Rapport Therapeutics (NASDAQ:RAPP) Shares Gap Up on Analyst Upgrade

Key Points

• Rapport Therapeutics shares opened higher after BTIG Research raised its price target from $75 to $89 and reiterated a Buy rating. The stock opened at $30.33 versus a prior close of $28.60.
• RAP-219 met both Phase 2 endpoints in bipolar mania, strengthening the drug’s commercial prospects; Jefferies estimates the indication could generate up to $1 billion in peak sales. Analysts broadly remain bullish, with a consensus Buy rating and $65 price target.
• Despite the positive clinical update, Rapport remains loss-making and recently faced valuation concerns following a monthly decline. Company insiders have sold nearly 98,000 shares worth about $4.4 million over the past 90 days.

Rapport Therapeutics, Inc. (NASDAQ:RAPP - Get Free Report) shares gapped up prior to trading on Tuesday after BTIG Research raised their price target on the stock from $75.00 to $89.00. The stock had previously closed at $28.60, but opened at $30.33. BTIG Research currently has a buy rating on the stock. Rapport Therapeutics shares last traded at $29.0240, with a volume of 3,305,961 shares trading hands.

Several other brokerages have also weighed in on RAPP. William Blair assumed coverage on shares of Rapport Therapeutics in a report on Tuesday, July 28th. They set an "outperform" rating for the company. Leerink Partners began coverage on shares of Rapport Therapeutics in a research note on Wednesday, June 24th. They issued an "outperform" rating and a $52.00 target price on the stock. Raymond James Financial restated a "strong-buy" rating on shares of Rapport Therapeutics in a research note on Tuesday, September 22nd. Wolfe Research assumed coverage on shares of Rapport Therapeutics in a research report on Thursday, October 15th. They set an "outperform" rating and a $50.00 price target on the stock. Finally, HC Wainwright lifted their price target on Rapport Therapeutics from $40.00 to $66.00 and gave the stock a "buy" rating in a research note on Wednesday, August 12th. Two analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating and one has given a Sell rating to the stock. According to MarketBeat.com, the stock currently has an average rating of "Buy" and a consensus price target of $65.00.

Insider Buying and Selling at Rapport Therapeutics

In other Rapport Therapeutics news, COO Cheryl Gault sold 10,000 shares of the business's stock in a transaction on Wednesday, September 30th. The shares were sold at an average price of $33.19, for a total transaction of $331,900.00. Following the completion of the sale, the chief operating officer owned 139,914 shares in the company, valued at $4,643,745.66. The trade was a 6.67% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CEO Abraham Ceesay sold 28,958 shares of the stock in a transaction on Tuesday, August 11th. The stock was sold at an average price of $48.01, for a total transaction of $1,390,273.58. Following the sale, the chief executive officer directly owned 486,108 shares in the company, valued at $23,338,045.08. This trade represents a 5.62% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 97,976 shares of company stock worth $4,420,349 over the last 90 days. 12.48% of the stock is currently owned by company insiders.

Trending Headlines about Rapport Therapeutics

Here are the key news stories impacting Rapport Therapeutics this week:

• Positive Sentiment: RAP-219 met both Phase 2 trial endpoints. The treatment produced statistically significant, placebo-adjusted improvements at Week 3 in the Young Mania Rating Scale total score and the Clinical Global Impression–Bipolar Severity of Mania score. Rapport Therapeutics Announces Positive Topline Results from its Phase 2 Trial
• Positive Sentiment: The trial success strengthens RAP-219’s commercial prospects. Jefferies estimated the bipolar-mania indication could represent a potential $1 billion peak-sales opportunity, helping explain the stock’s strong move and elevated trading activity. Inside the $1 Billion Blockbuster Opportunity
• Positive Sentiment: BTIG Research raised its price target to $89 from $75 and reiterated a Buy rating. The substantially higher target signals increased analyst confidence in Rapport’s pipeline following the clinical readout.
• Positive Sentiment: Wells Fargo also maintained its Buy rating, adding to the favorable analyst backdrop. Wells Fargo Sticks to Its Buy Rating
• Neutral Sentiment: Premarket volume was approximately 1.44 million shares, versus an average of about 351,000, indicating unusually strong attention and liquidity around the trial announcement. Why Is Rapport Therapeutics Stock Trading Higher Today?
• Negative Sentiment: Investors had recently questioned the stock’s valuation after a 29% monthly decline. Rapport remains loss-making, and the positive topline data will need to be confirmed through additional development and regulatory progress. Rapport Therapeutics Stock Seems Pricey

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently modified their holdings of the business. Engineers Gate Manager LP acquired a new stake in shares of Rapport Therapeutics during the 2nd quarter worth approximately $888,000. Wellington Management Group LLP boosted its position in Rapport Therapeutics by 11.2% during the 2nd quarter. Wellington Management Group LLP now owns 86,988 shares of the company's stock valued at $3,625,000 after purchasing an additional 8,757 shares during the period. Artia Global Partners LP acquired a new position in Rapport Therapeutics during the 2nd quarter valued at approximately $5,772,000. Bank of America Corp DE acquired a new position in Rapport Therapeutics during the 2nd quarter valued at approximately $3,170,000. Finally, Jupiter Topco LLC bought a new position in Rapport Therapeutics during the 2nd quarter worth $574,000.

Rapport Therapeutics Stock Performance

The stock has a market capitalization of $1.44 billion, a P/E ratio of -10.15 and a beta of 1.22. The stock has a 50 day moving average of $40.70 and a 200 day moving average of $39.14.

Rapport Therapeutics (NASDAQ:RAPP - Get Free Report) last issued its earnings results on Wednesday, August 5th. The company reported ($1.19) earnings per share for the quarter, missing the consensus estimate of ($1.12) by ($0.07). On average, research analysts anticipate that Rapport Therapeutics, Inc. will post -4.09 EPS for the current fiscal year.

Rapport Therapeutics Company Profile

Rapport Therapeutics, Inc is a clinical-stage biopharmaceutical company focused on developing medicines for neurological and psychiatric disorders. The company uses its proprietary RAP platform to identify and target synaptic receptor-associated proteins, which can influence the activity, distribution and function of receptors involved in the central nervous system.

Rapport's lead clinical program is relutrigine, also known as RAP-219, an orally administered small-molecule therapy being developed for focal epilepsy.

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