Vir Biotechnology (NASDAQ:VIR) Trading Down 11.1% Following Weak Earnings

Key Points

• Vir Biotechnology's stock fell 11.1% to $4.52 after reporting weaker-than-expected earnings, with quarterly revenue down 60.5% year-over-year.
• The company posted an earnings per share of (0.80), missing analysts' estimates of (0.72) by (0.08).
• Analysts have mixed sentiments, with Goldman Sachs lowering the price target from $28.00 to $21.00 while Needham maintained a buy rating with a $14.00 target price.

Vir Biotechnology, Inc. (NASDAQ:VIR - Get Free Report) dropped 11.1% during mid-day trading on Thursday after the company announced weaker than expected quarterly earnings. The company traded as low as $4.58 and last traded at $4.52. Approximately 410,839 shares were traded during trading, a decline of 74% from the average daily volume of 1,575,894 shares. The stock had previously closed at $5.08.

The company reported ($0.80) earnings per share for the quarter, missing analysts' consensus estimates of ($0.72) by ($0.08). Vir Biotechnology had a negative return on equity of 47.46% and a negative net margin of 2,769.04%. The company had revenue of $1.21 million for the quarter, compared to analysts' expectations of $2.38 million. During the same period in the previous year, the business posted ($1.02) EPS. The business's revenue for the quarter was down 60.5% on a year-over-year basis.

Wall Street Analyst Weigh In

A number of analysts recently weighed in on VIR shares. The Goldman Sachs Group dropped their price objective on shares of Vir Biotechnology from $28.00 to $21.00 and set a "buy" rating on the stock in a report on Thursday, April 17th. Raymond James Financial started coverage on Vir Biotechnology in a report on Friday, July 11th. They issued an "outperform" rating for the company. Finally, Needham & Company LLC reissued a "buy" rating and set a $14.00 target price on shares of Vir Biotechnology in a research note on Thursday, May 22nd. One analyst has rated the stock with a hold rating and seven have issued a buy rating to the stock. According to MarketBeat, the company currently has an average rating of "Moderate Buy" and an average price target of $30.25.

Insiders Place Their Bets

In other Vir Biotechnology news, EVP Mark Eisner sold 6,796 shares of the company's stock in a transaction on Tuesday, July 15th. The shares were sold at an average price of $5.47, for a total value of $37,174.12. Following the completion of the transaction, the executive vice president owned 108,204 shares in the company, valued at $591,875.88. This represents a 5.91% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this hyperlink. Also, Director Vicki L. Sato sold 22,000 shares of the firm's stock in a transaction that occurred on Tuesday, July 1st. The stock was sold at an average price of $5.10, for a total transaction of $112,200.00. Following the transaction, the director directly owned 1,298,391 shares of the company's stock, valued at approximately $6,621,794.10. This trade represents a 1.67% decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 57,582 shares of company stock worth $294,930 over the last 90 days. 16.00% of the stock is owned by insiders.

Institutional Investors Weigh In On Vir Biotechnology

Hedge funds have recently made changes to their positions in the company. Mitsubishi UFJ Asset Management Co. Ltd. increased its holdings in Vir Biotechnology by 30.3% during the second quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 49,910 shares of the company's stock worth $252,000 after buying an additional 11,620 shares during the last quarter. Los Angeles Capital Management LLC acquired a new stake in Vir Biotechnology in the 2nd quarter valued at $63,000. Corton Capital Inc. bought a new stake in shares of Vir Biotechnology in the 2nd quarter worth $114,000. Bank of Montreal Can lifted its holdings in Vir Biotechnology by 243.2% during the second quarter. Bank of Montreal Can now owns 41,096 shares of the company's stock valued at $207,000 after purchasing an additional 29,122 shares during the last quarter. Finally, VIRGINIA RETIREMENT SYSTEMS ET Al purchased a new stake in shares of Vir Biotechnology in the second quarter worth about $289,000. Institutional investors and hedge funds own 65.32% of the company's stock.

Vir Biotechnology Stock Down 10.2%

The firm has a market capitalization of $630.93 million, a P/E ratio of -1.08 and a beta of 1.18. The business's 50-day simple moving average is $5.33 and its 200 day simple moving average is $6.56.

About Vir Biotechnology

Vir Biotechnology, Inc, an immunology company, develops therapeutic products to treat and prevent serious infectious diseases. Its clinical development pipeline consists of product candidates targeting hepatitis delta virus (HDV), hepatitis B virus (HBV), and human immunodeficiency virus (HIV). The company's preclinical candidates include those targeting influenza A and B, coronavirus disease 2019, respiratory syncytial virus (RSV) and human metapneumovirus (MPV), and human papillomavirus (HPV).

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