Sarepta Therapeutics (NASDAQ:SRPT) Shares Gap Down - Time to Sell?

Key Points

• Sarepta Therapeutics (NASDAQ:SRPT) shares declined from a previous closing price of $18.23 to an opening price of $17.41 on Monday.
• The company reported earnings of $2.02 per share, significantly exceeding analyst expectations of $0.89, with revenue rising 68.4% year-over-year to $611.09 million.
• Consensus ratings for the stock include five analysts with a "sell" rating, seventeen with "hold," and eight with "buy," alongside an average price target of $44.17.

Sarepta Therapeutics, Inc. (NASDAQ:SRPT - Get Free Report) shares gapped down before the market opened on Monday . The stock had previously closed at $18.23, but opened at $17.41. Sarepta Therapeutics shares last traded at $18.70, with a volume of 3,345,778 shares trading hands.

Analyst Upgrades and Downgrades

SRPT has been the subject of several research reports. HC Wainwright reaffirmed a "sell" rating on shares of Sarepta Therapeutics in a research note on Tuesday, July 29th. Scotiabank raised Sarepta Therapeutics from a "sector perform" rating to a "sector outperform" rating and set a $80.00 price objective on the stock in a report on Friday, June 6th. Guggenheim lowered their target price on Sarepta Therapeutics from $112.00 to $98.00 and set a "buy" rating on the stock in a report on Wednesday, May 7th. Sanford C. Bernstein initiated coverage on Sarepta Therapeutics in a research report on Tuesday, July 29th. They issued a "market perform" rating and a $13.00 price objective for the company. Finally, Citigroup initiated coverage on Sarepta Therapeutics in a research report on Tuesday, July 22nd. They set a "sell" rating for the company. Five investment analysts have rated the stock with a sell rating, seventeen have issued a hold rating and eight have assigned a buy rating to the company. According to data from MarketBeat.com, the company presently has a consensus rating of "Hold" and an average price target of $44.17.

Sarepta Therapeutics Stock Down 2.0%

The company has a quick ratio of 1.81, a current ratio of 2.89 and a debt-to-equity ratio of 0.84. The stock has a market cap of $1.75 billion, a P/E ratio of -20.55 and a beta of 0.46. The business has a 50-day simple moving average of $21.73 and a 200-day simple moving average of $56.48.

Sarepta Therapeutics (NASDAQ:SRPT - Get Free Report) last announced its earnings results on Wednesday, August 6th. The biotechnology company reported $2.02 earnings per share for the quarter, beating analysts' consensus estimates of $0.89 by $1.13. Sarepta Therapeutics had a negative return on equity of 1.03% and a negative net margin of 2.34%. The company had revenue of $611.09 million during the quarter, compared to analyst estimates of $530.66 million. During the same period last year, the company posted $0.07 earnings per share. The firm's quarterly revenue was up 68.4% compared to the same quarter last year. Analysts expect that Sarepta Therapeutics, Inc. will post 2.67 EPS for the current year.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently made changes to their positions in the business. Capital International Investors boosted its stake in Sarepta Therapeutics by 38.9% in the 4th quarter. Capital International Investors now owns 8,697,137 shares of the biotechnology company's stock valued at $1,057,482,000 after purchasing an additional 2,437,855 shares during the period. Farallon Capital Management LLC increased its holdings in Sarepta Therapeutics by 11.1% in the 4th quarter. Farallon Capital Management LLC now owns 2,865,100 shares of the biotechnology company's stock worth $348,368,000 after purchasing an additional 285,100 shares in the last quarter. Wellington Management Group LLP increased its holdings in Sarepta Therapeutics by 27.9% in the 1st quarter. Wellington Management Group LLP now owns 2,646,619 shares of the biotechnology company's stock worth $168,907,000 after purchasing an additional 577,848 shares in the last quarter. T. Rowe Price Investment Management Inc. increased its holdings in Sarepta Therapeutics by 2.1% in the 1st quarter. T. Rowe Price Investment Management Inc. now owns 1,997,991 shares of the biotechnology company's stock worth $127,512,000 after purchasing an additional 41,408 shares in the last quarter. Finally, Geode Capital Management LLC increased its stake in shares of Sarepta Therapeutics by 3.0% in the second quarter. Geode Capital Management LLC now owns 1,875,997 shares of the biotechnology company's stock valued at $32,085,000 after buying an additional 55,076 shares during the period. 86.68% of the stock is currently owned by institutional investors.

About Sarepta Therapeutics

Sarepta Therapeutics, Inc, a commercial-stage biopharmaceutical company, focuses on the discovery and development of RNA-targeted therapeutics, gene therapies, and other genetic therapeutic modalities for the treatment of rare diseases. It offers EXONDYS 51 injection to treat duchenne muscular dystrophy (duchenne) in patients with confirmed mutation of the dystrophin gene that is amenable to exon 51 skipping; VYONDYS 53 for the treatment of duchenne in patients with confirmed mutation of the dystrophin gene that is amenable to exon 53 skipping; AMONDYS 45 for the treatment of duchenne in patients with confirmed mutation of the dystrophin gene; and ELEVIDYS, an adeno-associated virus based gene therapy for the treatment of ambulatory pediatric patients aged 4 through 5 years with duchenne with a confirmed mutation in the duchenne gene.

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