Legend Biotech (NASDAQ:LEGN) Shares Up 5.8% - Still a Buy?

Key Points

• Legend Biotech shares rose 5.8% to about $19.92, although trading volume was 42% below the average session level.
• Analyst sentiment remains positive overall, with a consensus “Moderate Buy” rating and an average price target of $55.79; however, several firms recently downgraded the stock or reduced their targets.
• The company exceeded quarterly earnings and revenue estimates, reporting $0.09 EPS and $387.5 million in revenue, up 51.9% year over year, but remained unprofitable with a negative net margin and return on equity.

Legend Biotech Corporation Sponsored ADR (NASDAQ:LEGN - Get Free Report) traded up 5.8% during mid-day trading on Wednesday. The stock traded as high as $20.00 and last traded at $19.92. 1,415,838 shares were traded during mid-day trading, a decline of 42% from the average session volume of 2,435,720 shares. The stock had previously closed at $18.82.

Analyst Ratings Changes

A number of research firms have recently commented on LEGN. Weiss Ratings cut Legend Biotech from a "sell (d-)" rating to a "sell (e+)" rating in a research report on Wednesday, September 16th. JPMorgan Chase & Co. initiated coverage on Legend Biotech in a research report on Monday, July 13th. They issued a "neutral" rating and a $35.00 target price for the company. Oppenheimer lowered Legend Biotech from an "outperform" rating to a "market perform" rating and cut their price target for the stock from $75.00 to $40.00 in a research report on Wednesday, August 12th. Barclays decreased their price objective on Legend Biotech from $78.00 to $74.00 and set an "overweight" rating for the company in a report on Friday, September 11th. Finally, Morgan Stanley set a $65.00 target price on shares of Legend Biotech in a research report on Friday, September 4th. Nine analysts have rated the stock with a Buy rating, five have issued a Hold rating and one has assigned a Sell rating to the company's stock. According to data from MarketBeat, Legend Biotech currently has a consensus rating of "Moderate Buy" and a consensus target price of $55.79.

Legend Biotech Trading Up 5.3%

The firm has a 50 day simple moving average of $20.06 and a two-hundred day simple moving average of $23.57. The company has a market capitalization of $3.84 billion, a PE ratio of -79.38 and a beta of 0.40.

Legend Biotech (NASDAQ:LEGN - Get Free Report) last issued its quarterly earnings results on Tuesday, August 11th. The company reported $0.09 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.07 by $0.02. The business had revenue of $387.50 million for the quarter, compared to analyst estimates of $355.96 million. Legend Biotech had a negative net margin of 7.21% and a negative return on equity of 8.71%. The business's revenue was up 51.9% compared to the same quarter last year. During the same period in the previous year, the business posted $0.03 earnings per share. Research analysts expect that Legend Biotech Corporation Sponsored ADR will post -0.09 earnings per share for the current fiscal year.

Insider Transactions at Legend Biotech

In other news, CFO Carlos Santos sold 5,430 shares of the stock in a transaction that occurred on Monday, September 21st. The stock was sold at an average price of $9.14, for a total transaction of $49,630.20. Following the completion of the transaction, the chief financial officer directly owned 14,246 shares of the company's stock, valued at approximately $130,208.44. This represents a 27.60% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. Insiders own 0.02% of the company's stock.

Institutional Trading of Legend Biotech

Institutional investors have recently modified their holdings of the business. Parallel Advisors LLC grew its holdings in Legend Biotech by 173.9% during the first quarter. Parallel Advisors LLC now owns 2,084 shares of the company's stock worth $38,000 after acquiring an additional 1,323 shares during the period. Clearstead Advisors LLC lifted its holdings in Legend Biotech by 310.7% in the fourth quarter. Clearstead Advisors LLC now owns 3,479 shares of the company's stock valued at $76,000 after acquiring an additional 2,632 shares during the period. Caitong International Asset Management Co. Ltd boosted its position in shares of Legend Biotech by 1,730.3% during the 4th quarter. Caitong International Asset Management Co. Ltd now owns 3,569 shares of the company's stock worth $78,000 after purchasing an additional 3,374 shares in the last quarter. IFM Investors Pty Ltd purchased a new stake in shares of Legend Biotech during the 1st quarter worth $81,000. Finally, Public Employees Retirement System of Ohio acquired a new position in shares of Legend Biotech during the 2nd quarter worth $92,000. 70.89% of the stock is currently owned by hedge funds and other institutional investors.

About Legend Biotech

Legend Biotech Corporation NASDAQ: LEGN is a global biotechnology company focused on developing, manufacturing and commercializing novel cell therapies for the treatment of cancer and other serious diseases. The company's work centers primarily on chimeric antigen receptor T-cell (CAR-T) therapies designed to harness a patient's immune system to recognize and attack cancer cells.

Legend Biotech's lead product is CARVYKTI (ciltacabtagene autoleucel), a B-cell maturation antigen (BCMA)-directed CAR-T therapy for certain adults with relapsed or refractory multiple myeloma.

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