Roivant Sciences (NASDAQ:ROIV) Hits New 12-Month High - Here's Why

Key Points

• Roivant Sciences shares hit a new 52-week high of $32.80, reflecting strong recent momentum as the stock continues trading above both its 50-day and 200-day moving averages.
• Wall Street remains largely bullish on the company, with multiple firms raising price targets and the stock holding a Moderate Buy consensus rating from analysts.
• The company recently beat earnings estimates, reporting $0.28 EPS versus expectations for a loss, even though revenue came in below forecasts and insiders also made notable stock sales.

Roivant Sciences Ltd. (NASDAQ:ROIV - Get Free Report)'s stock price hit a new 52-week high on Tuesday . The company traded as high as $32.80 and last traded at $32.07, with a volume of 4263191 shares trading hands. The stock had previously closed at $31.25.

Wall Street Analysts Forecast Growth

Several research firms have issued reports on ROIV. Leerink Partners set a $42.00 price objective on Roivant Sciences in a research note on Thursday, May 21st. HC Wainwright reaffirmed a "buy" rating and issued a $34.00 target price on shares of Roivant Sciences in a report on Thursday, May 21st. Citigroup increased their target price on shares of Roivant Sciences from $35.00 to $42.00 and gave the stock a "buy" rating in a research report on Thursday, May 21st. TD Cowen lifted their price target on shares of Roivant Sciences from $38.00 to $41.00 and gave the company a "buy" rating in a report on Thursday, May 21st. Finally, Jefferies Financial Group restated a "buy" rating on shares of Roivant Sciences in a research report on Tuesday, March 3rd. Ten equities research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, Roivant Sciences has a consensus rating of "Moderate Buy" and an average target price of $33.59.

Roivant Sciences Price Performance

The company has a market cap of $22.91 billion, a price-to-earnings ratio of -53.08 and a beta of 1.13. The business has a 50 day simple moving average of $29.29 and a 200 day simple moving average of $26.46.

Roivant Sciences (NASDAQ:ROIV - Get Free Report) last announced its earnings results on Wednesday, May 20th. The company reported $0.28 earnings per share for the quarter, topping analysts' consensus estimates of ($0.29) by $0.57. Roivant Sciences had a negative net margin of 3,629.19% and a negative return on equity of 20.54%. The company had revenue of $2.52 million during the quarter, compared to the consensus estimate of $3.41 million. During the same period in the previous year, the firm posted ($0.29) earnings per share. As a group, sell-side analysts anticipate that Roivant Sciences Ltd. will post -1.83 earnings per share for the current fiscal year.

Insider Buying and Selling

In other news, CAO Jennifer Humes sold 13,538 shares of Roivant Sciences stock in a transaction on Wednesday, April 8th. The stock was sold at an average price of $28.37, for a total value of $384,073.06. Following the completion of the sale, the chief accounting officer directly owned 84,191 shares of the company's stock, valued at approximately $2,388,498.67. This trade represents a 13.85% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this hyperlink. Also, CEO Eric Venker sold 200,000 shares of the business's stock in a transaction on Friday, May 22nd. The stock was sold at an average price of $30.27, for a total value of $6,054,000.00. Following the sale, the chief executive officer owned 1,613,063 shares of the company's stock, valued at approximately $48,827,417.01. The trade was a 11.03% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold 703,312 shares of company stock worth $20,805,883 in the last quarter. Insiders own 10.80% of the company's stock.

Institutional Trading of Roivant Sciences

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in ROIV. Goldman Sachs Group Inc. grew its position in shares of Roivant Sciences by 15.4% during the 1st quarter. Goldman Sachs Group Inc. now owns 2,433,386 shares of the company's stock worth $24,553,000 after buying an additional 324,764 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its holdings in Roivant Sciences by 1.4% in the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 2,445,807 shares of the company's stock valued at $24,678,000 after buying an additional 34,341 shares during the period. American Century Companies Inc. boosted its stake in Roivant Sciences by 1.9% in the second quarter. American Century Companies Inc. now owns 89,625 shares of the company's stock valued at $1,010,000 after acquiring an additional 1,689 shares during the last quarter. Russell Investments Group Ltd. grew its holdings in Roivant Sciences by 149.9% during the 2nd quarter. Russell Investments Group Ltd. now owns 11,467 shares of the company's stock worth $129,000 after acquiring an additional 6,879 shares during the period. Finally, M&T Bank Corp grew its holdings in Roivant Sciences by 10.2% during the 2nd quarter. M&T Bank Corp now owns 12,802 shares of the company's stock worth $144,000 after acquiring an additional 1,181 shares during the period. 64.76% of the stock is currently owned by institutional investors and hedge funds.

About Roivant Sciences

Roivant Sciences is a biopharmaceutical company focused on the development and commercialization of innovative therapies through a network of subsidiary businesses known as “Vants.” Founded in 2014, Roivant acquires or in-licenses clinical-stage assets that have progressed beyond proof of concept and seeks to advance them efficiently toward regulatory approval. By organizing each program into a dedicated subsidiary, the company aims to streamline decision-making, allocate resources more effectively, and accelerate development timelines.

The core activities of Roivant involve identifying promising drug candidates across a range of therapeutic areas, including neurology, rare diseases, immunology, oncology, and women's health.

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