Legend Biotech (NASDAQ:LEGN) Stock Price Crosses Above 50 Day Moving Average - Should You Sell?

Key Points

• Legend Biotech shares rose above their 50-day moving average, reaching $21.04 before closing at $20.39, compared with a 50-day average of $19.52.
• Analyst sentiment remains broadly positive, with a consensus rating of “Moderate Buy” and an average price target of $54.69, although some firms recently downgraded the stock or lowered their targets.
• The company exceeded quarterly earnings and revenue expectations, with revenue up 51.9% year over year, but it remains unprofitable. Insiders recently sold shares, while institutional investors own 70.89% of the stock.

Legend Biotech Corporation Sponsored ADR (NASDAQ:LEGN - Get Free Report) shares passed above its 50 day moving average during trading on Monday. The stock has a 50 day moving average of $19.52 and traded as high as $21.04. Legend Biotech shares last traded at $20.39, with a volume of 2,369,606 shares trading hands.

Wall Street Analyst Weigh In

Several equities research analysts have issued reports on LEGN shares. HC Wainwright reaffirmed a "buy" rating and set a $65.00 price target on shares of Legend Biotech in a research note on Monday, September 28th. Oppenheimer lowered Legend Biotech from an "outperform" rating to a "market perform" rating and reduced their price objective for the company from $75.00 to $40.00 in a research report on Wednesday, August 12th. Weiss Ratings cut Legend Biotech from a "sell (d-)" rating to a "sell (e+)" rating in a report on Monday, October 19th. TD Cowen decreased their price objective on Legend Biotech from $29.00 to $24.00 and set a "hold" rating on the stock in a report on Wednesday, August 12th. Finally, Raymond James Financial restated an "outperform" rating and issued a $58.00 target price on shares of Legend Biotech in a research report on Monday, July 27th. Nine research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, Legend Biotech has an average rating of "Moderate Buy" and a consensus target price of $54.69.

Legend Biotech Price Performance

The stock has a market capitalization of $3.95 billion, a PE ratio of -81.56 and a beta of 0.57. The company has a 50 day moving average price of $19.52 and a 200-day moving average price of $22.14.

Legend Biotech (NASDAQ:LEGN - Get Free Report) last released 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 company had revenue of $387.50 million during the quarter, compared to the consensus estimate of $355.96 million. Legend Biotech had a negative net margin of 7.21% and a negative return on equity of 8.71%. Legend Biotech's revenue was up 51.9% on a year-over-year basis. During the same period in the prior year, the firm earned $0.03 earnings per share. As a group, equities analysts anticipate that Legend Biotech Corporation Sponsored ADR will post -0.08 earnings per share for the current year.

Insider Activity

In other news, Director Corazon (Corsee) D. Sanders sold 27,370 shares of Legend Biotech stock in a transaction that occurred on Tuesday, September 29th. The shares were sold at an average price of $9.46, for a total value of $258,920.20. Following the completion of the sale, the director directly owned 52,731 shares in the company, valued at $498,835.26. The trade was a 34.17% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Also, CFO Carlos E. Santos sold 5,430 shares of Legend Biotech 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 sale, the chief financial officer directly owned 14,246 shares of the company's stock, valued at approximately $130,208.44. This trade represents a 27.60% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. 0.02% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Legend Biotech

Several hedge funds and other institutional investors have recently modified their holdings of LEGN. Arrowstreet Capital Limited Partnership increased its holdings in Legend Biotech by 343.6% during the first quarter. Arrowstreet Capital Limited Partnership now owns 406,901 shares of the company's stock valued at $7,361,000 after buying an additional 315,176 shares during the last quarter. Wellington Management Group LLP bought a new stake in Legend Biotech in the second quarter worth $2,369,000. Y Intercept Hong Kong Ltd purchased a new stake in Legend Biotech during the first quarter valued at approximately $4,039,000. Renaissance Technologies LLC lifted its holdings in shares of Legend Biotech by 29.5% in the 1st quarter. Renaissance Technologies LLC now owns 521,800 shares of the company's stock worth $9,439,000 after acquiring an additional 119,000 shares during the last quarter. Finally, Tidal Investments LLC lifted its stake in shares of Legend Biotech by 34.0% during the 2nd quarter. Tidal Investments LLC now owns 240,476 shares of the company's stock worth $6,945,000 after acquiring an additional 61,023 shares during the last quarter. 70.89% of the stock is owned by institutional investors.

Legend Biotech Company Profile

Legend Biotech Corporation NASDAQ: LEGN is a biotechnology company focused on developing, manufacturing and commercializing cell therapies for cancer and other serious diseases. The company's primary technology is chimeric antigen receptor T-cell (CAR-T) therapy, which genetically modifies a patient's immune cells to recognize and attack cancer cells.

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

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