WAVE Life Sciences (NASDAQ:WVE) Shares Gap Up Following Earnings Beat

Key Points

• WAVE Life Sciences shares opened higher after the company reported quarterly earnings of $0.30 per share versus analysts’ expected loss of $0.33, while revenue of $13.16 million exceeded the $4.51 million consensus estimate.
• Wall Street’s outlook is generally positive, with a consensus “Moderate Buy” rating and a $21.53 price target, although analyst views range from “Strong Buy” to “Sell.”
• Institutional investors hold 89.73% of the stock and several major funds increased their positions, while company insiders sold 23,564 shares worth $132,476 over the past three months.

WAVE Life Sciences Ltd. (NASDAQ:WVE - Get Free Report) gapped up before the market opened on Tuesday following a better than expected earnings announcement. The stock had previously closed at $3.21, but opened at $3.55. WAVE Life Sciences shares last traded at $3.3450, with a volume of 331,315 shares changing hands.

The company reported ($0.30) earnings per share for the quarter, topping analysts' consensus estimates of ($0.33) by $0.03. The business had revenue of $13.16 million for the quarter, compared to analyst estimates of $4.51 million. WAVE Life Sciences had a negative return on equity of 50.36% and a negative net margin of 309.73%.

Wall Street Analysts Forecast Growth

Several equities research analysts have issued reports on the stock. LADENBURG THALM/SH SH initiated coverage on shares of WAVE Life Sciences in a research report on Thursday, October 1st. They set a "buy" rating and a $10.00 target price for the company. Mizuho decreased their price objective on shares of WAVE Life Sciences from $27.00 to $23.00 and set an "outperform" rating on the stock in a research report on Tuesday, August 4th. Zacks Research cut shares of WAVE Life Sciences from a "strong-buy" rating to a "hold" rating in a research report on Wednesday, August 19th. Weiss Ratings restated a "sell (d-)" rating on shares of WAVE Life Sciences in a research report on Thursday, October 15th. Finally, Wedbush set a $13.00 price target on WAVE Life Sciences in a research report on Friday, October 2nd. One analyst has rated the stock with a Strong Buy rating, sixteen have issued a Buy rating, two have assigned a Hold rating and one has assigned a Sell rating to the company. Based on data from MarketBeat, WAVE Life Sciences has a consensus rating of "Moderate Buy" and a consensus price target of $21.53.

Insiders Place Their Bets

In other news, Director Heidi L. Wagner sold 7,000 shares of WAVE Life Sciences stock in a transaction dated Tuesday, August 11th. The stock was sold at an average price of $6.01, for a total transaction of $42,070.00. Following the transaction, the director directly owned 44,930 shares of the company's stock, valued at $270,029.30. The trade was a 13.48% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, Director Adrian Rawcliffe sold 12,700 shares of the stock in a transaction that occurred on Wednesday, August 12th. The stock was sold at an average price of $5.29, for a total transaction of $67,183.00. Additional details regarding this sale are available in the official SEC disclosure. In the last three months, insiders have sold 23,564 shares of company stock valued at $132,476. Insiders own 24.34% of the company's stock.

Institutional Inflows and Outflows

Large investors have recently added to or reduced their stakes in the business. Readystate Asset Management LP purchased a new stake in WAVE Life Sciences in the 2nd quarter worth $27,465,000. Squarepoint Ops LLC boosted its position in shares of WAVE Life Sciences by 68.0% during the 2nd quarter. Squarepoint Ops LLC now owns 2,541,442 shares of the company's stock valued at $14,766,000 after acquiring an additional 1,029,052 shares during the last quarter. Pictet Asset Management Holding SA increased its position in WAVE Life Sciences by 42.6% in the first quarter. Pictet Asset Management Holding SA now owns 1,149,127 shares of the company's stock worth $8,202,000 after purchasing an additional 343,226 shares during the last quarter. Renaissance Technologies LLC increased its position in WAVE Life Sciences by 152.6% in the first quarter. Renaissance Technologies LLC now owns 597,220 shares of the company's stock worth $4,330,000 after purchasing an additional 360,800 shares during the last quarter. Finally, Bank of New York Mellon Corp raised its stake in WAVE Life Sciences by 12.4% during the first quarter. Bank of New York Mellon Corp now owns 361,204 shares of the company's stock valued at $2,619,000 after purchasing an additional 39,759 shares in the last quarter. 89.73% of the stock is owned by hedge funds and other institutional investors.

WAVE Life Sciences Price Performance

The firm has a market cap of $655.78 million, a P/E ratio of -3.05 and a beta of -1.43. The company's 50-day simple moving average is $4.20 and its 200 day simple moving average is $7.71.

WAVE Life Sciences Company Profile

WAVE Life Sciences Ltd. NASDAQ: WVE is a biotechnology company focused on developing medicines that act on RNA, a molecule involved in translating genetic information into proteins. The company uses its proprietary chemistry and drug-design technologies to create oligonucleotide therapeutics intended to selectively modify RNA and address the underlying causes of genetic diseases.

Its research programs have included RNA editing and RNA-targeting approaches for conditions such as alpha-1 antitrypsin deficiency, Duchenne muscular dystrophy and other serious genetic disorders.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.