Edgewise Therapeutics (NASDAQ:EWTX) Shares Climb 14% - Time to Buy?

Key Points

• Edgewise Therapeutics shares rose 14% to about $44.33 in Friday’s mid-day trading, with volume roughly 14% above its daily average.
• Analysts’ consensus rating is Moderate Buy, based on nine Buy, one Hold and two Sell ratings; the average price target is $52.83.
• The company reported quarterly EPS of $9.65, well above the consensus estimate of a $0.53 loss, though analysts expect a full-year loss. Insiders sold shares recently, with the article noting the transactions were to cover tax withholding on vested equity awards.

Edgewise Therapeutics, Inc. (NASDAQ:EWTX - Get Free Report)'s share price shot up 14% during mid-day trading on Friday. The company traded as high as $44.18 and last traded at $44.3260. Approximately 1,450,164 shares were traded during trading, an increase of 14% from the average daily volume of 1,271,218 shares. The stock had previously closed at $38.87.

Analyst Ratings Changes

Several brokerages have recently commented on EWTX. Weiss Ratings reaffirmed a "sell (d-)" rating on shares of Edgewise Therapeutics in a research report on Thursday, October 15th. Oppenheimer started coverage on shares of Edgewise Therapeutics in a research report on Thursday, July 9th. They set an "outperform" rating and a $51.00 target price on the stock. William Blair began coverage on shares of Edgewise Therapeutics in a research note on Friday, October 16th. They set an "outperform" rating on the stock. Raymond James Financial restated an "underperform" rating and issued a $85.00 price target on shares of Edgewise Therapeutics in a report on Thursday. Finally, Evercore restated an "outperform" rating and issued a $55.00 price target on shares of Edgewise Therapeutics in a report on Monday, July 20th. Nine research analysts have rated the stock with a Buy rating, one has issued a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average target price of $52.83.

Edgewise Therapeutics Price Performance

The company has a fifty day moving average price of $40.84 and a 200 day moving average price of $36.46. The stock has a market cap of $4.87 billion, a P/E ratio of 5.46 and a beta of 0.39.

Edgewise Therapeutics (NASDAQ:EWTX - Get Free Report) last issued its earnings results on Wednesday, November 4th. The company reported $9.65 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.53) by $10.18. As a group, sell-side analysts expect that Edgewise Therapeutics, Inc. will post -2.09 earnings per share for the current fiscal year.

Insider Buying and Selling at Edgewise Therapeutics

In other Edgewise Therapeutics news, CMO Joanne M. Donovan sold 6,522 shares of the business's stock in a transaction that occurred on Wednesday, August 12th. The stock was sold at an average price of $43.85, for a total transaction of $285,989.70. Following the completion of the sale, the chief marketing officer directly owned 11,544 shares of the company's stock, valued at approximately $506,204.40. The trade was a 36.10% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CEO Kevin Koch sold 17,971 shares of the stock in a transaction that occurred on Wednesday, August 12th. The stock was sold at an average price of $43.68, for a total value of $784,973.28. Following the completion of the sale, the chief executive officer directly owned 52,488 shares of the company's stock, valued at approximately $2,292,675.84. This trade represents a 25.51% 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. Insiders sold a total of 38,329 shares of company stock worth $1,675,529 in the last quarter. 21.30% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several hedge funds have recently modified their holdings of the stock. Parallel Advisors LLC grew its stake in Edgewise Therapeutics by 64.9% in the 1st quarter. Parallel Advisors LLC now owns 1,032 shares of the company's stock valued at $33,000 after purchasing an additional 406 shares during the period. GAMMA Investing LLC raised its stake in shares of Edgewise Therapeutics by 26.5% during the 3rd quarter. GAMMA Investing LLC now owns 2,666 shares of the company's stock worth $108,000 after purchasing an additional 559 shares during the period. AlphaCentric Advisors LLC raised its stake in shares of Edgewise Therapeutics by 4.6% during the 3rd quarter. AlphaCentric Advisors LLC now owns 16,572 shares of the company's stock worth $673,000 after purchasing an additional 732 shares during the period. KBC Group NV bought a new stake in shares of Edgewise Therapeutics during the 1st quarter worth $49,000. Finally, China Universal Asset Management Co. Ltd. boosted its holdings in shares of Edgewise Therapeutics by 10.0% in the 3rd quarter. China Universal Asset Management Co. Ltd. now owns 20,216 shares of the company's stock worth $792,000 after buying an additional 1,843 shares during the last quarter.

About Edgewise Therapeutics

Edgewise Therapeutics, Inc is a clinical-stage biotechnology company focused on developing small-molecule therapies for severe muscle disorders. The company's research programs target the biology of skeletal and cardiac muscle, with the goal of addressing diseases for which treatment options remain limited.

Edgewise's lead product candidate is sevasemten (formerly EDG-5506), an oral therapy designed to reduce contraction-induced muscle damage associated with dystrophinopathies, including Duchenne and Becker muscular dystrophy.

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