Syndax Pharmaceuticals (NASDAQ:SNDX) Shares Gap Up on Better-Than-Expected Earnings

Key Points

• Syndax Pharmaceuticals experienced a significant increase in its stock price, opening at $12.41 after closing at $10.38, following an earnings report that beat expectations.
• The company reported a quarterly revenue of $37.96 million, significantly surpassing analyst estimates of $26.64 million, with a year-over-year revenue increase of 984.5%.
• Wall Street analysts remain optimistic with most rating the stock as a "buy," and the average target price set at $34.10.

Syndax Pharmaceuticals, Inc. (NASDAQ:SNDX - Get Free Report)'s stock price gapped up prior to trading on Tuesday following a better than expected earnings announcement. The stock had previously closed at $10.38, but opened at $12.41. Syndax Pharmaceuticals shares last traded at $12.02, with a volume of 1,551,513 shares.

The company reported ($0.83) earnings per share (EPS) for the quarter, beating the consensus estimate of ($1.01) by $0.18. Syndax Pharmaceuticals had a negative net margin of 428.48% and a negative return on equity of 130.47%. The firm had revenue of $37.96 million for the quarter, compared to analyst estimates of $26.64 million. During the same quarter in the previous year, the firm posted ($0.80) EPS. The business's revenue for the quarter was up 984.5% on a year-over-year basis.

Analyst Ratings Changes

SNDX has been the subject of a number of recent research reports. Guggenheim reissued a "buy" rating and issued a $32.00 target price on shares of Syndax Pharmaceuticals in a report on Tuesday, May 6th. Scotiabank increased their price objective on Syndax Pharmaceuticals from $16.00 to $17.00 and gave the stock a "sector perform" rating in a research note on Tuesday, May 6th. B. Riley upgraded shares of Syndax Pharmaceuticals to a "strong-buy" rating in a research note on Wednesday. Citigroup increased their target price on shares of Syndax Pharmaceuticals from $46.00 to $51.00 and gave the stock a "buy" rating in a research report on Tuesday. Finally, BTIG Research boosted their price target on shares of Syndax Pharmaceuticals from $43.00 to $56.00 and gave the company a "buy" rating in a research report on Tuesday. One equities research analyst has rated the stock with a sell rating, one has issued a hold rating, ten have issued a buy rating and one has assigned a strong buy rating to the stock. According to MarketBeat, the stock presently has a consensus rating of "Moderate Buy" and a consensus price target of $36.91.

Insider Activity at Syndax Pharmaceuticals

In other Syndax Pharmaceuticals news, CEO Michael A. Metzger sold 7,534 shares of the business's stock in a transaction dated Wednesday, July 16th. The stock was sold at an average price of $9.29, for a total transaction of $69,990.86. Following the completion of the sale, the chief executive officer directly owned 298,661 shares of the company's stock, valued at approximately $2,774,560.69. The trade was a 2.46% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Company insiders own 4.10% of the company's stock.

Institutional Inflows and Outflows

A number of large investors have recently made changes to their positions in SNDX. Soleus Capital Management L.P. lifted its stake in Syndax Pharmaceuticals by 128.4% in the fourth quarter. Soleus Capital Management L.P. now owns 2,492,000 shares of the company's stock valued at $32,944,000 after buying an additional 1,401,016 shares during the period. Octagon Capital Advisors LP bought a new stake in shares of Syndax Pharmaceuticals in the 4th quarter valued at about $11,951,000. Renaissance Technologies LLC acquired a new stake in shares of Syndax Pharmaceuticals in the 4th quarter valued at approximately $9,002,000. Altium Capital Management LLC bought a new position in Syndax Pharmaceuticals during the 4th quarter worth approximately $4,891,000. Finally, Cubist Systematic Strategies LLC acquired a new position in Syndax Pharmaceuticals during the fourth quarter valued at approximately $4,734,000.

Syndax Pharmaceuticals Price Performance

The company's 50 day simple moving average is $10.04 and its 200 day simple moving average is $11.92. The company has a debt-to-equity ratio of 2.06, a current ratio of 4.71 and a quick ratio of 5.75. The stock has a market cap of $1.10 billion, a P/E ratio of -3.27 and a beta of 0.74.

About Syndax Pharmaceuticals

Syndax Pharmaceuticals, Inc, a clinical-stage biopharmaceutical company, develops therapies for the treatment of cancer. Its lead product candidates are revumenib, a potent, selective, small molecule inhibitor of the menin-MLL binding interaction for the treatment of KMT2A rearranged, acute leukemias, and solid tumor; and SNDX-6352 or axatilimab, a monoclonal antibody that blocks the colony stimulating factor 1, or CSF-1 receptor for the treatment of patients with chronic graft versus host disease (cGVHD) and idiopathic pulmonary fibrosis (IPF).