Cytokinetics (NASDAQ:CYTK) Reaches New 52-Week Low – Time to Sell?

Cytokinetics, Incorporated (NASDAQ:CYTK)’s share price hit a new 52-week low on Thursday. The stock traded as low as $57.55 and last traded at $56.60, with a volume of 575,260 shares trading hands. The stock had previously closed at $63.60.

Cytokinetics News Roundup

Here are the key news stories impacting Cytokinetics this week:

• Positive Sentiment: Q3 results topped expectations. Cytokinetics reported a loss of $1.37 per share, narrower than the $1.43 analyst estimate and $2.55 loss a year earlier. Revenue of $47.56 million beat the $41.88 million consensus and rose sharply year over year, supporting the view that the business is progressing. Cytokinetics Q3 Loss Narrows, Revenue Rises
• Positive Sentiment: Aficamten and MYQORZO could provide further growth drivers. Recent coverage highlights aficamten data and the potential effect of MYQORZO adoption, which investors may view as important to the company’s commercial outlook. A separate valuation article argues CYTK could be 41% undervalued, though that is an estimate rather than a guaranteed return. Valuation and aficamten article MYQORZO adoption article
• Negative Sentiment: Losses continue. Despite the year-over-year improvement and earnings beat, Cytokinetics still reported a quarterly net loss, so investors will look for sustained revenue growth and progress toward profitability. Q3 loss and revenue estimates
• Neutral Sentiment: Insider sale was under a pre-arranged plan. EVP Fady Malik sold 3,500 shares, about 2.22% of his holdings, but the transaction was conducted under a Rule 10b5-1 plan, which makes it a less direct signal about near-term business prospects. Insider sale report

Wall Street Analysts Forecast Growth

CYTK has been the subject of a number of research analyst reports. Weiss Ratings reissued a “sell (d-)” rating on shares of Cytokinetics in a report on Thursday, October 15th. Citizens Jmp lifted their price objective on shares of Cytokinetics from $105.00 to $110.00 and gave the stock a “market outperform” rating in a research note on Friday, August 7th. Citigroup reaffirmed a “market outperform” rating on shares of Cytokinetics in a research note on Friday, August 7th. Cantor Fitzgerald reiterated an “overweight” rating on shares of Cytokinetics in a report on Friday, September 11th. Finally, JPMorgan Chase & Co. increased their target price on shares of Cytokinetics from $97.00 to $103.00 and gave the company an “overweight” rating in a research note on Thursday, August 13th. Nineteen equities research analysts have rated the stock with a Buy rating, one has assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $105.44.

Cytokinetics Stock Performance

The stock has a market cap of $6.87 billion, a price-to-earnings ratio of -7.67 and a beta of 0.45. The company’s 50 day simple moving average is $66.63 and its two-hundred day simple moving average is $70.05.

Cytokinetics (NASDAQ:CYTK) last issued its earnings results on Wednesday, November 4th. The biopharmaceutical company reported ($1.37) earnings per share for the quarter, topping the consensus estimate of ($1.43) by $0.06. The firm had revenue of $47.56 million during the quarter, compared to analyst estimates of $41.88 million. During the same period in the previous year, the company earned ($2.55) earnings per share. The business’s revenue for the quarter was up 2356.5% on a year-over-year basis. On average, equities research analysts predict that Cytokinetics, Incorporated will post -5.97 earnings per share for the current fiscal year.

Insiders Place Their Bets

In other news, Director Robert E. Landry sold 1,000 shares of the firm’s stock in a transaction dated Tuesday, September 15th. The stock was sold at an average price of $72.13, for a total value of $72,130.00. Following the sale, the director directly owned 8,184 shares of the company’s stock, valued at approximately $590,311.92. This trade represents a 10.89% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Robert Blum sold 7,500 shares of Cytokinetics stock in a transaction dated Monday, November 2nd. The stock was sold at an average price of $62.81, for a total value of $471,075.00. Following the completion of the transaction, the chief executive officer owned 278,544 shares in the company, valued at $17,495,348.64. The trade was a 2.62% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 180,926 shares of company stock valued at $12,510,340 over the last 90 days. 2.60% of the stock is currently owned by company insiders.

Institutional Trading of Cytokinetics

Several hedge funds have recently added to or reduced their stakes in CYTK. New York Life Investment Management LLC increased its position in Cytokinetics by 29.3% in the 3rd quarter. New York Life Investment Management LLC now owns 19,047 shares of the biopharmaceutical company’s stock worth $1,255,000 after buying an additional 4,316 shares during the period. Retirement Systems of Alabama boosted its position in shares of Cytokinetics by 2.1% in the third quarter. Retirement Systems of Alabama now owns 143,395 shares of the biopharmaceutical company’s stock valued at $9,451,000 after acquiring an additional 2,969 shares during the period. Allspring Global Investments Holdings LLC boosted its position in shares of Cytokinetics by 4.0% in the third quarter. Allspring Global Investments Holdings LLC now owns 7,833 shares of the biopharmaceutical company’s stock valued at $514,000 after acquiring an additional 302 shares during the period. Candriam S.C.A. boosted its position in shares of Cytokinetics by 39.3% in the third quarter. Candriam S.C.A. now owns 617,386 shares of the biopharmaceutical company’s stock valued at $40,841,000 after acquiring an additional 174,320 shares during the period. Finally, Ethic Inc. grew its stake in shares of Cytokinetics by 17.3% in the third quarter. Ethic Inc. now owns 22,240 shares of the biopharmaceutical company’s stock worth $1,466,000 after acquiring an additional 3,275 shares during the last quarter.

About Cytokinetics

Cytokinetics, Incorporated is a biopharmaceutical company focused on discovering and developing medicines that target muscle function and contractility. The company applies muscle biology and sarcomere science to develop potential treatments for cardiovascular and neuromuscular diseases, including conditions in which impaired muscle performance contributes to disease progression.

Its leading investigational program is aficamten, a selective cardiac myosin inhibitor being developed for hypertrophic cardiomyopathy and other potential cardiovascular indications.