Relay Therapeutics (NASDAQ:RLAY) Downgraded by Wall Street Zen to Sell

Key Points

• Wall Street Zen downgraded Relay Therapeutics from “hold” to “sell,” even as most other analysts remain constructive on the stock. The consensus rating is still “Moderate Buy,” with an average price target of $20.56.
• Relay Therapeutics reported a weaker-than-expected quarterly update, posting a loss of $0.41 per share versus expectations for a $0.35 loss and revenue of $3.0 million versus $5.58 million expected.
• The stock was trading at $12.76, well below its 52-week high of $17.32 but above its low of $2.67. Institutional investors own nearly 97% of the company, while insiders have recently sold shares, including CFO Thomas Catinazzo.

Relay Therapeutics (NASDAQ:RLAY - Get Free Report) was downgraded by equities researchers at Wall Street Zen from a "hold" rating to a "sell" rating in a report issued on Saturday.

Several other research analysts have also weighed in on RLAY. The Goldman Sachs Group increased their price objective on shares of Relay Therapeutics from $13.00 to $22.00 and gave the stock a "buy" rating in a report on Tuesday, April 28th. JonesTrading started coverage on shares of Relay Therapeutics in a report on Tuesday, April 14th. They set a "hold" rating and a $18.00 price objective on the stock. Guggenheim increased their price objective on shares of Relay Therapeutics from $15.00 to $22.00 and gave the stock a "buy" rating in a report on Friday, March 13th. Citizens Jmp increased their price objective on shares of Relay Therapeutics from $17.00 to $19.00 and gave the stock a "market outperform" rating in a report on Tuesday, April 28th. Finally, Wells Fargo & Company increased their price objective on shares of Relay Therapeutics from $17.00 to $21.00 and gave the stock an "overweight" rating in a report on Tuesday, April 28th. One equities research analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating, one has assigned a Hold rating and one has assigned a Sell rating to the stock. According to MarketBeat, Relay Therapeutics has an average rating of "Moderate Buy" and an average target price of $20.56.

Relay Therapeutics Price Performance

Relay Therapeutics stock opened at $12.76 on Friday. Relay Therapeutics has a 12-month low of $2.67 and a 12-month high of $17.32. The stock has a market capitalization of $2.44 billion, a P/E ratio of -8.13 and a beta of 1.74. The firm's 50-day moving average is $12.10 and its two-hundred day moving average is $9.31.

Relay Therapeutics (NASDAQ:RLAY - Get Free Report) last released its quarterly earnings results on Tuesday, May 5th. The company reported ($0.41) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.35) by ($0.06). The business had revenue of $3.00 million for the quarter, compared to the consensus estimate of $5.58 million. As a group, analysts forecast that Relay Therapeutics will post -1.59 EPS for the current year.

Insider Buying and Selling

In related news, CFO Thomas Catinazzo sold 17,717 shares of the firm's stock in a transaction that occurred on Tuesday, April 7th. The shares were sold at an average price of $13.01, for a total value of $230,498.17. Following the transaction, the chief financial officer owned 213,867 shares in the company, valued at approximately $2,782,409.67. This trade represents a 7.65% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold a total of 22,732 shares of company stock valued at $305,048 in the last 90 days. Company insiders own 4.87% of the company's stock.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of the business. SG Americas Securities LLC raised its stake in shares of Relay Therapeutics by 591.7% during the fourth quarter. SG Americas Securities LLC now owns 220,949 shares of the company's stock valued at $1,869,000 after purchasing an additional 189,004 shares during the period. Tudor Investment Corp ET AL purchased a new stake in shares of Relay Therapeutics during the third quarter valued at approximately $399,000. Commodore Capital LP raised its stake in shares of Relay Therapeutics by 27.3% during the third quarter. Commodore Capital LP now owns 17,000,000 shares of the company's stock valued at $88,740,000 after purchasing an additional 3,650,000 shares during the period. Sanctuary Advisors LLC purchased a new stake in shares of Relay Therapeutics during the fourth quarter valued at approximately $1,203,000. Finally, Mayport LLC purchased a new stake in shares of Relay Therapeutics during the third quarter valued at approximately $259,000. Hedge funds and other institutional investors own 96.98% of the company's stock.

Relay Therapeutics Company Profile

Relay Therapeutics, Inc is a clinical-stage biotechnology company focused on the discovery and development of precision therapies for oncology. Headquartered in Cambridge, Massachusetts, the company was founded in 2016 with the goal of targeting dynamic protein motion using an integrated scientific platform. Relay Therapeutics leverages computational modeling, structural biology, and experimental validation to identify small-molecule drug candidates that modulate the behavior of disease-associated proteins.

The company's core business activity centers on its proprietary drug-discovery engine, which combines high-performance computing—including molecular dynamics simulations—with advanced experimental techniques such as cryo-electron microscopy and biophysical screening.

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