Nektar Therapeutics (NASDAQ:NKTR) Trading Up 5.4% - Still a Buy?

Key Points

• Nektar Therapeutics shares rose 5.4% to $60.75, despite trading below both its 50-day and 200-day moving averages of roughly $71. The company has a $2.04 billion market capitalization and remains unprofitable.
• Analyst sentiment is broadly positive, with a consensus “Moderate Buy” rating and an average price target of $138.50, although targets vary widely from $50 to $178.
• Nektar exceeded quarterly EPS expectations, reporting a loss of $1.23 per share versus the expected $1.97 loss, but revenue of $10.13 million fell slightly short of estimates. Institutional investors own approximately 75.9% of the stock, while insiders sold 6,285 shares over the past three months.

Nektar Therapeutics (NASDAQ:NKTR - Get Free Report)'s share price was up 5.4% during trading on Thursday . The company traded as high as $58.53 and last traded at $60.75. Approximately 633,702 shares were traded during trading, a decline of 38% from the average daily volume of 1,024,084 shares. The stock had previously closed at $57.66.

Wall Street Analysts Forecast Growth

Several equities research analysts have issued reports on NKTR shares. Wedbush decreased their price target on shares of Nektar Therapeutics from $80.00 to $50.00 and set a "neutral" rating on the stock in a research note on Wednesday. Canaccord Genuity Group initiated coverage on Nektar Therapeutics in a research note on Wednesday, July 22nd. They set a "buy" rating and a $153.00 price target on the stock. TD Cowen upgraded Nektar Therapeutics to a "strong-buy" rating in a report on Monday, August 24th. JPMorgan Chase & Co. assumed coverage on Nektar Therapeutics in a research report on Friday, August 21st. They issued a "neutral" rating and a $65.00 price objective for the company. Finally, BTIG Research reiterated a "buy" rating and set a $178.00 target price on shares of Nektar Therapeutics in a research report on Wednesday, September 16th. One equities research analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, the company has a consensus rating of "Moderate Buy" and a consensus target price of $138.50.

Nektar Therapeutics Price Performance

The stock has a 50-day simple moving average of $71.37 and a 200-day simple moving average of $71.85. The stock has a market cap of $2.04 billion, a PE ratio of -8.90 and a beta of 1.14.

Nektar Therapeutics (NASDAQ:NKTR - Get Free Report) last issued its earnings results on Thursday, August 13th. The biopharmaceutical company reported ($1.23) earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($1.97) by $0.74. Nektar Therapeutics had a negative return on equity of 37.87% and a negative net margin of 287.84%.The business had revenue of $10.13 million during the quarter, compared to analysts' expectations of $10.43 million. As a group, equities research analysts anticipate that Nektar Therapeutics will post -8.28 EPS for the current year.

Insider Buying and Selling at Nektar Therapeutics

In other news, CEO Howard Robin sold 418 shares of the firm's stock in a transaction on Tuesday, August 18th. The shares were sold at an average price of $71.98, for a total value of $30,087.64. Following the transaction, the chief executive officer owned 54,627 shares of the company's stock, valued at approximately $3,932,051.46. This trade represents a 0.76% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Jonathan Zalevsky sold 5,681 shares of Nektar Therapeutics stock in a transaction on Tuesday, June 30th. The shares were sold at an average price of $70.00, for a total transaction of $397,670.00. Following the transaction, the insider owned 9,756 shares in the company, valued at $682,920. The trade was a 36.80% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 6,285 shares of company stock valued at $441,146 in the last three months. Company insiders own 2.50% of the company's stock.

Institutional Investors Weigh In On Nektar Therapeutics

Several institutional investors and hedge funds have recently modified their holdings of the stock. BVF Inc. IL lifted its position in Nektar Therapeutics by 22.2% during the 4th quarter. BVF Inc. IL now owns 1,559,595 shares of the biopharmaceutical company's stock worth $65,940,000 after acquiring an additional 283,000 shares in the last quarter. Braidwell LP grew its holdings in Nektar Therapeutics by 112.7% during the 2nd quarter. Braidwell LP now owns 473,617 shares of the biopharmaceutical company's stock valued at $33,063,000 after purchasing an additional 250,916 shares in the last quarter. Two Seas Capital LP purchased a new stake in Nektar Therapeutics during the 4th quarter worth $31,506,000. Emerald Advisers LLC lifted its holdings in Nektar Therapeutics by 2.7% in the 1st quarter. Emerald Advisers LLC now owns 394,604 shares of the biopharmaceutical company's stock worth $28,392,000 after buying an additional 10,262 shares in the last quarter. Finally, Armistice Capital LLC boosted its position in Nektar Therapeutics by 122.4% in the 4th quarter. Armistice Capital LLC now owns 596,000 shares of the biopharmaceutical company's stock valued at $25,199,000 after buying an additional 328,000 shares during the last quarter. Hedge funds and other institutional investors own 75.88% of the company's stock.

Nektar Therapeutics Company Profile

Nektar Therapeutics is a biopharmaceutical company focused on discovering and developing medicines that harness the body's immune system to treat cancer and autoimmune and inflammatory diseases. The company's research is centered on cytokine biology, immune-cell regulation and its proprietary polymer-conjugation technologies, which are designed to modify therapeutic compounds and potentially improve their duration, delivery or tolerability.

Nektar's pipeline has included investigational therapies such as rezpegaldesleukin, an immune-modulating treatment being studied for autoimmune and inflammatory conditions.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.