Arvinas (NASDAQ:ARVN) Shares Gap Up – Should You Buy?

Arvinas, Inc. (NASDAQ:ARVN) gapped up prior to trading on Tuesday . The stock had previously closed at $11.04, but opened at $12.90. Arvinas shares last traded at $13.0250, with a volume of 5,228,623 shares.

Wall Street Analyst Weigh In

A number of research firms have commented on ARVN. BTIG Research upped their price target on Arvinas from $10.00 to $14.00 and gave the company a “buy” rating in a research report on Thursday, October 30th. Guggenheim dropped their price target on Arvinas from $16.00 to $15.00 and set a “buy” rating for the company in a research note on Thursday, August 7th. Stephens lifted their price target on shares of Arvinas from $14.00 to $15.00 and gave the company an “overweight” rating in a report on Monday, November 10th. Barclays upped their price objective on shares of Arvinas from $15.00 to $16.00 and gave the stock an “overweight” rating in a report on Thursday, November 6th. Finally, HC Wainwright dropped their target price on shares of Arvinas from $24.00 to $18.00 and set a “buy” rating for the company in a research report on Thursday, August 7th. Eleven equities research analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and two have issued a Sell rating to the company. According to MarketBeat, the stock has an average rating of “Hold” and a consensus target price of $16.39.

Arvinas Stock Down 2.7%

The firm has a market cap of $720.23 million, a P/E ratio of -13.83 and a beta of 2.38. The business has a fifty day simple moving average of $9.35 and a 200-day simple moving average of $8.04.

Arvinas (NASDAQ:ARVN) last released its earnings results on Wednesday, November 5th. The company reported ($0.48) earnings per share for the quarter, topping analysts’ consensus estimates of ($0.75) by $0.27. Arvinas had a negative net margin of 18.73% and a negative return on equity of 9.77%. The firm had revenue of $41.90 million for the quarter, compared to the consensus estimate of $29.36 million. During the same period in the prior year, the firm earned ($0.68) EPS. The company’s revenue was down 59.1% compared to the same quarter last year. On average, sell-side analysts anticipate that Arvinas, Inc. will post -3.81 EPS for the current fiscal year.

Arvinas declared that its Board of Directors has authorized a share buyback plan on Wednesday, September 17th that allows the company to buyback $100.00 million in shares. This buyback authorization allows the company to buy up to 17.9% of its shares through open market purchases. Shares buyback plans are usually a sign that the company’s board believes its shares are undervalued.

Insider Activity

In related news, Director Briggs Morrison purchased 30,000 shares of the company’s stock in a transaction dated Monday, September 22nd. The shares were purchased at an average cost of $7.57 per share, with a total value of $227,100.00. Following the transaction, the director directly owned 76,021 shares in the company, valued at $575,478.97. This trade represents a 65.19% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Insiders own 4.73% of the company’s stock.

Institutional Investors Weigh In On Arvinas

Hedge funds have recently added to or reduced their stakes in the stock. Vanguard Group Inc. lifted its holdings in shares of Arvinas by 18.4% during the 1st quarter. Vanguard Group Inc. now owns 8,362,200 shares of the company’s stock valued at $58,703,000 after buying an additional 1,299,639 shares during the period. Monaco Asset Management SAM increased its position in Arvinas by 185.6% during the second quarter. Monaco Asset Management SAM now owns 900,936 shares of the company’s stock valued at $6,631,000 after acquiring an additional 585,477 shares during the last quarter. Acadian Asset Management LLC lifted its holdings in Arvinas by 791.1% in the second quarter. Acadian Asset Management LLC now owns 1,427,832 shares of the company’s stock valued at $10,498,000 after acquiring an additional 1,267,593 shares during the period. Campbell & CO Investment Adviser LLC purchased a new position in Arvinas in the second quarter worth about $404,000. Finally, Palumbo Wealth Management LLC bought a new stake in shares of Arvinas during the 2nd quarter valued at about $492,000. 95.19% of the stock is owned by institutional investors.

Arvinas Company Profile

Arvinas, Inc, a clinical-stage biotechnology company, engages in the discovery, development, and commercialization of therapies to degrade disease-causing proteins. The company engineers proteolysis targeting chimeras (PROTAC) targeted protein degraders that are designed to harness the body’s own natural protein disposal system to degrade and remove disease-causing proteins.