Relay Therapeutics (NASDAQ:RLAY) Lowered to "Strong Sell" Rating by Zacks Research

Key Points

• Zacks Research downgraded Relay Therapeutics from “hold” to “strong sell,” even though several other analysts remain bullish with a consensus rating of “Moderate Buy” and an average price target of $24.92.
• The company’s latest earnings fell short of expectations, reporting losses of $0.41 per share versus an expected $0.35 loss and revenue of $3.0 million, below the $5.58 million estimate.
• Shares were down about 0.9% at $19.09, near the stock’s 52-week high, while insiders have recently sold shares and institutional investors still own the vast majority of the company.

Relay Therapeutics (NASDAQ:RLAY - Get Free Report) was downgraded by investment analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a research note issued to investors on Wednesday,Zacks.com reports.

Several other equities research analysts have also recently commented on the company. Citizens Jmp upped their price target on Relay Therapeutics from $19.00 to $21.00 and gave the stock a "market outperform" rating in a research note on Wednesday, May 20th. Raymond James Financial reiterated a "strong-buy" rating on shares of Relay Therapeutics in a research report on Tuesday, May 19th. HC Wainwright boosted their price objective on shares of Relay Therapeutics from $25.00 to $28.00 and gave the company a "buy" rating in a research note on Tuesday, May 26th. Canaccord Genuity Group initiated coverage on shares of Relay Therapeutics in a research report on Thursday, July 16th. They set a "buy" rating and a $29.00 price objective for the company. Finally, Wells Fargo & Company raised their target price on shares of Relay Therapeutics from $17.00 to $21.00 and gave the stock an "overweight" rating in a research note on Tuesday, April 28th. Two research analysts have rated the stock with a Strong Buy rating, ten have given a Buy rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, Relay Therapeutics has a consensus rating of "Moderate Buy" and a consensus price target of $24.92.

Relay Therapeutics Stock Down 0.9%

Shares of RLAY stock opened at $19.09 on Wednesday. The stock's 50-day moving average price is $16.45 and its 200 day moving average price is $12.66. The stock has a market capitalization of $3.66 billion, a PE ratio of -12.16 and a beta of 1.67. Relay Therapeutics has a 52-week low of $3.03 and a 52-week high of $20.79.

Relay Therapeutics (NASDAQ:RLAY - Get Free Report) last posted its quarterly earnings data on Tuesday, May 5th. The company reported ($0.41) earnings per share for the quarter, missing analysts' consensus estimates of ($0.35) by ($0.06). The business had revenue of $3.00 million during the quarter, compared to the consensus estimate of $5.58 million. Analysts expect that Relay Therapeutics will post -1.57 earnings per share for the current fiscal year.

Insiders Place Their Bets

In related news, insider Donald A. Bergstrom sold 8,660 shares of the company's stock in a transaction on Monday, July 6th. The stock was sold at an average price of $18.71, for a total transaction of $162,028.60. Following the transaction, the insider owned 409,897 shares of the company's stock, valued at $7,669,172.87. This represents a 2.07% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available at this link. Also, CFO Thomas Catinazzo sold 17,717 shares of the stock in a transaction on Monday, July 6th. The stock was sold at an average price of $18.69, for a total value of $331,130.73. Following the completion of the transaction, the chief financial officer owned 159,744 shares of the company's stock, valued at $2,985,615.36. The trade was a 9.98% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 426,127 shares of company stock valued at $7,426,087 over the last 90 days. 5.04% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Relay Therapeutics

Institutional investors and hedge funds have recently made changes to their positions in the stock. KBC Group NV acquired a new stake in shares of Relay Therapeutics in the first quarter valued at about $34,000. Torren Management LLC acquired a new position in Relay Therapeutics during the fourth quarter worth about $30,000. Smartleaf Asset Management LLC grew its position in Relay Therapeutics by 288.6% during the fourth quarter. Smartleaf Asset Management LLC now owns 4,426 shares of the company's stock worth $37,000 after buying an additional 3,287 shares during the period. Caitong International Asset Management Co. Ltd acquired a new position in Relay Therapeutics during the fourth quarter worth about $46,000. Finally, Mirae Asset Global Investments Co. Ltd. increased its holdings in Relay Therapeutics by 26.4% in the fourth quarter. Mirae Asset Global Investments Co. Ltd. now owns 8,422 shares of the company's stock valued at $71,000 after buying an additional 1,757 shares in the last quarter. 96.98% of the stock is owned by institutional investors and hedge funds.

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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