Edgewise Therapeutics (NASDAQ:EWTX) Shares Gap Up on Strong Earnings

Key Points

• Edgewise Therapeutics reported EPS of $9.65, far above analysts’ consensus estimate of a $0.52 loss per share.
• Shares opened at $43, up from the prior close of $37.53, but later traded at $39.54.
• Analysts’ consensus rating is “Moderate Buy,” with an average price target of $51.25. Recent insider share sales were disclosed as covering tax withholding on vested equity awards.

Edgewise Therapeutics, Inc. (NASDAQ:EWTX - Get Free Report) shares gapped up before the market opened on Thursday following a stronger than expected earnings report. The stock had previously closed at $37.53, but opened at $43.00. Edgewise Therapeutics shares last traded at $39.54, with a volume of 886,503 shares trading hands.

The company reported $9.65 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.52) by $10.17.

Analyst Ratings Changes

Several brokerages have recently weighed in on EWTX. Wall Street Zen upgraded shares of Edgewise Therapeutics from a "sell" rating to a "hold" rating in a research note on Sunday, October 4th. HC Wainwright reaffirmed a "buy" rating on shares of Edgewise Therapeutics in a report on Wednesday, October 14th. William Blair assumed coverage on Edgewise Therapeutics in a research report on Friday, October 16th. They set an "outperform" rating on the stock. Oppenheimer started coverage on Edgewise Therapeutics in a research report on Thursday, July 9th. They set an "outperform" rating and a $51.00 target price on the stock. Finally, Wedbush cut their price target on Edgewise Therapeutics from $53.00 to $51.00 and set an "outperform" rating for the company in a report on Thursday. One analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $51.25.

Insider Activity

In related news, insider Alan J. Russell sold 5,901 shares of the company's stock in a transaction on Wednesday, August 12th. The shares were sold at an average price of $43.73, for a total value of $258,050.73. Following the completion of the transaction, the insider owned 31,466 shares of the company's stock, valued at approximately $1,376,008.18. This represents a 15.79% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, General Counsel John Moore sold 5,016 shares of the stock in a transaction on Wednesday, August 12th. The stock was sold at an average price of $43.82, for a total value of $219,801.12. Following the completion of the sale, the general counsel owned 17,697 shares of the company's stock, valued at $775,482.54. The trade was a 22.08% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last ninety days, insiders sold 38,329 shares of company stock valued at $1,675,529. 21.30% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Edgewise Therapeutics

A number of institutional investors and hedge funds have recently bought and sold shares of the business. Pictet Asset Management Holding SA boosted its stake in shares of Edgewise Therapeutics by 10,434.8% in the third quarter. Pictet Asset Management Holding SA now owns 661,586 shares of the company's stock worth $26,860,000 after acquiring an additional 655,306 shares during the period. AlphaCentric Advisors LLC boosted its stake in Edgewise Therapeutics by 4.6% in 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. Alps Advisors Inc. boosted its stake in Edgewise Therapeutics by 32.2% in the 3rd quarter. Alps Advisors Inc. now owns 143,864 shares of the company's stock worth $5,841,000 after purchasing an additional 35,069 shares during the period. Mirae Asset Global Investments Co. Ltd. purchased a new stake in Edgewise Therapeutics during the 3rd quarter valued at approximately $225,000. Finally, Profund Advisors LLC grew its holdings in Edgewise Therapeutics by 301.5% during the 3rd quarter. Profund Advisors LLC now owns 36,798 shares of the company's stock valued at $1,494,000 after buying an additional 27,634 shares in the last quarter.

Edgewise Therapeutics Price Performance

The stock has a market cap of $4.25 billion, a P/E ratio of -21.19 and a beta of 0.39. The firm's 50-day moving average price is $40.95 and its 200-day moving average price is $36.40.

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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