Syndax Pharmaceuticals (NASDAQ:SNDX) Shares Gap Down on Disappointing Earnings

Key Points

• Syndax Pharmaceuticals shares fell sharply, opening at $17.31 versus the prior close of $19.08, after quarterly EPS of ($0.55) missed estimates by $0.10 and revenue of $72.79 million came in below expectations. Revenue nevertheless increased 91.8% year over year.
• Analyst sentiment remains broadly positive, with a consensus “Moderate Buy” rating and an average price target of $42.36, despite HC Wainwright trimming its target to $38.
• Insiders sold shares: executives disposed of 105,914 shares worth $2.12 million over the past three months, while institutional investors including AQR Capital Management increased their positions.

Shares of Syndax Pharmaceuticals, Inc. (NASDAQ:SNDX - Get Free Report) gapped down prior to trading on Wednesday following a dissappointing earnings announcement. The stock had previously closed at $19.08, but opened at $17.31. Syndax Pharmaceuticals shares last traded at $18.77, with a volume of 473,306 shares changing hands.

The company reported ($0.55) earnings per share (EPS) for the quarter, missing analysts' consensus estimates of ($0.45) by ($0.10). The business had revenue of $72.79 million during the quarter, compared to analysts' expectations of $79.36 million. Syndax Pharmaceuticals had a negative net margin of 111.88% and a negative return on equity of 256.65%. Syndax Pharmaceuticals's revenue for the quarter was up 91.8% on a year-over-year basis. During the same period last year, the company posted ($0.83) EPS.

Wall Street Analyst Weigh In

Several brokerages recently weighed in on SNDX. HC Wainwright dropped their target price on Syndax Pharmaceuticals from $40.00 to $38.00 and set a "buy" rating for the company in a report on Wednesday. Barclays increased their price objective on Syndax Pharmaceuticals from $35.00 to $37.00 and gave the company an "overweight" rating in a research note on Friday, May 1st. UBS Group reiterated a "buy" rating on shares of Syndax Pharmaceuticals in a report on Friday, June 12th. Weiss Ratings lowered shares of Syndax Pharmaceuticals from a "sell (d-)" rating to a "sell (e+)" rating in a report on Tuesday, July 28th. Finally, Bank of America reaffirmed a "buy" rating on shares of Syndax Pharmaceuticals in a research note on Wednesday. One investment analyst has rated the stock with a Strong Buy rating, twelve have issued a Buy rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of "Moderate Buy" and an average price target of $42.36.

Insider Activity

In other news, CMO Nicholas A.J. Botwood sold 31,235 shares of Syndax Pharmaceuticals stock in a transaction dated Friday, June 12th. The stock was sold at an average price of $18.14, for a total value of $566,602.90. Following the completion of the transaction, the chief marketing officer owned 60,885 shares of the company's stock, valued at $1,104,453.90. The trade was a 33.91% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Michael A. Metzger sold 32,375 shares of Syndax Pharmaceuticals stock in a transaction dated Wednesday, July 8th. The stock was sold at an average price of $24.24, for a total transaction of $784,770.00. Following the completion of the transaction, the chief executive officer directly owned 484,843 shares of the company's stock, valued at $11,752,594.32. This trade represents a 6.26% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders have sold 105,914 shares of company stock worth $2,120,789 in the last three months. 4.80% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

Hedge funds have recently made changes to their positions in the stock. AQR Capital Management LLC increased its position in Syndax Pharmaceuticals by 478.8% during the first quarter. AQR Capital Management LLC now owns 377,444 shares of the company's stock valued at $4,637,000 after acquiring an additional 312,231 shares during the last quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its stake in shares of Syndax Pharmaceuticals by 5.8% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 56,842 shares of the company's stock valued at $705,000 after purchasing an additional 3,094 shares during the period. Caxton Associates LLP purchased a new stake in shares of Syndax Pharmaceuticals during the 1st quarter valued at about $257,000. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC lifted its stake in shares of Syndax Pharmaceuticals by 18.0% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 200,696 shares of the company's stock worth $2,466,000 after purchasing an additional 30,596 shares during the period. Finally, Legal & General Group Plc boosted its holdings in shares of Syndax Pharmaceuticals by 4.9% in the second quarter. Legal & General Group Plc now owns 84,575 shares of the company's stock worth $792,000 after buying an additional 3,937 shares during the last quarter.

Syndax Pharmaceuticals Price Performance

The company has a market capitalization of $1.71 billion, a P/E ratio of -6.90 and a beta of 0.40. The company has a debt-to-equity ratio of 8.26, a current ratio of 5.47 and a quick ratio of 5.06. The firm's 50-day moving average is $20.40 and its 200-day moving average is $21.38.

Syndax Pharmaceuticals Company Profile

Syndax Pharmaceuticals is a clinical-stage biopharmaceutical company dedicated to developing novel therapies for the treatment of cancer. Headquartered in Waltham, Massachusetts, the company focuses on small-molecule inhibitors that target key epigenetic and protein interaction pathways. Syndax's research platform aims to enhance the effectiveness of existing therapies and address high unmet medical needs in oncology.

The company's lead investigational candidate, entinostat, is a selective class I histone deacetylase (HDAC) inhibitor being evaluated for multiple solid tumor and hematologic indications.

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