Ariad Pharmaceuticals Inc. (ARIA) Rating Increased to Strong-Buy at Zacks Investment Research
Ariad Pharmaceuticals Inc. (NASDAQ:ARIA) was upgraded by Zacks Investment Research from a “hold” rating to a “strong-buy” rating in a research report issued on Wednesday. The brokerage currently has a $16.00 target price on the pharmaceutical company’s stock. Zacks Investment Research’s target price would indicate a potential upside of 14.70% from the stock’s previous close.
According to Zacks, “ARIAD’s cancer treatment, Iclusig, is performing well – sales should be driven by field team expansion, label expansion, increasing clinical experience and patient retention programs. ARIAD finished filing a rolling NDA for its most advanced pipeline candidate, brigatinib in Sep and could well become a two product commercial company in 2017. Longer-term growth could be driven by AP32788 and new opportunities including immuno-oncology. We are positive on the Incyte deal which will allow the company to focus on the U.S. market. It also provides the company with a non-dilutive source of funds. However, we remain concerned about ARIAD’s dependence on a single product, Iclusig, for near-term growth. Additionally, concerns regarding tougher label warnings could remain an overhang. Competition in the oncology market is also high.”
Other research analysts have also recently issued reports about the stock. Jefferies Group reissued a “buy” rating and set a $13.00 target price on shares of Ariad Pharmaceuticals in a research report on Friday, July 29th. JMP Securities reaffirmed a “buy” rating on shares of Ariad Pharmaceuticals in a report on Monday, June 6th. Cowen and Company reaffirmed a “buy” rating and issued a $10.00 price target on shares of Ariad Pharmaceuticals in a report on Monday, June 6th. Royal Bank Of Canada reaffirmed a “hold” rating on shares of Ariad Pharmaceuticals in a report on Monday, June 20th. Finally, Leerink Swann started coverage on shares of Ariad Pharmaceuticals in a report on Monday. They issued an “outperform” rating on the stock. One analyst has rated the stock with a sell rating, one has issued a hold rating, six have given a buy rating and one has issued a strong buy rating to the company’s stock. Ariad Pharmaceuticals presently has a consensus rating of “Buy” and an average price target of $10.13.
Ariad Pharmaceuticals (NASDAQ:ARIA) traded down 0.538% during trading on Wednesday, reaching $13.875. 2,534,875 shares of the company’s stock traded hands. The company has a 50 day moving average price of $11.02 and a 200-day moving average price of $8.42. The company’s market cap is $2.67 billion. Ariad Pharmaceuticals has a 12-month low of $4.37 and a 12-month high of $14.26.
Ariad Pharmaceuticals (NASDAQ:ARIA) last posted its earnings results on Thursday, July 28th. The pharmaceutical company reported $0.59 EPS for the quarter, topping analysts’ consensus estimates of ($0.11) by $0.70. The firm had revenue of $65.30 million for the quarter, compared to analyst estimates of $60.64 million. During the same period in the previous year, the firm posted ($0.28) earnings per share. The company’s revenue for the quarter was up 133.0% on a year-over-year basis. On average, equities research analysts forecast that Ariad Pharmaceuticals will post ($0.09) EPS for the current fiscal year.
In other news, insider Timothy P. Clackson sold 20,000 shares of the company’s stock in a transaction dated Thursday, September 22nd. The shares were sold at an average price of $13.43, for a total transaction of $268,600.00. Following the completion of the transaction, the insider now owns 208,772 shares in the company, valued at $2,803,807.96. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, insider Timothy P. Clackson sold 18,286 shares of the company’s stock in a transaction dated Friday, July 22nd. The stock was sold at an average price of $8.11, for a total transaction of $148,299.46. Following the transaction, the insider now owns 248,208 shares of the company’s stock, valued at approximately $2,012,966.88. The disclosure for this sale can be found here. Insiders own 8.20% of the company’s stock.
Several institutional investors have recently added to or reduced their stakes in ARIA. Consonance Capital Management LP purchased a new position in Ariad Pharmaceuticals during the first quarter valued at approximately $35,629,000. FMR LLC raised its position in shares of Ariad Pharmaceuticals by 73.2% in the second quarter. FMR LLC now owns 6,130,056 shares of the pharmaceutical company’s stock worth $45,300,000 after buying an additional 2,589,810 shares in the last quarter. Norges Bank bought a new position in shares of Ariad Pharmaceuticals during the fourth quarter worth about $10,412,000. CQS Cayman LP bought a new position in shares of Ariad Pharmaceuticals during the second quarter worth about $8,365,000. Finally, Tekla Capital Management LLC bought a new position in shares of Ariad Pharmaceuticals during the second quarter worth about $3,710,000. Institutional investors and hedge funds own 71.99% of the company’s stock.
Ariad Pharmaceuticals Company Profile
ARIAD Pharmaceuticals, Inc (ARIAD) is an oncology company. The Company is focused on transforming the lives of cancer patients with medicines. The Company’s product pipeline includes Iclusig (ponatinib), brigatinib, AP32788 and ridaforolimus. The Company’s Iclusig is a tyrosine kinase inhibitor (TKI) that is approved in the United States, the European Union, Australia, Switzerland, Israel and Canada for the treatment of adult patients with chronic myeloid leukemia (CML), and Philadelphia chromosome-positive acute lymphoblastic leukemia (Ph+ ALL).
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