Seattle Genetics’ (SGEN) “Hold” Rating Reiterated at JPMorgan Chase & Co.
Seattle Genetics (NASDAQ:SGEN)‘s stock had its “hold” rating restated by stock analysts at JPMorgan Chase & Co. in a note issued to investors on Tuesday.
The analysts wrote, “Forecasts; We Expect Shares to Be Pressured Monday morning, ViewRay announced preliminary 2017 revenue of $34M and 4Q17 orders of $34M. Both metrics were significantly below our expectations. With so much investor focus on system sales and conversion to revenue, we expect VRAY to trade off today. The company recognized revenue on 4 MRIdian Linac Systems in the quarter. For the full year, VRAY announced total revenue of $34M. We had modeled $42.5M in revenue for the full year. Management noted that revenue recognition was delayed on one of the 5 systems shipped or installed in the quarter. That delay should result in $7M in revenue recognized in a later period. Investors have been eager to see backlog convert to revenue and this miss is likely to disappoint. In the quarter, VRAY received $34M in new MRIdian Linac System orders, less than the $48M we had forecasted. That order number is lower the company’s orders in the second quarter and likely does not demonstrate enough of an uptick in momentum from the $29.9M order reported in 3Q.””
Several other research firms also recently weighed in on SGEN. Barclays upgraded Seattle Genetics from an “equal weight” rating to an “overweight” rating and lifted their price objective for the company from $60.00 to $70.00 in a report on Friday, October 20th. Zacks Investment Research downgraded Seattle Genetics from a “buy” rating to a “hold” rating in a report on Monday, October 16th. SunTrust Banks set a $52.00 target price on shares of Seattle Genetics and gave the stock a “hold” rating in a report on Friday, October 27th. Cowen reiterated a “hold” rating on shares of Seattle Genetics in a report on Sunday, October 29th. Finally, Morgan Stanley boosted their target price on shares of Seattle Genetics from $64.00 to $69.00 and gave the stock an “overweight” rating in a report on Tuesday, October 31st. Thirteen research analysts have rated the stock with a hold rating, ten have given a buy rating and one has assigned a strong buy rating to the company. The company has an average rating of “Buy” and an average price target of $63.76.
Seattle Genetics (NASDAQ:SGEN) last released its quarterly earnings data on Thursday, October 26th. The biotechnology company reported ($0.19) earnings per share for the quarter, beating the consensus estimate of ($0.42) by $0.23. The firm had revenue of $135.29 million during the quarter, compared to the consensus estimate of $112.76 million. Seattle Genetics had a negative return on equity of 32.41% and a negative net margin of 26.53%. The firm’s quarterly revenue was up 27.3% on a year-over-year basis. During the same period in the previous year, the company posted ($0.23) earnings per share. sell-side analysts predict that Seattle Genetics will post -0.93 earnings per share for the current fiscal year.
In related news, insider Clay B. Siegall sold 18,832 shares of the company’s stock in a transaction that occurred on Wednesday, October 11th. The stock was sold at an average price of $61.18, for a total value of $1,152,141.76. The sale was disclosed in a document filed with the SEC, which is available at this link. Also, CFO Todd E. Simpson sold 39,385 shares of the company’s stock in a transaction that occurred on Wednesday, November 1st. The shares were sold at an average price of $60.91, for a total value of $2,398,940.35. The disclosure for this sale can be found here. In the last quarter, insiders sold 157,210 shares of company stock worth $9,273,250. 34.70% of the stock is owned by insiders.
A number of hedge funds and other institutional investors have recently modified their holdings of the stock. Vanguard Group Inc. boosted its position in Seattle Genetics by 2.3% in the 2nd quarter. Vanguard Group Inc. now owns 7,530,515 shares of the biotechnology company’s stock worth $389,628,000 after purchasing an additional 167,828 shares in the last quarter. BlackRock Inc. boosted its position in Seattle Genetics by 2.6% in the 2nd quarter. BlackRock Inc. now owns 7,453,483 shares of the biotechnology company’s stock worth $385,644,000 after purchasing an additional 185,823 shares in the last quarter. Capital International Investors boosted its position in Seattle Genetics by 63.7% in the 3rd quarter. Capital International Investors now owns 4,460,246 shares of the biotechnology company’s stock worth $242,682,000 after purchasing an additional 1,735,657 shares in the last quarter. Manning & Napier Advisors LLC purchased a new stake in Seattle Genetics in the 3rd quarter worth approximately $140,098,000. Finally, Matrix Capital Management Company LP boosted its position in Seattle Genetics by 18.8% in the 2nd quarter. Matrix Capital Management Company LP now owns 2,118,000 shares of the biotechnology company’s stock worth $109,585,000 after purchasing an additional 335,000 shares in the last quarter. Hedge funds and other institutional investors own 98.89% of the company’s stock.
About Seattle Genetics
Seattle Genetics, Inc is a biotechnology company focused on the development and commercialization of therapies for the treatment of cancer. The Company is engaged in the development and sale of pharmaceutical products on its own behalf or in collaboration with others. The Company’s marketed product ADCETRIS, or brentuximab vedotin, is an antibody-drug conjugate (ADC).
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