Travere Therapeutics (NASDAQ:TVTX) Shares Gap Down - Here's Why

Key Points

• Travere Therapeutics shares fell 2.4%, opening at $60.37 after previously closing at $62.86. The decline came despite a generally positive analyst outlook, with a consensus “Moderate Buy” rating and a $68.10 target price.
• The company reported better-than-expected quarterly results, including a loss of $0.10 per share versus estimates of $0.13 and revenue of $169.58 million, up 48.2% year over year.
• Insiders have been selling shares: executives sold more than 1.05 million shares worth approximately $66.3 million over the past three months, including substantial sales by the CEO and another insider under pre-arranged trading plans.

Travere Therapeutics, Inc. (NASDAQ:TVTX - Get Free Report) shares gapped down prior to trading on Tuesday . The stock had previously closed at $62.86, but opened at $60.37. Travere Therapeutics shares last traded at $61.2310, with a volume of 306,408 shares.

Analysts Set New Price Targets

Several research firms recently commented on TVTX. Wedbush reaffirmed an "outperform" rating and set a $76.00 target price on shares of Travere Therapeutics in a report on Tuesday. Weiss Ratings reissued a "sell (e+)" rating on shares of Travere Therapeutics in a research note on Friday. Piper Sandler restated an "overweight" rating on shares of Travere Therapeutics in a research report on Monday, August 17th. Citigroup raised their price objective on Travere Therapeutics from $70.00 to $85.00 and gave the company a "buy" rating in a research note on Wednesday, August 5th. Finally, Canaccord Genuity Group lifted their price objective on Travere Therapeutics from $62.00 to $70.00 and gave the stock a "buy" rating in a report on Thursday, August 6th. Ten research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat.com, Travere Therapeutics has an average rating of "Moderate Buy" and a consensus target price of $68.10.

Travere Therapeutics Stock Down 2.4%

The company has a quick ratio of 3.99, a current ratio of 4.05 and a debt-to-equity ratio of 24.58. The company's fifty day moving average price is $61.89 and its 200-day moving average price is $48.98. The stock has a market capitalization of $5.78 billion, a PE ratio of -133.29 and a beta of 1.05.

Travere Therapeutics (NASDAQ:TVTX - Get Free Report) last posted its quarterly earnings results on Tuesday, August 4th. The company reported ($0.10) EPS for the quarter, beating analysts' consensus estimates of ($0.13) by $0.03. The firm had revenue of $169.58 million for the quarter, compared to analysts' expectations of $157.27 million. Travere Therapeutics had a negative net margin of 7.35% and a negative return on equity of 55.15%. The business's revenue for the quarter was up 48.2% on a year-over-year basis. During the same quarter in the prior year, the company posted $0.13 earnings per share. Analysts forecast that Travere Therapeutics, Inc. will post -0.54 earnings per share for the current year.

Insider Buying and Selling at Travere Therapeutics

In other news, CEO Eric M. Dube sold 195,841 shares of the stock in a transaction dated Wednesday, September 16th. The shares were sold at an average price of $63.45, for a total transaction of $12,426,111.45. Following the sale, the chief executive officer directly owned 432,886 shares of the company's stock, valued at $27,466,616.70. This represents a 31.15% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is available through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider William E. Rote sold 112,850 shares of Travere Therapeutics stock in a transaction dated Wednesday, September 16th. The shares were sold at an average price of $63.33, for a total value of $7,146,790.50. Following the completion of the transaction, the insider owned 98,197 shares of the company's stock, valued at approximately $6,218,816.01. This represents a 53.47% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last three months, insiders have sold 1,050,294 shares of company stock worth $66,336,443. Insiders own 4.44% of the company's stock.

Institutional Trading of Travere Therapeutics

Several institutional investors have recently bought and sold shares of TVTX. Jupiter Topco LLC acquired a new position in Travere Therapeutics during the 2nd quarter worth approximately $643,299,000. Bank of America Corp DE acquired a new stake in shares of Travere Therapeutics in the second quarter valued at approximately $259,527,000. Perceptive Advisors LLC increased its stake in shares of Travere Therapeutics by 12.7% during the 4th quarter. Perceptive Advisors LLC now owns 4,278,180 shares of the company's stock worth $163,469,000 after purchasing an additional 483,565 shares in the last quarter. Wellington Management Group LLP increased its stake in shares of Travere Therapeutics by 50.0% during the 2nd quarter. Wellington Management Group LLP now owns 1,533,080 shares of the company's stock worth $87,094,000 after purchasing an additional 510,808 shares in the last quarter. Finally, Geode Capital Management LLC raised its position in shares of Travere Therapeutics by 0.3% during the 4th quarter. Geode Capital Management LLC now owns 2,143,495 shares of the company's stock worth $81,915,000 after purchasing an additional 5,465 shares during the last quarter.

Travere Therapeutics Company Profile

Travere Therapeutics, Inc is a biopharmaceutical company focused on developing and commercializing treatments for rare kidney and immune-mediated diseases. The company's work is centered on conditions with significant unmet medical needs, including diseases that can lead to progressive kidney damage and kidney failure.

Travere's principal commercial product is FILSPARI (sparsentan), an oral therapy for adults with primary immunoglobulin A nephropathy, or IgA nephropathy, who are at risk of disease progression.

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