Vanda Pharmaceuticals Inc. (NASDAQ:VNDA) Sees Significant Growth in Short Interest

Key Points

• Short interest jumped 25.3% to 4,346,005 shares as of Feb. 27, representing about 8.1% of the float and a days-to-cover of 0.7, signaling increased bearish trading activity.
• Insiders sold significant stakes on March 2 — SVP Gunther Birznieks and CFO Kevin Moran each sold ~42.4k shares at $8.27 — and insiders have disposed of 314,342 shares in the past 90 days, while insiders still own about 10% of the company.
• Analyst views are mixed but tilted positive with a consensus "Moderate Buy" and an average price target of $14.90 (Truist initiated a Buy $18 target), even as Vanda reported a Q that missed estimates (EPS -$2.39 vs. -$2.18; revenue $57.22M vs. $59.28M) and remains unprofitable.

Vanda Pharmaceuticals Inc. (NASDAQ:VNDA - Get Free Report) was the target of a large increase in short interest in February. As of February 27th, there was short interest totaling 4,346,005 shares, an increase of 25.3% from the February 12th total of 3,469,008 shares. Based on an average daily volume of 6,341,392 shares, the days-to-cover ratio is presently 0.7 days. Approximately 8.1% of the company's stock are sold short. Approximately 8.1% of the company's stock are sold short. Based on an average daily volume of 6,341,392 shares, the days-to-cover ratio is presently 0.7 days.

Insiders Place Their Bets

In related news, SVP Gunther Birznieks sold 42,431 shares of Vanda Pharmaceuticals stock in a transaction that occurred on Monday, March 2nd. The shares were sold at an average price of $8.27, for a total transaction of $350,904.37. Following the transaction, the senior vice president directly owned 494,197 shares of the company's stock, valued at $4,087,009.19. This trade represents a 7.91% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through this link. Also, CFO Kevin Patrick Moran sold 42,442 shares of the business's stock in a transaction that occurred on Monday, March 2nd. The stock was sold at an average price of $8.27, for a total transaction of $350,995.34. Following the completion of the transaction, the chief financial officer directly owned 411,380 shares of the company's stock, valued at $3,402,112.60. This trade represents a 9.35% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 314,342 shares of company stock worth $2,583,985. 10.00% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Vanda Pharmaceuticals

Several hedge funds have recently modified their holdings of VNDA. Torren Management LLC acquired a new stake in Vanda Pharmaceuticals in the 4th quarter worth approximately $25,000. Bailard Inc. increased its stake in Vanda Pharmaceuticals by 16.2% during the 2nd quarter. Bailard Inc. now owns 26,100 shares of the biopharmaceutical company's stock valued at $123,000 after purchasing an additional 3,631 shares in the last quarter. Panagora Asset Management Inc. raised its holdings in shares of Vanda Pharmaceuticals by 3.4% in the fourth quarter. Panagora Asset Management Inc. now owns 118,987 shares of the biopharmaceutical company's stock worth $1,049,000 after buying an additional 3,928 shares during the last quarter. Jane Street Group LLC lifted its stake in shares of Vanda Pharmaceuticals by 6.1% during the second quarter. Jane Street Group LLC now owns 79,107 shares of the biopharmaceutical company's stock worth $373,000 after buying an additional 4,533 shares during the period. Finally, Savant Capital LLC lifted its stake in shares of Vanda Pharmaceuticals by 30.3% during the third quarter. Savant Capital LLC now owns 22,493 shares of the biopharmaceutical company's stock worth $112,000 after buying an additional 5,229 shares during the period. Institutional investors and hedge funds own 88.14% of the company's stock.

Vanda Pharmaceuticals Stock Performance

Shares of VNDA opened at $8.81 on Friday. The company has a current ratio of 2.39, a quick ratio of 2.38 and a debt-to-equity ratio of 0.01. The firm has a market cap of $520.76 million, a PE ratio of -2.36 and a beta of 0.55. Vanda Pharmaceuticals has a 12 month low of $3.81 and a 12 month high of $9.94. The stock has a fifty day moving average price of $7.71 and a 200-day moving average price of $6.18.

Vanda Pharmaceuticals (NASDAQ:VNDA - Get Free Report) last announced its earnings results on Wednesday, February 11th. The biopharmaceutical company reported ($2.39) earnings per share for the quarter, missing the consensus estimate of ($2.18) by ($0.21). Vanda Pharmaceuticals had a negative return on equity of 23.85% and a negative net margin of 102.02%.The business had revenue of $57.22 million for the quarter, compared to analysts' expectations of $59.28 million. Equities research analysts predict that Vanda Pharmaceuticals will post -1.12 earnings per share for the current fiscal year.

Analyst Ratings Changes

A number of research analysts have recently issued reports on VNDA shares. Truist Financial began coverage on Vanda Pharmaceuticals in a report on Thursday, March 5th. They issued a "buy" rating and a $18.00 price target on the stock. Wall Street Zen cut Vanda Pharmaceuticals from a "hold" rating to a "sell" rating in a research note on Saturday, February 14th. Cantor Fitzgerald reaffirmed an "overweight" rating on shares of Vanda Pharmaceuticals in a research report on Wednesday, December 17th. Zacks Research lowered Vanda Pharmaceuticals from a "strong-buy" rating to a "hold" rating in a research note on Wednesday, February 18th. Finally, UBS Group reiterated a "buy" rating on shares of Vanda Pharmaceuticals in a report on Monday, January 5th. Five investment analysts have rated the stock with a Buy rating, two have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and an average price target of $14.90.

Vanda Pharmaceuticals Company Profile

Vanda Pharmaceuticals Inc is a clinical-stage biopharmaceutical company focused on the development and commercialization of innovative therapies for central nervous system (CNS) disorders and rare diseases. The company's research and development efforts center on sleep-wake regulation, mood disorders, and movement disorders. Vanda's mission is to address unmet medical needs by advancing novel molecules through clinical trials and regulatory review.

Vanda's flagship commercial product is Hetlioz (tasimelteon), a melatonin receptor agonist approved by the U.S.

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