XOMA Royalty (NASDAQ:XOMA) Share Price Passes Above Two Hundred Day Moving Average - Should You Sell?

Key Points

• XOMA Royalty shares passed above their 200-day moving average ($30.08), trading as high as $40.15 and last at $39.37 on volume of 150,528.
• Analysts are split (three Buy, three Hold) but the MarketBeat consensus is a Moderate Buy with a consensus price target of $68.25, and HC Wainwright's $97 target notably above peers.
• The company beat quarterly expectations (EPS $0.12 vs. -$0.04 est.; revenue $13.76M vs. $11.13M), reported a 45.75% net margin, and analysts forecast about $0.94 EPS for the fiscal year.

XOMA Royalty Corporation (NASDAQ:XOMA - Get Free Report)'s share price passed above its two hundred day moving average during trading on Wednesday . The stock has a two hundred day moving average of $30.08 and traded as high as $40.15. XOMA Royalty shares last traded at $39.37, with a volume of 150,528 shares.

Analysts Set New Price Targets

A number of brokerages have recently weighed in on XOMA. Leerink Partners restated an "outperform" rating on shares of XOMA Royalty in a research note on Tuesday, February 24th. TD Cowen upgraded XOMA Royalty to a "hold" rating in a research note on Friday, February 13th. Weiss Ratings restated a "hold (c-)" rating on shares of XOMA Royalty in a research note on Monday, December 29th. HC Wainwright restated a "buy" rating and issued a $97.00 target price on shares of XOMA Royalty in a research note on Friday, March 20th. Finally, Zacks Research upgraded XOMA Royalty from a "strong sell" rating to a "hold" rating in a research note on Wednesday, April 8th. Three investment analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company's stock. Based on data from MarketBeat, the company has an average rating of "Moderate Buy" and a consensus price target of $68.25.

XOMA Royalty Stock Performance

The firm has a fifty day moving average of $30.19 and a 200-day moving average of $30.08. The firm has a market cap of $469.29 million, a P/E ratio of 26.97 and a beta of 0.68. The company has a quick ratio of 3.37, a current ratio of 3.37 and a debt-to-equity ratio of 1.15.

XOMA Royalty (NASDAQ:XOMA - Get Free Report) last issued its earnings results on Wednesday, March 18th. The biotechnology company reported $0.12 earnings per share (EPS) for the quarter, topping analysts' consensus estimates of ($0.04) by $0.16. XOMA Royalty had a return on equity of 10.32% and a net margin of 45.75%.The firm had revenue of $13.76 million for the quarter, compared to analysts' expectations of $11.13 million. Research analysts predict that XOMA Royalty Corporation will post 0.94 earnings per share for the current fiscal year.

Hedge Funds Weigh In On XOMA Royalty

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Opaleye Management Inc. boosted its holdings in XOMA Royalty by 14.7% during the fourth quarter. Opaleye Management Inc. now owns 292,590 shares of the biotechnology company's stock worth $7,780,000 after buying an additional 37,503 shares during the last quarter. Squarepoint Ops LLC bought a new position in XOMA Royalty during the fourth quarter worth about $237,000. Panagora Asset Management Inc. boosted its holdings in XOMA Royalty by 24.2% during the fourth quarter. Panagora Asset Management Inc. now owns 21,229 shares of the biotechnology company's stock worth $564,000 after buying an additional 4,135 shares during the last quarter. Barclays PLC boosted its holdings in XOMA Royalty by 12.1% during the fourth quarter. Barclays PLC now owns 14,822 shares of the biotechnology company's stock worth $394,000 after buying an additional 1,598 shares during the last quarter. Finally, State Street Corp boosted its holdings in XOMA Royalty by 4.7% during the fourth quarter. State Street Corp now owns 174,908 shares of the biotechnology company's stock worth $4,651,000 after buying an additional 7,873 shares during the last quarter. Institutional investors 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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