Immunovant (NASDAQ:IMVT) Shares Gap Up Following Better-Than-Expected Earnings

Key Points

• Immunovant shares jumped after opening at $33.32 versus the prior close of $30.53, and were last reported at $34.455.
• The company reported a quarterly loss of $0.47 per share, narrower than analysts’ expected loss of $0.74 and the year-ago loss of $0.73.
• Analysts’ consensus rating was Moderate Buy, with an average price target of $44; eight analysts rated the stock Buy, three Hold, and one Sell.

Immunovant, Inc. (NASDAQ:IMVT - Get Free Report) gapped up prior to trading on Monday following a better than expected earnings announcement. The stock had previously closed at $30.53, but opened at $33.32. Immunovant shares last traded at $34.4550, with a volume of 559,548 shares.

The company reported ($0.47) EPS for the quarter, topping the consensus estimate of ($0.74) by $0.27. During the same quarter in the previous year, the business earned ($0.73) EPS.

Wall Street Analyst Weigh In

A number of research firms recently commented on IMVT. Sanford C. Bernstein raised shares of Immunovant to a "hold" rating in a report on Wednesday, July 29th. Citigroup reiterated a "positive" rating on shares of Immunovant in a research report on Thursday, September 24th. UBS Group reissued a "buy" rating on shares of Immunovant in a research note on Wednesday, September 23rd. Weiss Ratings reissued a "sell (d-)" rating on shares of Immunovant in a research note on Friday, October 2nd. Finally, HC Wainwright restated a "buy" rating on shares of Immunovant in a report on Thursday, September 24th. Eight investment analysts have rated the stock with a Buy rating, three have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat, Immunovant currently has a consensus rating of "Moderate Buy" and an average target price of $44.00.

Insider Transactions at Immunovant

In other Immunovant news, COO Melanie Gloria sold 2,241 shares of Immunovant stock in a transaction dated Wednesday, October 7th. The shares were sold at an average price of $32.06, for a total transaction of $71,846.46. Following the completion of the transaction, the chief operating officer owned 217,060 shares in the company, valued at approximately $6,958,943.60. The trade was a 1.02% decrease in their ownership of the stock. The sale was disclosed in a legal 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, CFO Tiago Girão sold 6,606 shares of the company's stock in a transaction dated Wednesday, October 28th. The shares were sold at an average price of $28.50, for a total transaction of $188,271.00. Following the completion of the sale, the chief financial officer directly owned 234,192 shares in the company, valued at $6,674,472. This trade represents a 2.74% decrease in their position. 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 24,430 shares of company stock worth $787,852 in the last 90 days. Insiders own 1.90% of the company's stock.

Institutional Inflows and Outflows

Institutional investors have recently modified their holdings of the stock. BlackRock Inc. purchased a new position in Immunovant during the second quarter worth about $276,680,000. Two Seas Capital LP boosted its stake in Immunovant by 46.5% in the 3rd quarter. Two Seas Capital LP now owns 4,612,692 shares of the company's stock worth $155,817,000 after buying an additional 1,464,187 shares during the last quarter. Jennison Associates LLC boosted its stake in Immunovant by 356.4% in the 1st quarter. Jennison Associates LLC now owns 3,196,705 shares of the company's stock worth $79,406,000 after buying an additional 2,496,241 shares during the last quarter. ADAR1 Capital Management LLC grew its holdings in Immunovant by 8.0% in the 1st quarter. ADAR1 Capital Management LLC now owns 2,679,010 shares of the company's stock valued at $66,547,000 after buying an additional 198,042 shares during the period. Finally, Bank of America Corp DE purchased a new stake in Immunovant in the 2nd quarter valued at about $45,521,000. 47.08% of the stock is currently owned by institutional investors and hedge funds.

Immunovant Stock Performance

The firm has a fifty day simple moving average of $33.11 and a 200 day simple moving average of $32.11. The company has a market cap of $7.05 billion, a PE ratio of -12.10 and a beta of 0.95.

About Immunovant

Immunovant, Inc is a clinical-stage biopharmaceutical company developing treatments for autoimmune diseases. Its research focuses on inhibiting the neonatal Fc receptor (FcRn), a pathway involved in maintaining levels of disease-causing antibodies.

The company's investigational medicines include batoclimab and IMVT-1402, both designed to reduce circulating antibodies. Immunovant has studied or evaluated these candidates for conditions including myasthenia gravis, Graves' disease and other autoimmune disorders.

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