Viking Therapeutics (NASDAQ:VKTX) Downgraded by Zacks Research to Strong Sell

Key Points

• Zacks Research downgraded Viking Therapeutics (NASDAQ:VKTX) from a "hold" to a "strong sell" in a research note issued Tuesday.
• Analyst coverage remains mixed-to-positive overall, with three "Strong Buy" and nine "Buy" ratings contributing to a MarketBeat consensus of a "Moderate Buy" and an average price target of $87.14 despite divergent individual targets (~$75–$107).
• There has been notable insider selling recently—CFO Greg Zante sold 57,661 shares at $32.90 and a director sold 16,000 shares, with insiders disposing of 476,090 shares (~$16M) over the last quarter—while the company reported Q3 EPS of -$0.81 (miss) and revenue essentially flat.

Viking Therapeutics (NASDAQ:VKTX - Get Free Report) was downgraded by research analysts at Zacks Research from a "hold" rating to a "strong sell" rating in a research note issued on Tuesday,Zacks.com reports.

A number of other analysts also recently commented on VKTX. Cantor Fitzgerald set a $105.00 price objective on shares of Viking Therapeutics in a report on Thursday, October 23rd. JPMorgan Chase & Co. cut their price objective on shares of Viking Therapeutics from $80.00 to $75.00 and set an "overweight" rating for the company in a research report on Friday, October 24th. Morgan Stanley raised their target price on Viking Therapeutics from $98.00 to $102.00 and gave the stock an "overweight" rating in a research note on Thursday, October 23rd. Canaccord Genuity Group boosted their price target on shares of Viking Therapeutics from $106.00 to $107.00 and gave the company a "buy" rating in a research note on Wednesday, November 12th. Finally, HC Wainwright restated a "buy" rating and set a $102.00 price target on shares of Viking Therapeutics in a research report on Monday, September 29th. Three equities research analysts have rated the stock with a Strong Buy rating, nine have given a Buy rating, two have assigned a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, Viking Therapeutics currently has an average rating of "Moderate Buy" and a consensus price target of $87.14.

Viking Therapeutics Stock Performance

Shares of VKTX opened at $33.33 on Tuesday. The stock has a 50 day moving average price of $35.34 and a 200 day moving average price of $32.80. Viking Therapeutics has a one year low of $18.92 and a one year high of $43.15. The stock has a market capitalization of $3.77 billion, a price-to-earnings ratio of -15.72 and a beta of 0.71.

Viking Therapeutics (NASDAQ:VKTX - Get Free Report) last announced its earnings results on Wednesday, October 22nd. The biotechnology company reported ($0.81) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.67) by ($0.14). The business's revenue for the quarter was up .0% on a year-over-year basis. During the same period in the prior year, the business earned ($0.22) EPS. On average, analysts predict that Viking Therapeutics will post -1.56 earnings per share for the current year.

Insider Activity at Viking Therapeutics

In related news, CFO Greg Zante sold 57,661 shares of the company's stock in a transaction that occurred on Monday, January 5th. The shares were sold at an average price of $32.90, for a total transaction of $1,897,046.90. Following the sale, the chief financial officer directly owned 189,891 shares in the company, valued at approximately $6,247,413.90. This represents a 23.29% 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, Director Matthew W. Foehr sold 16,000 shares of the stock in a transaction that occurred on Friday, January 2nd. The shares were sold at an average price of $35.11, for a total transaction of $561,760.00. Following the completion of the sale, the director directly owned 132,036 shares in the company, valued at approximately $4,635,783.96. This represents a 10.81% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold 476,090 shares of company stock worth $15,985,782 over the last quarter. 4.10% of the stock is currently owned by insiders.

Institutional Trading of Viking Therapeutics

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Raleigh Capital Management Inc. lifted its position in shares of Viking Therapeutics by 58.0% during the 4th quarter. Raleigh Capital Management Inc. now owns 945 shares of the biotechnology company's stock worth $33,000 after buying an additional 347 shares during the last quarter. Allworth Financial LP raised its stake in Viking Therapeutics by 58.4% during the 2nd quarter. Allworth Financial LP now owns 955 shares of the biotechnology company's stock worth $25,000 after acquiring an additional 352 shares in the last quarter. Glass Jacobson Investment Advisors llc purchased a new stake in Viking Therapeutics in the second quarter valued at $28,000. Lodestone Wealth Management LLC acquired a new position in Viking Therapeutics in the fourth quarter valued at $39,000. Finally, Elevation Point Wealth Partners LLC purchased a new position in shares of Viking Therapeutics during the second quarter worth about $29,000. Institutional investors and hedge funds own 76.03% of the company's stock.

Viking Therapeutics Company Profile

Viking Therapeutics, Inc is a clinical-stage biopharmaceutical company focused on the development of novel therapies for metabolic and endocrine disorders. Headquartered in San Diego, California, the company's pipeline leverages small-molecule approaches to target hormone signaling pathways implicated in conditions such as non‐alcoholic steatohepatitis (NASH), dyslipidemia, type 2 diabetes and muscle wasting disorders.

The company's lead programs include VK2809, a thyroid hormone receptor‐beta agonist designed to reduce liver fat and improve lipid profiles in patients with NASH and dyslipidemia, and VK5211, a selective androgen receptor modulator (SARM) aimed at enhancing muscle mass and function in individuals with muscle wasting conditions.

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