PepGen (NASDAQ:PEPG) Shares Cross Above 200-Day Moving Average on Disappointing Earnings

Key Points

• PepGen shares surged above their 200-day moving average, reaching $6.45 intraday before last trading at $4.61 on unusually heavy volume, amid positive Phase 2 FREEDOM2-DM1 results.
• The company reported a quarterly loss of $0.28 per share, slightly worse than analysts’ $0.27 loss estimate.
• PepGen proposed a $125 million public stock offering to fund development, which could dilute existing shareholders; Bank of America upgraded the stock to neutral with a $6 price target.

PepGen, Inc. (NASDAQ:PEPG - Get Free Report)'s share price passed above its 200-day moving average during trading on Tuesday following a stronger than expected earnings report. The stock has a 200-day moving average of $2.98 and traded as high as $6.45. PepGen shares last traded at $4.61, with a volume of 105,680,478 shares changing hands.

The company reported ($0.28) EPS for the quarter, missing the consensus estimate of ($0.27) by ($0.01).

Key Stories Impacting PepGen

Here are the key news stories impacting PepGen this week:

• Positive Sentiment: PepGen reported positive Phase 2 FREEDOM2-DM1 results at the 10 mg/kg dose, including the highest reported splicing correction and improvements across multiple functional measures. The data drove the sharp rally and raised expectations for the treatment’s potential. Article: PepGen Announces Positive Phase 2 FREEDOM2-DM1 Results
• Positive Sentiment: Bank of America upgraded PEPG from “underperform” to “neutral” and set a $6 price target, adding support to sentiment after the trial news. Article: Bank of America Ratings
• Neutral Sentiment: The company proposed a $125 million public offering of common stock. The financing could provide funds for development, but issuing shares may dilute existing shareholders. Article: Proposed $125 Million Offering
• Negative Sentiment: PepGen reported a third-quarter loss of $0.28 per share, slightly wider than analysts’ $0.27 estimate. This was a modest miss, though the trial results appear to have been the stronger near-term market catalyst. Article: PepGen Third-Quarter 2026 Results

Wall Street Analysts Forecast Growth

A number of analysts have recently commented on the stock. Bank of America upgraded shares of PepGen from an "underperform" rating to a "neutral" rating and set a $6.00 price target for the company in a research note on Tuesday. HC Wainwright restated a "buy" rating on shares of PepGen in a research report on Wednesday, September 9th. Wall Street Zen upgraded shares of PepGen from a "sell" rating to a "hold" rating in a report on Saturday. Finally, Weiss Ratings upgraded shares of PepGen from a "sell (e+)" rating to a "sell (d-)" rating in a report on Tuesday, September 22nd. Five research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company's stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $10.50.

Institutional Inflows and Outflows

Large investors have recently modified their holdings of the company. Commodore Capital LP lifted its position in PepGen by 31.6% in the first quarter. Commodore Capital LP now owns 4,475,000 shares of the company's stock worth $7,921,000 after buying an additional 1,075,000 shares during the last quarter. ADAR1 Capital Management LLC purchased a new stake in shares of PepGen in the second quarter valued at $4,664,000. BlackRock Inc. purchased a new stake in shares of PepGen in the second quarter valued at $2,348,000. Kalehua Capital Management LLC purchased a new stake in shares of PepGen in the first quarter valued at $1,770,000. Finally, GSA Capital Partners LLP purchased a new stake in shares of PepGen in the second quarter valued at $1,535,000. Hedge funds and other institutional investors own 58.01% of the company's stock.

PepGen Stock Performance

The company's fifty day moving average price is $2.69 and its 200-day moving average price is $2.98. The stock has a market cap of $319.29 million, a P/E ratio of -3.52 and a beta of 2.02.

PepGen Company Profile

PepGen Inc. is a clinical-stage biotechnology company developing genetic medicines for serious neuromuscular diseases. The company's technology is designed to improve the delivery of oligonucleotide therapeutics into skeletal and cardiac muscle, with the goal of addressing diseases caused by genetic mutations or abnormal RNA processing. PepGen's platform, known as Enhanced Delivery Oligonucleotides (EDO), combines therapeutic oligonucleotides with proprietary peptides intended to facilitate their distribution into muscle tissue.

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