Travere Therapeutics (NASDAQ:TVTX) Shares Down 7.8% - Should You Sell?

Key Points

• Shares of Travere Therapeutics fell 7.8% on Friday to about $29, with trading volume down roughly 48% versus average and the stock sitting near its 50‑day ($29.29) and below its 200‑day ($31.02) moving averages.
• Insiders sold 312,067 shares (~$9.76M) in the past three months, including CEO Eric Dube’s sale of 100,087 shares, leaving insiders with 4.19% ownership.
• Analysts are mostly positive with a consensus rating of Moderate Buy and an average price target of $38.27, though individual ratings range from sell to buy.

Travere Therapeutics, Inc. (NASDAQ:TVTX - Get Free Report) shares dropped 7.8% during trading on Friday . The company traded as low as $28.80 and last traded at $28.9960. Approximately 1,000,297 shares traded hands during trading, a decline of 48% from the average daily volume of 1,912,459 shares. The stock had previously closed at $31.44.

Analyst Upgrades and Downgrades

TVTX has been the topic of a number of research analyst reports. Weiss Ratings reiterated a "sell (e+)" rating on shares of Travere Therapeutics in a research report on Wednesday, January 21st. Piper Sandler upped their price objective on Travere Therapeutics from $35.00 to $38.00 and gave the company a "neutral" rating in a research report on Friday, February 6th. Guggenheim restated a "buy" rating and issued a $49.00 price objective on shares of Travere Therapeutics in a research report on Wednesday, January 14th. JPMorgan Chase & Co. reduced their price objective on Travere Therapeutics from $44.00 to $41.00 and set an "overweight" rating on the stock in a research report on Wednesday, March 25th. Finally, Wall Street Zen downgraded Travere Therapeutics from a "strong-buy" rating to a "buy" rating in a research report on Saturday, February 21st. Nine analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has assigned a Sell rating to the company's stock. Based on data from MarketBeat.com, the company currently has a consensus rating of "Moderate Buy" and an average target price of $38.27.

Travere Therapeutics Price Performance

The company has a debt-to-equity ratio of 2.71, a current ratio of 2.74 and a quick ratio of 2.70. The company has a 50-day moving average price of $29.29 and a 200-day moving average price of $31.02. The firm has a market capitalization of $2.64 billion, a PE ratio of -95.18 and a beta of 0.86.

Insider Activity

In related news, insider Elizabeth E. Reed sold 10,000 shares of the stock in a transaction dated Tuesday, January 20th. The stock was sold at an average price of $27.34, for a total transaction of $273,400.00. Following the transaction, the insider directly owned 90,270 shares in the company, valued at approximately $2,467,981.80. This represents a 9.97% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. Also, CEO Eric M. Dube sold 100,087 shares of the stock in a transaction dated Tuesday, February 3rd. The stock was sold at an average price of $32.28, for a total value of $3,230,808.36. Following the transaction, the chief executive officer owned 432,886 shares in the company, valued at $13,973,560.08. This trade represents a 18.78% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 312,067 shares of company stock valued at $9,755,570 in the last three months. Company insiders own 4.19% of the company's stock.

Hedge Funds Weigh In On Travere Therapeutics

Large investors have recently added to or reduced their stakes in the business. Emerald Advisers LLC increased its stake in Travere Therapeutics by 2.6% during the third quarter. Emerald Advisers LLC now owns 2,146,767 shares of the company's stock worth $51,308,000 after acquiring an additional 55,407 shares during the last quarter. Essex Investment Management Co. LLC acquired a new stake in shares of Travere Therapeutics in the third quarter valued at about $3,872,000. Voya Investment Management LLC boosted its holdings in Travere Therapeutics by 16.2% in the third quarter. Voya Investment Management LLC now owns 194,854 shares of the company's stock valued at $4,657,000 after purchasing an additional 27,133 shares during the last quarter. Palisades Investment Partners LLC purchased a new position in Travere Therapeutics in the fourth quarter valued at about $5,264,000. Finally, Lisanti Capital Growth LLC purchased a new position in Travere Therapeutics in the third quarter valued at about $3,095,000.

About Travere Therapeutics

Travere Therapeutics, Inc NASDAQ: TVTX is a biopharmaceutical company headquartered in San Diego, California, dedicated to the development and commercialization of therapies for rare kidney and genetic disorders. The company's mission is to address unmet needs in conditions with limited treatment options by focusing on diseases that affect small patient populations. Travere combines research, development and commercial capabilities to bring innovative medicines to market.

The company's lead product is sparsentan, a dual endothelin angiotensin receptor antagonist that has received accelerated approval from the U.S.

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