Vir Biotechnology (NASDAQ:VIR) Stock Price Down 11.1% After Earnings Miss

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.

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

The company reported ($0.80) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.72) by ($0.08). Vir Biotechnology had a negative net margin of 2,895.94% and a negative return on equity of 50.22%. The business had revenue of $1.21 million for the quarter, compared to analyst estimates of $2.38 million. During the same period in the prior year, the business earned ($1.02) EPS. The company's revenue for the quarter was down 60.5% compared to the same quarter last year.

Wall Street Analyst Weigh In

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

Insider Transactions at Vir Biotechnology

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

Hedge Funds Weigh In On Vir Biotechnology

A number of hedge funds and other institutional investors have recently made changes to their positions in the stock. State of Tennessee Department of Treasury increased its holdings in shares of Vir Biotechnology by 3.2% during the fourth quarter. State of Tennessee Department of Treasury now owns 39,268 shares of the company's stock valued at $288,000 after acquiring an additional 1,227 shares in the last quarter. PNC Financial Services Group Inc. increased its holdings in shares of Vir Biotechnology by 26.2% during the first quarter. PNC Financial Services Group Inc. now owns 10,459 shares of the company's stock valued at $68,000 after acquiring an additional 2,171 shares in the last quarter. Focus Partners Wealth increased its holdings in shares of Vir Biotechnology by 15.3% during the first quarter. Focus Partners Wealth now owns 19,317 shares of the company's stock valued at $125,000 after acquiring an additional 2,566 shares in the last quarter. Invesco Ltd. increased its holdings in shares of Vir Biotechnology by 0.6% during the fourth quarter. Invesco Ltd. now owns 398,772 shares of the company's stock valued at $2,927,000 after acquiring an additional 2,574 shares in the last quarter. Finally, Mitsubishi UFJ Asset Management Co. Ltd. increased its holdings in shares of Vir Biotechnology by 9.1% during the first quarter. Mitsubishi UFJ Asset Management Co. Ltd. now owns 38,290 shares of the company's stock valued at $248,000 after acquiring an additional 3,209 shares in the last quarter. 65.32% of the stock is owned by institutional investors and hedge funds.

Vir Biotechnology Price Performance

The stock has a market cap of $594.56 million, a P/E ratio of -1.07 and a beta of 1.18. The company has a fifty day moving average price of $5.30 and a 200 day moving average price of $6.42.

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).