Relay Therapeutics (NASDAQ:RLAY) Trading Down 4.8% - Should You Sell?

Key Points

• Relay Therapeutics shares fell 4.8% to about $19.58 in midday trading, on volume roughly 92% below the daily average.
• Analyst sentiment remains positive, with a consensus rating of “Moderate Buy” and an average price target of $25.92, implying upside from the trading price.
• The company missed quarterly expectations, reporting an adjusted loss of $0.41 per share versus the $0.39 consensus estimate and revenue of $0.35 million versus $0.96 million expected.

Relay Therapeutics, Inc. (NASDAQ:RLAY - Get Free Report) shares traded down 4.8% on Wednesday . The company traded as low as $19.45 and last traded at $19.5830. Approximately 266,028 shares traded hands during mid-day trading, a decline of 92% from the average daily volume of 3,158,819 shares. The stock had previously closed at $20.57.

Analyst Upgrades and Downgrades

Several research firms have recently issued reports on RLAY. Citizens Jmp lifted their price objective on shares of Relay Therapeutics from $21.00 to $26.00 and gave the stock a "market outperform" rating in a research report on Monday, August 10th. Guggenheim reissued a "buy" rating on shares of Relay Therapeutics in a report on Friday, August 7th. Zacks Research upgraded Relay Therapeutics from a "strong sell" rating to a "hold" rating in a research note on Thursday, August 20th. HC Wainwright lifted their price target on Relay Therapeutics from $28.00 to $29.00 and gave the stock a "buy" rating in a report on Thursday, August 20th. Finally, UBS Group set a $26.00 price objective on Relay Therapeutics in a research report on Tuesday, May 19th. Two analysts have rated the stock with a Strong Buy rating, ten have issued a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat, the stock presently has an average rating of "Moderate Buy" and a consensus target price of $25.92.

Relay Therapeutics Stock Down 5.5%

The business's fifty day simple moving average is $19.07 and its two-hundred day simple moving average is $14.56. The company has a market cap of $4.26 billion, a price-to-earnings ratio of -12.42 and a beta of 1.69.

Relay Therapeutics (NASDAQ:RLAY - Get Free Report) last issued its earnings results on Thursday, August 6th. The company reported ($0.41) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.39) by ($0.02). The firm had revenue of $0.35 million for the quarter, compared to analyst estimates of $0.96 million. Sell-side analysts predict that Relay Therapeutics, Inc. will post -1.61 EPS for the current fiscal year.

Insider Activity at Relay Therapeutics

In other Relay Therapeutics news, insider Donald A. Bergstrom sold 2,237 shares of the company's stock in a transaction on Tuesday, July 28th. The shares were sold at an average price of $18.61, for a total value of $41,630.57. Following the completion of the transaction, the insider owned 407,660 shares in the company, valued at $7,586,552.60. This represents a 0.55% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Thomas Catinazzo sold 1,459 shares of the company's stock in a transaction on Tuesday, July 28th. The shares were sold at an average price of $18.61, for a total transaction of $27,151.99. Following the completion of the transaction, the chief financial officer owned 158,285 shares of the company's stock, valued at $2,945,683.85. This represents a 0.91% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 409,639 shares of company stock valued at $7,233,399 in the last ninety days. 5.04% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Hedge funds have recently added to or reduced their stakes in the company. Torren Management LLC purchased a new stake in Relay Therapeutics in the fourth quarter valued at approximately $30,000. KBC Group NV purchased a new position in shares of Relay Therapeutics during the first quarter worth approximately $34,000. Allworth Financial LP purchased a new position in shares of Relay Therapeutics during the second quarter worth approximately $34,000. Smartleaf Asset Management LLC increased its holdings in shares of Relay Therapeutics by 288.6% in the 4th quarter. Smartleaf Asset Management LLC now owns 4,426 shares of the company's stock valued at $37,000 after acquiring an additional 3,287 shares during the period. Finally, Caitong International Asset Management Co. Ltd acquired a new position in shares of Relay Therapeutics in the 4th quarter valued at $46,000. Hedge funds and other institutional investors own 96.98% of the company's stock.

Relay Therapeutics Company Profile

Relay Therapeutics, Inc is a clinical-stage biotechnology company focused on the discovery and development of precision therapies for oncology. Headquartered in Cambridge, Massachusetts, the company was founded in 2016 with the goal of targeting dynamic protein motion using an integrated scientific platform. Relay Therapeutics leverages computational modeling, structural biology, and experimental validation to identify small-molecule drug candidates that modulate the behavior of disease-associated proteins.

The company's core business activity centers on its proprietary drug-discovery engine, which combines high-performance computing—including molecular dynamics simulations—with advanced experimental techniques such as cryo-electron microscopy and biophysical screening.

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