Wall Street Zen Upgrades Nuvalent (NASDAQ:NUVL) to Sell

Key Points

• Wall Street Zen upgraded Nuvalent to a sell rating, adding to a wave of more cautious analyst sentiment on the stock.
• Several other firms recently downgraded Nuvalent or cut price targets, leaving the company with a consensus Hold rating and an average target price of $127.73.
• Nuvalent reported a Q1 EPS loss of $1.39, missing estimates, while the stock traded near its 52-week high at about $123.96 and executives recently sold shares.

Nuvalent (NASDAQ:NUVL - Get Free Report) was upgraded by investment analysts at Wall Street Zen to a "sell" rating in a note issued to investors on Saturday.

Several other research firms have also recently issued reports on NUVL. Piper Sandler cut Nuvalent from an "overweight" rating to a "neutral" rating and set a $124.00 price objective for the company. in a research report on Tuesday, June 9th. Guggenheim lowered shares of Nuvalent from a "buy" rating to a "neutral" rating and decreased their target price for the stock from $151.00 to $124.00 in a research report on Wednesday, June 10th. Sanford C. Bernstein cut shares of Nuvalent from an "outperform" rating to a "market perform" rating and lowered their price target for the stock from $172.00 to $124.00 in a research note on Wednesday, June 24th. UBS Group cut shares of Nuvalent from a "buy" rating to a "neutral" rating and reduced their price objective for the company from $138.00 to $124.00 in a research note on Wednesday, June 10th. Finally, Canaccord Genuity Group cut shares of Nuvalent from a "strong-buy" rating to a "hold" rating in a research note on Tuesday, June 9th. Four investment analysts have rated the stock with a Buy rating, fifteen have issued a Hold rating and one has issued a Sell rating to the stock. Based on data from MarketBeat, the stock has a consensus rating of "Hold" and an average target price of $127.73.

Nuvalent Stock Performance

NASDAQ NUVL opened at $123.96 on Friday. The stock has a market capitalization of $9.79 billion, a price-to-earnings ratio of -20.46 and a beta of 1.14. The business's 50 day moving average is $113.85 and its two-hundred day moving average is $106.52. Nuvalent has a 12-month low of $71.13 and a 12-month high of $123.99.

Nuvalent (NASDAQ:NUVL - Get Free Report) last posted its quarterly earnings results on Thursday, May 7th. The company reported ($1.39) EPS for the quarter, missing the consensus estimate of ($1.35) by ($0.04). During the same quarter last year, the business earned ($1.18) earnings per share. Equities analysts forecast that Nuvalent will post -5.74 earnings per share for the current fiscal year.

Insider Transactions at Nuvalent

In other Nuvalent news, CEO James Richard Porter sold 30,000 shares of the company's stock in a transaction on Monday, July 6th. The stock was sold at an average price of $123.72, for a total value of $3,711,600.00. Following the sale, the chief executive officer owned 324,879 shares of the company's stock, valued at approximately $40,194,029.88. This represents a 8.45% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Henry E. Pelish sold 2,111 shares of the firm's stock in a transaction on Thursday, July 9th. The shares were sold at an average price of $123.81, for a total value of $261,362.91. Following the completion of the transaction, the insider owned 63,493 shares of the company's stock, valued at approximately $7,861,068.33. This represents a 3.22% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders sold a total of 125,971 shares of company stock worth $13,358,939 over the last ninety days. 5.02% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Nuvalent

Hedge funds have recently added to or reduced their stakes in the business. Vanguard Group Inc. lifted its holdings in shares of Nuvalent by 13.9% in the fourth quarter. Vanguard Group Inc. now owns 5,244,271 shares of the company's stock valued at $527,521,000 after purchasing an additional 639,264 shares in the last quarter. Wellington Management Group LLP increased its stake in shares of Nuvalent by 7.0% during the 4th quarter. Wellington Management Group LLP now owns 2,461,823 shares of the company's stock worth $247,635,000 after purchasing an additional 160,958 shares in the last quarter. JPMorgan Chase & Co. increased its stake in shares of Nuvalent by 32.9% during the 4th quarter. JPMorgan Chase & Co. now owns 2,205,251 shares of the company's stock worth $221,826,000 after purchasing an additional 545,542 shares in the last quarter. Price T Rowe Associates Inc. MD raised its position in shares of Nuvalent by 18.6% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 2,146,938 shares of the company's stock worth $215,962,000 after purchasing an additional 336,518 shares during the last quarter. Finally, RA Capital Management L.P. raised its position in shares of Nuvalent by 50.8% during the 4th quarter. RA Capital Management L.P. now owns 1,880,057 shares of the company's stock worth $189,115,000 after purchasing an additional 633,601 shares during the last quarter. 97.26% of the stock is currently owned by hedge funds and other institutional investors.

Nuvalent Company Profile

Nuvalent, Inc NASDAQ: NUVL is a clinical-stage precision oncology company focused on the discovery, development and commercialization of targeted therapies for patients with genetically defined cancers. Founded in 2019 and headquartered in San Diego, California, Nuvalent applies structure-guided drug design to develop small molecule inhibitors that address key oncogenic drivers. The company's research platform integrates insights from cancer biology, medicinal chemistry and translational science to create therapies with differentiated selectivity and potency against validated targets.

Nuvalent's lead pipeline candidates include NVL-520, a highly selective RET inhibitor designed to minimize off-target effects, and NVL-655, a potent covalent inhibitor targeting KRAS G12D mutations.

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