Sarepta Therapeutics (NASDAQ:SRPT) Shares Gap Up on Strong Earnings

Key Points

• Sarepta Therapeutics announced a strong earnings report with an EPS of $2.02, significantly exceeding the expected $0.89, and revenue of $611.09 million, surpassing the forecast of $530.66 million.
• Following the earnings announcement, Sarepta's shares gapped up from $16.26 to $18.25 and last traded at $18.29, with a trading volume of over 5 million shares.
• Despite the positive earnings, Sarepta has a negative net margin of 11.12% and a majority of analysts maintain a consensus rating of "Hold" with an average target price of $49.12.

Shares of Sarepta Therapeutics, Inc. (NASDAQ:SRPT - Get Free Report) gapped up prior to trading on Thursday following a better than expected earnings announcement. The stock had previously closed at $16.26, but opened at $18.25. Sarepta Therapeutics shares last traded at $18.29, with a volume of 5,424,338 shares changing hands.

The biotechnology company reported $2.02 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.89 by $1.13. The firm had revenue of $611.09 million during the quarter, compared to analysts' expectations of $530.66 million. Sarepta Therapeutics had a negative net margin of 11.12% and a negative return on equity of 14.88%. The firm's revenue for the quarter was up 68.4% on a year-over-year basis. During the same period in the prior year, the company posted $0.07 earnings per share.

Wall Street Analysts Forecast Growth

A number of research analysts have issued reports on the stock. Leerink Partners reaffirmed a "market perform" rating on shares of Sarepta Therapeutics in a report on Monday, July 21st. Cantor Fitzgerald reiterated a "neutral" rating on shares of Sarepta Therapeutics in a research report on Monday, June 16th. BMO Capital Markets increased their price target on shares of Sarepta Therapeutics from $25.00 to $50.00 and gave the company a "market perform" rating in a research report on Tuesday, July 29th. Guggenheim lowered their price target on shares of Sarepta Therapeutics from $112.00 to $98.00 and set a "buy" rating on the stock in a research report on Wednesday, May 7th. Finally, Robert W. Baird increased their price target on shares of Sarepta Therapeutics from $30.00 to $35.00 and gave the company an "outperform" rating in a research report on Thursday, July 17th. Six analysts have rated the stock with a sell rating, sixteen have issued a hold rating and eight have given a buy rating to the company's stock. Based on data from MarketBeat, Sarepta Therapeutics presently has a consensus rating of "Hold" and an average target price of $49.12.

Institutional Inflows and Outflows

A number of institutional investors have recently bought and sold shares of the stock. Byrne Asset Management LLC acquired a new stake in shares of Sarepta Therapeutics in the first quarter valued at approximately $30,000. Center for Financial Planning Inc. acquired a new stake in shares of Sarepta Therapeutics in the first quarter valued at approximately $31,000. Ancora Advisors LLC raised its holdings in shares of Sarepta Therapeutics by 150.0% in the first quarter. Ancora Advisors LLC now owns 500 shares of the biotechnology company's stock valued at $32,000 after purchasing an additional 300 shares during the last quarter. Banque Transatlantique SA acquired a new stake in shares of Sarepta Therapeutics in the first quarter valued at approximately $44,000. Finally, Pandora Wealth Inc. acquired a new position in Sarepta Therapeutics during the first quarter worth $45,000. Institutional investors own 86.68% of the company's stock.

Sarepta Therapeutics Stock Performance

The firm has a market capitalization of $1.78 billion, a price-to-earnings ratio of -6.72 and a beta of 0.46. The stock's fifty day moving average is $22.54 and its two-hundred day moving average is $58.69. The company has a quick ratio of 2.46, a current ratio of 4.02 and a debt-to-equity ratio of 1.00.

Sarepta Therapeutics Company Profile

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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