XOMA Royalty (NASDAQ:XOMA) Rating Lowered to "Hold" at Wall Street Zen

Key Points

• XOMA Royalty was downgraded from a "buy" to a "hold" rating by Wall Street Zen and retains a market cap of approximately $296.50 million.
• Despite the downgrade, HC Wainwright maintains a "buy" rating with a price target of $104.00, while Benchmark initiated coverage with a price target of $35.00.
• Recent insider trading showed a significant reduction in ownership, with CEO Owen Hughes selling over 25,000 shares and a major shareholder reducing their stake by 392,723 shares.

XOMA Royalty (NASDAQ:XOMA - Get Free Report) was downgraded by stock analysts at Wall Street Zen from a "buy" rating to a "hold" rating in a research report issued on Sunday.

A number of other equities research analysts have also recently weighed in on XOMA. HC Wainwright reiterated a "buy" rating and set a $104.00 price target on shares of XOMA Royalty in a research report on Wednesday, May 28th. Benchmark started coverage on XOMA Royalty in a research report on Thursday, April 17th. They issued a "buy" rating and a $35.00 target price on the stock.

XOMA Royalty Trading Down 0.7%

XOMA Royalty stock traded down $0.21 during trading on Friday, reaching $28.24. 10,490 shares of the company were exchanged, compared to its average volume of 42,758. The company has a debt-to-equity ratio of 1.18, a current ratio of 5.54 and a quick ratio of 5.54. The stock's 50 day simple moving average is $25.82 and its two-hundred day simple moving average is $24.22. The company has a market capitalization of $337.97 million, a P/E ratio of -24.55 and a beta of 1.00. XOMA Royalty has a 52-week low of $18.35 and a 52-week high of $35.00.

XOMA Royalty (NASDAQ:XOMA - Get Free Report) last posted its quarterly earnings results on Tuesday, May 13th. The biotechnology company reported $0.06 earnings per share for the quarter, beating the consensus estimate of ($0.26) by $0.32. The business had revenue of $15.91 million during the quarter, compared to analysts' expectations of $6.75 million. XOMA Royalty had a negative net margin of 13.04% and a negative return on equity of 12.43%. On average, equities research analysts expect that XOMA Royalty will post -1.41 earnings per share for the current fiscal year.

Insider Activity at XOMA Royalty

In other XOMA Royalty news, CEO Owen Hughes sold 25,637 shares of the business's stock in a transaction on Tuesday, May 20th. The shares were sold at an average price of $25.38, for a total value of $650,667.06. Following the completion of the transaction, the chief executive officer owned 62,701 shares in the company, valued at $1,591,351.38. The trade was a 29.02% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at the SEC website. Also, major shareholder Bvf Partners L. P/Il sold 392,723 shares of the company's stock in a transaction on Friday, May 16th. The stock was sold at an average price of $27.10, for a total value of $10,642,793.30. Following the sale, the insider directly owned 1,267,545 shares in the company, valued at $34,350,469.50. This represents a 23.65% decrease in their position. The disclosure for this sale can be found here. 7.20% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On XOMA Royalty

A number of institutional investors and hedge funds have recently made changes to their positions in the stock. GAMMA Investing LLC increased its position in shares of XOMA Royalty by 1,063.8% in the 1st quarter. GAMMA Investing LLC now owns 1,734 shares of the biotechnology company's stock valued at $35,000 after purchasing an additional 1,585 shares during the last quarter. Wells Fargo & Company MN increased its holdings in XOMA Royalty by 38.0% in the fourth quarter. Wells Fargo & Company MN now owns 4,300 shares of the biotechnology company's stock valued at $113,000 after buying an additional 1,183 shares during the last quarter. Deutsche Bank AG raised its stake in XOMA Royalty by 5,087.9% in the first quarter. Deutsche Bank AG now owns 6,433 shares of the biotechnology company's stock valued at $128,000 after buying an additional 6,309 shares in the last quarter. Bank of America Corp DE lifted its holdings in XOMA Royalty by 34.7% during the 4th quarter. Bank of America Corp DE now owns 7,796 shares of the biotechnology company's stock worth $205,000 after buying an additional 2,009 shares during the last quarter. Finally, Nuveen LLC purchased a new stake in XOMA Royalty during the 1st quarter worth about $286,000. 95.92% of the stock is owned by institutional investors and hedge funds.

About XOMA Royalty

XOMA Corporation operates as a biotech royalty aggregator in the United States and the Asia Pacific. It has a portfolio of economic rights to future potential milestone and royalty payments associated with partnered commercial and pre-commercial therapeutic candidates. The company also focuses on early to mid-stage clinical assets primarily in Phase 1 and 2 with commercial sales potential that are licensed to partners; and acquires milestone and royalty revenue streams on late-stage clinical or commercial assets.