therapeutics, Inc is a biotechnology company focused on developing treatments for genetically driven muscle diseases. The company uses its FORCE platform, which is designed to deliver oligonucleotide therapeutics to skeletal muscle and other tissues by combining muscle-targeting antibodies with genetic medicines.

Dyne's research and development programs are aimed at conditions in which the underlying genetic mutations impair muscle function. Its pipeline has included DYNE-101 for myotonic dystrophy type 1 and DYNE-251 for Duchenne muscular dystrophy in patients with mutations amenable to exon 51 skipping.

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