Sarepta Therapeutics (NASDAQ:SRPT) Shares Gap Down - Should You Sell?

Key Points

• Sarepta Therapeutics shares gapped down from a prior close of $22.50 to open at $19.86, later trading near $20.50 on volume of approximately 770,000 shares.
• Analyst sentiment is mixed: the stock has an average “Hold” rating from 20 analysts, with a consensus price target of $25.06 versus the current price.
• Sarepta beat quarterly earnings and revenue expectations, reporting $0.64 in EPS and $401.25 million in revenue, but revenue fell 34.3% year over year and the company remained unprofitable on a net-margin basis.

Sarepta Therapeutics, Inc. (NASDAQ:SRPT - Get Free Report) gapped down prior to trading on Tuesday . The stock had previously closed at $22.50, but opened at $19.86. Sarepta Therapeutics shares last traded at $20.50, with a volume of 770,363 shares traded.

Wall Street Analyst Weigh In

A number of equities research analysts have recently commented on the stock. Zacks Research raised shares of Sarepta Therapeutics from a "strong sell" rating to a "hold" rating in a research note on Wednesday, August 12th. Weiss Ratings downgraded shares of Sarepta Therapeutics from a "sell (d)" rating to a "sell (e+)" rating in a research note on Wednesday, August 19th. Wall Street Zen lowered shares of Sarepta Therapeutics from a "buy" rating to a "hold" rating in a report on Saturday, August 8th. Wolfe Research raised shares of Sarepta Therapeutics from a "peer perform" rating to an "outperform" rating and set a $27.00 price target on the stock in a research report on Thursday, July 9th. Finally, Piper Sandler cut their price target on shares of Sarepta Therapeutics from $23.00 to $20.00 and set a "neutral" rating on the stock in a research report on Thursday, July 9th. Nine analysts have rated the stock with a Buy rating, six have issued a Hold rating and five have issued a Sell rating to the company's stock. According to data from MarketBeat.com, Sarepta Therapeutics presently has an average rating of "Hold" and a consensus target price of $25.06.

Sarepta Therapeutics Stock Performance

The company has a quick ratio of 2.62, a current ratio of 4.42 and a debt-to-equity ratio of 0.55. The company has a 50 day simple moving average of $18.37 and a 200-day simple moving average of $18.50. The stock has a market capitalization of $2.15 billion, a price-to-earnings ratio of -6.96, a price-to-earnings-growth ratio of 0.32 and a beta of 0.27.

Sarepta Therapeutics (NASDAQ:SRPT - Get Free Report) last posted its quarterly earnings results on Wednesday, August 5th. The biotechnology company reported $0.64 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of $0.22 by $0.42. The firm had revenue of $401.25 million for the quarter, compared to analysts' expectations of $366.39 million. Sarepta Therapeutics had a negative return on equity of 1.60% and a negative net margin of 13.48%.The company's revenue for the quarter was down 34.3% compared to the same quarter last year. During the same period in the prior year, the business earned $2.02 EPS. As a group, equities research analysts expect that Sarepta Therapeutics, Inc. will post 3.52 EPS for the current fiscal year.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of the stock. BlackRock Inc. acquired a new position in shares of Sarepta Therapeutics during the second quarter valued at about $341,339,000. AQR Capital Management LLC grew its stake in shares of Sarepta Therapeutics by 454.6% in the 4th quarter. AQR Capital Management LLC now owns 7,796,535 shares of the biotechnology company's stock valued at $167,781,000 after buying an additional 6,390,860 shares during the period. First Trust Advisors LP grew its stake in shares of Sarepta Therapeutics by 107.6% in the 1st quarter. First Trust Advisors LP now owns 4,135,788 shares of the biotechnology company's stock valued at $89,995,000 after buying an additional 2,143,211 shares during the period. Erste Asset Management GmbH increased its position in Sarepta Therapeutics by 1.6% in the 4th quarter. Erste Asset Management GmbH now owns 2,728,945 shares of the biotechnology company's stock valued at $58,727,000 after buying an additional 43,000 shares in the last quarter. Finally, Bank of America Corp DE increased its position in Sarepta Therapeutics by 26.6% in the 1st quarter. Bank of America Corp DE now owns 2,145,926 shares of the biotechnology company's stock valued at $46,695,000 after buying an additional 450,336 shares in the last quarter. 86.68% of the stock is owned by institutional investors.

About Sarepta Therapeutics

Sarepta Therapeutics, Inc is a biopharmaceutical company focused on the discovery and development of precision genetic medicines for rare neuromuscular diseases. Headquartered in Cambridge, Massachusetts, Sarepta's core expertise lies in designing RNA-targeted therapies and gene therapies that address underlying genetic mutations. The company's mission is to transform the treatment paradigm for patients with Duchenne muscular dystrophy (DMD) and related disorders through innovative modalities.

Sarepta's commercial products include several exon-skipping therapies approved by the U.S.

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