Zacks Investment Research Lowers Seattle Genetics, Inc. (SGEN) to Hold
Seattle Genetics, Inc. (NASDAQ:SGEN) was downgraded by Zacks Investment Research from a “buy” rating to a “hold” rating in a research note issued on Friday.
According to Zacks, “Seattle Genetics beat both earnings and sales estimates in the third quarter of 2017. Concurrently, the company raised 2017 revenues outlook.The company has upped its guidance for 2017 driven by a robust performance of Adcetris in the first half. We are also encouraged by the company’s efforts to expand the drug’s label. The company’s collaboration with Takeda for the global development and commercialization of Adcetris is encouraging. However, dependence on one product – Adcetris– for growth has its inherent risks. The recent label expansion of Merck’s Keytruda in the lymphoma indication is likely to increase competition. Though the company has multiple candidates in its pipeline, most of them are in early stages of development. The company’s shares have outperformed the industry year to date.”
Several other brokerages have also commented on SGEN. Barclays PLC upgraded shares of Seattle Genetics from an “equal weight” rating to an “overweight” rating and lifted their price target for the stock from $60.00 to $70.00 in a research note on Friday, October 20th. SunTrust Banks, Inc. set a $52.00 price target on shares of Seattle Genetics and gave the stock a “hold” rating in a research note on Friday, October 27th. Cowen and Company reiterated a “hold” rating on shares of Seattle Genetics in a research note on Sunday, October 29th. J P Morgan Chase & Co lifted their price target on shares of Seattle Genetics from $55.00 to $60.00 and gave the stock a “neutral” rating in a research note on Monday. Finally, Morgan Stanley lifted their price target on shares of Seattle Genetics from $64.00 to $69.00 and gave the stock an “overweight” rating in a research note on Tuesday. Two analysts have rated the stock with a sell rating, thirteen have given a hold rating, nine have issued a buy rating and one has issued a strong buy rating to the company. The stock has an average rating of “Hold” and a consensus price target of $63.00.
Seattle Genetics (NASDAQ:SGEN) last announced its quarterly earnings results on Thursday, October 26th. The biotechnology company reported ($0.19) EPS for the quarter, topping the Thomson Reuters’ consensus estimate of ($0.42) by $0.23. Seattle Genetics had a negative net margin of 26.53% and a negative return on equity of 33.16%. The firm had revenue of $135.29 million for the quarter, compared to analyst estimates of $112.76 million. During the same period last year, the business earned ($0.23) EPS. Seattle Genetics’s revenue for the quarter was up 27.3% compared to the same quarter last year.
In related news, CEO Clay B. Siegall sold 25,506 shares of the business’s stock in a transaction dated Monday, August 28th. The shares were sold at an average price of $47.89, for a total transaction of $1,221,482.34. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, insider Clay B. Siegall sold 18,832 shares of the business’s stock in a transaction dated Wednesday, October 11th. The stock was sold at an average price of $61.18, for a total transaction of $1,152,141.76. The disclosure for this sale can be found here. In the last three months, insiders have sold 173,761 shares of company stock worth $8,949,050. 34.70% of the stock is owned by insiders.
A number of hedge funds have recently added to or reduced their stakes in the stock. Swiss National Bank raised its position in Seattle Genetics by 0.9% during the third quarter. Swiss National Bank now owns 367,200 shares of the biotechnology company’s stock worth $19,979,000 after acquiring an additional 3,400 shares during the last quarter. Crossmark Global Holdings Inc. acquired a new position in Seattle Genetics during the third quarter worth about $274,000. Pictet Asset Management Ltd. raised its position in Seattle Genetics by 79.3% during the third quarter. Pictet Asset Management Ltd. now owns 1,266,426 shares of the biotechnology company’s stock worth $68,906,000 after acquiring an additional 560,110 shares during the last quarter. Fox Run Management L.L.C. raised its position in Seattle Genetics by 96.5% during the third quarter. Fox Run Management L.L.C. now owns 22,200 shares of the biotechnology company’s stock worth $1,208,000 after acquiring an additional 10,900 shares during the last quarter. Finally, Bristlecone Advisors LLC acquired a new position in Seattle Genetics during the third quarter worth about $180,000. 97.13% of the stock is currently owned by hedge funds and other institutional investors.
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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