Vanda Pharmaceuticals (NASDAQ:VNDA) Trading Up 8.1% - Should You Buy?

Key Points

• Vanda shares jumped 8.1% to $8.53 in mid-day trading on Monday, though volume was below average (1.23M vs. a 2.78M session average).
• The company reported an EPS loss of ($2.39) that missed estimates and revenue of $57.22M below expectations, leaving Vanda unprofitable; analysts' consensus is a Moderate Buy with an average price target of $14.90.
• Corporate insiders, including the CEO and SVP, sold sizable stakes on March 2 (314,342 shares sold in the last 90 days), while institutional investors own roughly 88% of the stock.

Vanda Pharmaceuticals Inc. (NASDAQ:VNDA - Get Free Report)'s share price traded up 8.1% during mid-day trading on Monday . The stock traded as high as $8.56 and last traded at $8.53. 1,227,542 shares changed hands during mid-day trading, a decline of 56% from the average session volume of 2,782,062 shares. The stock had previously closed at $7.89.

Wall Street Analyst Weigh In

VNDA has been the topic of several recent analyst reports. UBS Group reissued a "buy" rating on shares of Vanda Pharmaceuticals in a report on Monday, January 5th. Wall Street Zen downgraded Vanda Pharmaceuticals from a "hold" rating to a "sell" rating in a research note on Saturday, February 14th. Zacks Research cut Vanda Pharmaceuticals from a "strong-buy" rating to a "hold" rating in a research note on Wednesday, February 18th. Jefferies Financial Group lifted their target price on Vanda Pharmaceuticals from $5.00 to $7.50 and gave the stock a "hold" rating in a report on Wednesday, December 31st. Finally, Cantor Fitzgerald reiterated an "overweight" rating on shares of Vanda Pharmaceuticals in a research report on Wednesday, December 17th. Five equities research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has issued a Sell rating to the company. According to MarketBeat.com, Vanda Pharmaceuticals currently has an average rating of "Moderate Buy" and an average price target of $14.90.

Vanda Pharmaceuticals Stock Performance

The company has a debt-to-equity ratio of 0.01, a current ratio of 2.39 and a quick ratio of 2.38. The firm has a market capitalization of $514.55 million, a PE ratio of -2.32 and a beta of 0.55. The firm has a fifty day moving average price of $7.60 and a 200 day moving average price of $6.03.

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

Insider Activity

In related news, SVP Gunther Birznieks sold 42,431 shares of the company's stock in a transaction on Monday, March 2nd. The stock was 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 approximately $4,087,009.19. The trade was a 7.91% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, CEO Mihael Hristos Polymeropoulos sold 156,235 shares of the firm's stock in a transaction dated Monday, March 2nd. The stock was sold at an average price of $8.17, for a total value of $1,276,439.95. Following the sale, the chief executive officer owned 2,704,496 shares of the company's stock, valued at $22,095,732.32. The trade was a 5.46% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold 314,342 shares of company stock valued at $2,583,985 in the last ninety days. Corporate insiders own 8.90% of the company's stock.

Institutional Inflows and Outflows

A number of institutional investors and hedge funds have recently added to or reduced their stakes in VNDA. Torren Management LLC purchased a new stake in Vanda Pharmaceuticals in the 4th quarter worth approximately $25,000. Russell Investments Group Ltd. increased its stake in shares of Vanda Pharmaceuticals by 456.6% in the third quarter. Russell Investments Group Ltd. now owns 6,495 shares of the biopharmaceutical company's stock worth $32,000 after acquiring an additional 5,328 shares during the last quarter. Quarry LP purchased a new stake in shares of Vanda Pharmaceuticals during the third quarter worth $53,000. Cerity Partners LLC acquired a new stake in Vanda Pharmaceuticals during the second quarter valued at $69,000. Finally, Boothbay Fund Management LLC acquired a new stake in Vanda Pharmaceuticals during the third quarter valued at $72,000. 88.14% of the stock is owned by hedge funds and other institutional investors.

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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