Ultragenyx Pharmaceutical (NASDAQ:RARE) Hits New 12-Month Low After Analyst Downgrade

Key Points

• Ultragenyx shares plunged to a new 52-week low of $13.95 after Wedbush cut its price target from $30 to $23 and maintained a neutral rating.
• The Phase 3 Aspire trial for the company’s Angelman syndrome treatment failed to meet its primary and key secondary endpoints, eliminating a major expected growth driver and prompting several analysts to downgrade the stock or reduce price targets.
• Despite the setback, Ultragenyx reported encouraging 96-week GENGLYCOS data and stronger-than-expected quarterly revenue of $214 million, while the broader analyst consensus remains “Moderate Buy” with an average target of $43.95.

Shares of Ultragenyx Pharmaceutical Inc. (NASDAQ:RARE - Get Free Report) reached a new 52-week low during trading on Thursday after Wedbush lowered their price target on the stock from $30.00 to $23.00. Wedbush currently has a neutral rating on the stock. Ultragenyx Pharmaceutical traded as low as $13.95 and last traded at $13.9130, with a volume of 1729068 shares. The stock had previously closed at $26.53.

Other analysts also recently issued research reports about the stock. Wall Street Zen raised shares of Ultragenyx Pharmaceutical from a "sell" rating to a "hold" rating in a research report on Saturday, August 8th. Evercore lowered shares of Ultragenyx Pharmaceutical from an "outperform" rating to an "inline" rating and set a $16.00 target price on the stock. in a research note on Thursday. HC Wainwright decreased their price target on shares of Ultragenyx Pharmaceutical from $50.00 to $25.00 and set a "buy" rating for the company in a research note on Thursday. Citigroup increased their price target on Ultragenyx Pharmaceutical from $45.00 to $58.00 and gave the stock a "buy" rating in a report on Thursday, August 20th. Finally, William Blair lowered Ultragenyx Pharmaceutical from an "outperform" rating to a "market perform" rating in a research report on Thursday. One research analyst has rated the stock with a Strong Buy rating, twelve have given a Buy rating, seven have issued a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the company currently has an average rating of "Moderate Buy" and an average target price of $43.95.

Insiders Place Their Bets

In other news, EVP Karah Herdman Parschauer sold 1,899 shares of Ultragenyx Pharmaceutical stock in a transaction on Monday, June 15th. The stock was sold at an average price of $24.62, for a total value of $46,753.38. Following the completion of the transaction, the executive vice president directly owned 94,462 shares in the company, valued at approximately $2,325,654.44. The trade was a 1.97% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, Director Corazon (Corsee) D. Sanders sold 2,000 shares of the business's stock in a transaction on Monday, June 15th. The shares were sold at an average price of $25.05, for a total value of $50,100.00. Following the sale, the director owned 21,095 shares in the company, valued at approximately $528,429.75. The trade was a 8.66% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders own 5.20% of the company's stock.

More Ultragenyx Pharmaceutical News

Here are the key news stories impacting Ultragenyx Pharmaceutical this week:

• Positive Sentiment: Ultragenyx reported encouraging 96-week data for GENGLYCOS™ (DTX401) in glycogen storage disease type Ia. Patients achieved an average 61% reduction in daily cornstarch intake while maintaining glycemic control, supporting the commercial and clinical potential of this program. GENGLYCOS trial publication
• Neutral Sentiment: Ultragenyx’s existing commercial business remains a focus for investors as the company evaluates cost reductions and seeks to offset the impact of the failed Angelman program. Analysts continue to recognize longer-term potential in its rare-disease portfolio, although near-term sentiment has deteriorated. Barron's analysis of Ultragenyx
• Negative Sentiment: The Phase 3 Aspire study of the company’s Angelman syndrome treatment did not achieve its primary endpoint, the change in Bayley-4 cognitive raw score, or its key secondary MDRI endpoint. The failure removes a major anticipated growth driver and raises questions about the value of the program. Ultragenyx Aspire Phase 3 results
• Negative Sentiment: Wells Fargo downgraded Ultragenyx from “overweight” to “equal weight” and set an $18 price target, implying substantial downside from the referenced price. Analyst coverage
• Negative Sentiment: JPMorgan downgraded the stock to “neutral,” while Robert W. Baird and Evercore moved their ratings to “neutral” or “in-line.” Baird cut its target to $16 from $40, and Evercore also set a $16 target, reinforcing the view that the trial failure materially reduced Ultragenyx’s valuation.

Institutional Investors Weigh In On Ultragenyx Pharmaceutical

Institutional investors and hedge funds have recently modified their holdings of the company. CANADA LIFE ASSURANCE Co grew its stake in Ultragenyx Pharmaceutical by 2.0% during the third quarter. CANADA LIFE ASSURANCE Co now owns 26,932 shares of the biopharmaceutical company's stock valued at $817,000 after acquiring an additional 534 shares in the last quarter. Van ECK Associates Corp boosted its holdings in Ultragenyx Pharmaceutical by 26.1% in the 3rd quarter. Van ECK Associates Corp now owns 2,650 shares of the biopharmaceutical company's stock valued at $80,000 after purchasing an additional 549 shares during the period. Tidal Investments LLC grew its position in shares of Ultragenyx Pharmaceutical by 4.7% during the 2nd quarter. Tidal Investments LLC now owns 12,591 shares of the biopharmaceutical company's stock valued at $458,000 after purchasing an additional 564 shares in the last quarter. Rafferty Asset Management LLC increased its holdings in shares of Ultragenyx Pharmaceutical by 0.4% in the fourth quarter. Rafferty Asset Management LLC now owns 157,061 shares of the biopharmaceutical company's stock worth $3,612,000 after purchasing an additional 577 shares during the period. Finally, Smartleaf Asset Management LLC raised its position in shares of Ultragenyx Pharmaceutical by 43.2% in the fourth quarter. Smartleaf Asset Management LLC now owns 2,489 shares of the biopharmaceutical company's stock worth $57,000 after buying an additional 751 shares in the last quarter. 97.67% of the stock is owned by hedge funds and other institutional investors.

Ultragenyx Pharmaceutical Price Performance

The company has a 50 day moving average of $28.36 and a 200-day moving average of $25.08. The company has a market cap of $1.40 billion, a P/E ratio of -2.40 and a beta of 0.31.

Ultragenyx Pharmaceutical (NASDAQ:RARE - Get Free Report) last posted its quarterly earnings data on Tuesday, August 4th. The biopharmaceutical company reported ($0.90) earnings per share for the quarter, topping the consensus estimate of ($1.22) by $0.32. Ultragenyx Pharmaceutical had a negative net margin of 81.79% and a negative return on equity of 1,024.42%. The company had revenue of $214.00 million for the quarter, compared to analysts' expectations of $183.08 million. During the same period in the prior year, the business earned ($1.17) earnings per share. Ultragenyx Pharmaceutical's revenue for the quarter was up 28.5% compared to the same quarter last year. Research analysts anticipate that Ultragenyx Pharmaceutical Inc. will post -3.97 EPS for the current year.

About Ultragenyx Pharmaceutical

Ultragenyx Pharmaceutical Inc is a biopharmaceutical company focused on developing and commercializing therapies for rare and ultra-rare genetic disorders. Since its founding in 2010 and headquarters in Novato, California, the company has built expertise in protein replacement therapies, small molecules and gene therapy approaches to address high-unmet medical needs. Ultragenyx applies a precision medicine model, leveraging both in-house research and strategic collaborations to advance its product pipeline from discovery through regulatory approval.

The company's commercial portfolio includes Crysvita (burosumab-tmyl) for X-linked hypophosphatemia, Mepsevii (vestronidase alfa-vjbk) for mucopolysaccharidosis VII and Dojolvi (triheptanoin) for long-chain fatty acid oxidation disorders.

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