ImmunityBio (NASDAQ:IBRX) Shares Gap Down Following Weak Earnings

Key Points

• ImmunityBio shares fell sharply after the company reported quarterly EPS of -$0.09, missing the -$0.07 consensus, and revenue of $48.84 million versus expectations of $59.23 million. Shares opened at $7.22 after closing at $8.64 and were last reported at $6.77.
• Analyst sentiment remained mostly positive: six analysts rated the stock Buy and one rated it Sell, giving ImmunityBio a “Moderate Buy” consensus and an average price target of $16.
• Two directors sold shares under pre-arranged trading plans, while institutional ownership changes were mixed; BlackRock increased its stake by 29.4% and Doliver Advisors more than doubled its position.

ImmunityBio, Inc. (NASDAQ:IBRX - Get Free Report)'s stock price gapped down before the market opened on Monday following a dissappointing earnings announcement. The stock had previously closed at $8.64, but opened at $7.22. ImmunityBio shares last traded at $6.7730, with a volume of 13,804,790 shares traded.

The company reported ($0.09) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.07) by ($0.02). The business had revenue of $48.84 million during the quarter, compared to the consensus estimate of $59.23 million.

Analyst Ratings Changes

Several analysts have recently commented on the stock. Jefferies Financial Group raised their target price on shares of ImmunityBio from $12.00 to $14.00 and gave the stock a "buy" rating in a research note on Wednesday, October 14th. Piper Sandler reiterated an "overweight" rating and set a $16.00 price target on shares of ImmunityBio in a research note on Wednesday, October 14th. HC Wainwright reissued a "buy" rating and set a $15.00 price target on shares of ImmunityBio in a report on Thursday, October 15th. Finally, Weiss Ratings restated a "sell (d-)" rating on shares of ImmunityBio in a research report on Tuesday, October 6th. Six analysts have rated the stock with a Buy rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat.com, ImmunityBio has an average rating of "Moderate Buy" and an average target price of $16.00.

Insider Activity

In related news, Director Barry Simon sold 25,000 shares of the firm's stock in a transaction that occurred on Monday, October 5th. The shares were sold at an average price of $10.75, for a total transaction of $268,750.00. Following the sale, the director owned 2,777,788 shares in the company, valued at approximately $29,861,221. This trade represents a 0.89% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Cheryl Cohen sold 81,056 shares of the firm's stock in a transaction on Friday, October 2nd. The stock was sold at an average price of $10.50, for a total value of $851,088.00. Following the sale, the director owned 100,309 shares in the company, valued at $1,053,244.50. This trade represents a 44.69% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. 66.10% of the stock is owned by company insiders.

Institutional Investors Weigh In On ImmunityBio

Several large investors have recently made changes to their positions in IBRX. Doliver Advisors LP grew its position in shares of ImmunityBio by 110.0% during the 3rd quarter. Doliver Advisors LP now owns 210,000 shares of the company's stock worth $1,982,000 after buying an additional 110,000 shares during the period. Hussman Strategic Advisors Inc. acquired a new position in shares of ImmunityBio during the 2nd quarter valued at $1,287,000. Tidal Investments LLC acquired a new position in shares of ImmunityBio during the 2nd quarter valued at $2,207,000. SEB Asset Management AB acquired a new position in shares of ImmunityBio during the 1st quarter valued at $18,770,000. Finally, BlackRock Inc. boosted its stake in ImmunityBio by 29.4% during the second quarter. BlackRock Inc. now owns 34,083,262 shares of the company's stock worth $298,399,000 after acquiring an additional 7,736,819 shares in the last quarter. Institutional investors and hedge funds own 8.58% of the company's stock.

ImmunityBio Stock Down 21.0%

The firm has a market capitalization of $7.24 billion, a P/E ratio of -6.98 and a beta of 0.17. The company's 50 day moving average is $8.74 and its 200-day moving average is $7.96.

ImmunityBio Company Profile

ImmunityBio is a biotechnology company that develops immunotherapies for cancer and infectious diseases. Its research combines approaches including immune-modulating biologics, cell therapies and vaccine-based treatments, with a focus on activating the body's natural and adaptive immune responses.

The company's lead product, Anktiva (nogapendekin alfa inbakicept-pmln), received U.S. Food and Drug Administration approval in 2024 for use with Bacillus Calmette-Guérin (BCG) in adults with BCG-unresponsive non-muscle-invasive bladder cancer with carcinoma in situ, with or without papillary tumors.

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