PTC Therapeutics (NASDAQ:PTCT) Shares Gap Down - Here's Why

Key Points

• PTC Therapeutics shares fell 9.1%, opening at $70.92 after previously closing at $75.52, despite a recent quarterly earnings beat. The company reported $0.92 in EPS versus the $0.24 consensus and revenue of $360.52 million, up 101.5% year over year.
• Analyst sentiment remains broadly positive: Wells Fargo, TD Cowen, Cantor Fitzgerald and Morgan Stanley raised or maintained bullish ratings, while the consensus rating is “Moderate Buy” with a $95.75 price target.
• Company insiders sold 198,662 shares worth approximately $16.35 million over the past 90 days, including sales by an insider and a vice president conducted under pre-arranged Rule 10b5-1 trading plans.

PTC Therapeutics, Inc. (NASDAQ:PTCT - Get Free Report) shares gapped down prior to trading on Friday . The stock had previously closed at $75.52, but opened at $70.92. PTC Therapeutics shares last traded at $70.74, with a volume of 489,217 shares trading hands.

Analyst Upgrades and Downgrades

Several equities research analysts have recently issued reports on the stock. Wells Fargo & Company raised their price objective on shares of PTC Therapeutics from $93.00 to $106.00 and gave the stock an "overweight" rating in a research note on Friday. Weiss Ratings cut shares of PTC Therapeutics from a "hold (c-)" rating to a "sell (d)" rating in a research note on Monday, May 11th. TD Cowen raised shares of PTC Therapeutics from a "hold" rating to a "buy" rating and increased their price target for the company from $75.00 to $90.00 in a report on Friday, May 8th. Cantor Fitzgerald raised their price target on shares of PTC Therapeutics from $124.00 to $130.00 and gave the stock an "overweight" rating in a research report on Thursday, July 16th. Finally, Morgan Stanley restated an "overweight" rating and set a $104.00 price objective on shares of PTC Therapeutics in a report on Friday. Two research analysts have rated the stock with a Strong Buy rating, nine have issued a Buy rating, one has assigned a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and a consensus price target of $95.75.

PTC Therapeutics Stock Down 9.1%

The firm has a market capitalization of $5.70 billion, a P/E ratio of -29.36, a PEG ratio of 6.49 and a beta of 0.53. The business has a 50-day moving average price of $77.59 and a 200-day moving average price of $72.77.

PTC Therapeutics (NASDAQ:PTCT - Get Free Report) last issued its earnings results on Thursday, July 30th. The biopharmaceutical company reported $0.92 EPS for the quarter, beating analysts' consensus estimates of $0.24 by $0.68. The business had revenue of $360.52 million during the quarter, compared to analyst estimates of $298.63 million. PTC Therapeutics had a negative return on equity of 362.45% and a negative net margin of 22.58%.PTC Therapeutics's revenue was up 101.5% on a year-over-year basis. During the same period in the prior year, the company posted ($0.83) earnings per share. As a group, sell-side analysts forecast that PTC Therapeutics, Inc. will post 0.41 EPS for the current year.

Insider Buying and Selling at PTC Therapeutics

In other news, insider Neil Gregory Almstead sold 2,464 shares of the firm's stock in a transaction dated Thursday, July 9th. The shares were sold at an average price of $90.25, for a total transaction of $222,376.00. Following the completion of the transaction, the insider directly owned 60,299 shares of the company's stock, valued at approximately $5,441,984.75. This trade represents a 3.93% decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Mark Elliott Boulding sold 5,079 shares of PTC Therapeutics stock in a transaction dated Monday, July 6th. The shares were sold at an average price of $85.08, for a total transaction of $432,121.32. Following the sale, the vice president owned 105,272 shares in the company, valued at approximately $8,956,541.76. This trade represents a 4.60% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 198,662 shares of company stock valued at $16,347,994 in the last 90 days. 5.50% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On PTC Therapeutics

A number of institutional investors have recently added to or reduced their stakes in the stock. UMB Bank n.a. acquired a new position in shares of PTC Therapeutics in the 4th quarter worth approximately $26,000. Comerica Bank boosted its stake in PTC Therapeutics by 868.5% in the 3rd quarter. Comerica Bank now owns 523 shares of the biopharmaceutical company's stock valued at $32,000 after buying an additional 469 shares in the last quarter. Salomon & Ludwin LLC acquired a new stake in PTC Therapeutics in the 4th quarter valued at $41,000. IFP Advisors Inc grew its position in PTC Therapeutics by 68.1% in the third quarter. IFP Advisors Inc now owns 765 shares of the biopharmaceutical company's stock valued at $47,000 after acquiring an additional 310 shares during the period. Finally, Allworth Financial LP grew its position in PTC Therapeutics by 63.8% in the fourth quarter. Allworth Financial LP now owns 634 shares of the biopharmaceutical company's stock valued at $48,000 after acquiring an additional 247 shares during the period.

About PTC Therapeutics

PTC Therapeutics, Inc is a biopharmaceutical company focused on the discovery, development and commercialization of small molecule and biologic therapies for the treatment of rare genetic disorders. Since its founding in 1998, PTC has dedicated its efforts to addressing high unmet medical needs by targeting underlying genetic causes of disease. The company's research platform emphasizes mechanisms such as nonsense suppression and RNA modulation, enabling the development of novel treatments for conditions with limited therapeutic options.

Among PTC's approved products is Translarna (ataluren), a first-in-class therapy designed to treat nonsense mutation Duchenne muscular dystrophy in select markets.

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