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) shares gapped up prior to trading on Tuesday after the company announced better than expected quarterly earnings. 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 for the quarter, beating the consensus estimate of ($1.01) by $0.18. Syndax Pharmaceuticals had a negative return on equity of 130.47% and a negative net margin of 428.48%. The firm had revenue of $37.96 million during the quarter, compared to analyst estimates of $26.64 million. During the same quarter in the previous year, the business earned ($0.80) EPS. Syndax Pharmaceuticals's revenue for the quarter was up 984.5% compared to the same quarter last year.

Analyst Upgrades and Downgrades

Several equities research analysts have commented on SNDX shares. Wall Street Zen upgraded Syndax Pharmaceuticals to a "sell" rating in a research note on Tuesday, May 6th. Guggenheim reiterated a "buy" rating and set a $32.00 price objective on shares of Syndax Pharmaceuticals in a research note on Tuesday, May 6th. The Goldman Sachs Group started coverage on Syndax Pharmaceuticals in a research note on Thursday, July 10th. They set a "buy" rating and a $18.00 price objective for the company. UBS Group dropped their price target on Syndax Pharmaceuticals from $37.00 to $35.00 and set a "buy" rating for the company in a research report on Tuesday, July 15th. Finally, B. Riley raised Syndax Pharmaceuticals to a "strong-buy" rating in a research note on Wednesday. One analyst has rated the stock with a sell rating, one has issued a hold rating, ten have given a buy rating and one has given a strong buy rating to the stock. According to MarketBeat.com, Syndax Pharmaceuticals has an average rating of "Moderate Buy" and an average target price of $36.91.

Insiders Place Their Bets

In other news, CEO Michael A. Metzger sold 7,534 shares of Syndax Pharmaceuticals 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 sale, the chief executive officer owned 298,661 shares in the company, valued at approximately $2,774,560.69. The trade was a 2.46% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. 4.10% of the stock is currently owned by corporate insiders.

Institutional Trading of Syndax Pharmaceuticals

A number of hedge funds and other institutional investors have recently made changes to their positions in SNDX. Wells Fargo & Company MN grew its holdings in shares of Syndax Pharmaceuticals by 37.6% during the fourth quarter. Wells Fargo & Company MN now owns 42,117 shares of the company's stock worth $557,000 after buying an additional 11,498 shares during the last quarter. Russell Investments Group Ltd. boosted its holdings in Syndax Pharmaceuticals by 114.8% in the 4th quarter. Russell Investments Group Ltd. now owns 29,022 shares of the company's stock valued at $384,000 after purchasing an additional 15,508 shares in the last quarter. Renaissance Technologies LLC purchased a new stake in Syndax Pharmaceuticals in the 4th quarter valued at approximately $9,002,000. Optimize Financial Inc purchased a new stake in Syndax Pharmaceuticals in the 4th quarter valued at approximately $152,000. Finally, Barclays PLC boosted its holdings in Syndax Pharmaceuticals by 4.5% in the 4th quarter. Barclays PLC now owns 196,051 shares of the company's stock valued at $2,592,000 after purchasing an additional 8,422 shares in the last quarter.

Syndax Pharmaceuticals Price Performance

The stock has a fifty day simple moving average of $10.08 and a two-hundred day simple moving average of $11.91. The company has a market cap of $1.08 billion, a PE ratio of -3.21 and a beta of 0.74. The company has a current ratio of 4.71, a quick ratio of 5.75 and a debt-to-equity ratio of 2.06.

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).