XOMA Royalty (NASDAQ:XOMA) Sees Strong Trading Volume - Still a Buy?

Key Points

• XOMA Royalty saw unusually strong trading volume, with 342,730 shares changing hands, and the stock finished lower at $43.05, down from the prior close of $44.22.
• Analyst sentiment has cooled: several firms recently downgraded the stock, and the consensus rating is now Hold with an average price target of $53.75.
• The company recently missed earnings and revenue expectations for the quarter, posting $0.17 EPS versus $0.19 expected and $12.32 million in revenue versus $13.91 million expected.

XOMA Royalty Corporation (NASDAQ:XOMA - Get Free Report) saw unusually-strong trading volume on Monday . 342,730 shares changed hands during trading, an increase of 16% from the previous session's volume of 295,767 shares.The stock last traded at $43.05 and had previously closed at $44.22.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently commented on XOMA shares. Lucid Cap Mkts downgraded XOMA Royalty from a "strong-buy" rating to a "hold" rating in a report on Monday, April 27th. HC Wainwright cut XOMA Royalty from a "buy" rating to a "neutral" rating and set a $39.00 target price for the company. in a report on Thursday, April 30th. Zacks Research raised shares of XOMA Royalty from a "strong sell" rating to a "hold" rating in a research report on Wednesday, April 8th. Benchmark lowered shares of XOMA Royalty from a "buy" rating to a "hold" rating in a report on Friday, May 22nd. Finally, Weiss Ratings raised shares of XOMA Royalty from a "hold (c-)" rating to a "hold (c)" rating in a research report on Friday, May 29th. One investment analyst has rated the stock with a Buy rating and six have issued a Hold rating to the company. Based on data from MarketBeat.com, the company has an average rating of "Hold" and a consensus price target of $53.75.

XOMA Royalty Stock Down 3.8%

The stock has a market capitalization of $533.28 million, a price-to-earnings ratio of 27.07 and a beta of 0.86. The firm has a 50-day moving average of $42.14 and a 200 day moving average of $33.73. The company has a current ratio of 3.59, a quick ratio of 3.59 and a debt-to-equity ratio of 0.96.

XOMA Royalty (NASDAQ:XOMA - Get Free Report) last issued its quarterly earnings data on Tuesday, May 12th. The biotechnology company reported $0.17 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.19 by ($0.02). XOMA Royalty had a net margin of 53.46% and a return on equity of 12.56%. The firm had revenue of $12.32 million during the quarter, compared to analyst estimates of $13.91 million. On average, sell-side analysts anticipate that XOMA Royalty Corporation will post 0.9 earnings per share for the current year.

Hedge Funds Weigh In On XOMA Royalty

Institutional investors have recently added to or reduced their stakes in the company. Dimensional Fund Advisors LP grew its stake in shares of XOMA Royalty by 207.7% during the first quarter. Dimensional Fund Advisors LP now owns 133,360 shares of the biotechnology company's stock valued at $4,182,000 after acquiring an additional 90,025 shares in the last quarter. Bank of New York Mellon Corp lifted its stake in shares of XOMA Royalty by 9.7% in the first quarter. Bank of New York Mellon Corp now owns 74,984 shares of the biotechnology company's stock worth $2,352,000 after acquiring an additional 6,600 shares in the last quarter. Opaleye Management Inc. boosted its holdings in XOMA Royalty by 14.7% in the fourth quarter. Opaleye Management Inc. now owns 292,590 shares of the biotechnology company's stock valued at $7,780,000 after purchasing an additional 37,503 shares during the last quarter. Squarepoint Ops LLC acquired a new stake in XOMA Royalty during the 4th quarter valued at approximately $237,000. Finally, Panagora Asset Management Inc. grew its stake in XOMA Royalty by 24.2% during the 4th quarter. Panagora Asset Management Inc. now owns 21,229 shares of the biotechnology company's stock valued at $564,000 after purchasing an additional 4,135 shares in the last quarter. Institutional investors and hedge funds own 95.92% of the company's stock.

XOMA Royalty Company Profile

XOMA Royalty NASDAQ: XOMA is a specialty healthcare royalty company that acquires and manages royalty interests in small-molecule and biologic drugs. The company's business model centers on purchasing royalty streams on marketed or near-market pharmaceutical products, providing capital to developers in exchange for a share of future net sales. By focusing on late-stage assets with established clinical and commercial profiles, XOMA Royalty aims to generate predictable, long-term cash flows for its shareholders.

The company's investment portfolio spans a range of therapeutic areas, including oncology, immunology and rare diseases.

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