Zacks Investment Research Lowers Sarepta Therapeutics (SRPT) to Sell

Sarepta Therapeutics (NASDAQ:SRPT) was downgraded by Zacks Investment Research from a “hold” rating to a “sell” rating in a report issued on Friday.

According to Zacks, “Sarepta's Exondys 51 is the first DMD treatment to gain approval in the United States. Also, a potential marketing approval in the EU should further boost sales.The company is also focused on reimbursement programs. Moreover, the company’s collaboration agreements with Summit Pharmaceuticals and Catabasis as well as its own follow-on exon-skipping pipeline candidates represent the most comprehensive approach to treat DMD. Meanwhile, the settlement of the patent litigation with BioMarin removes a major overhang for Sarepta. However, dependence on a single product, Exondys 51, is a concern. Nonetheless, Sarepta expects a pickup in patient starts and conversion rates as 2017 progresses. The company’s shares have outperformed the industry so far this year. Loss estimates have widened ahead of Q4 earnings. The company has a mixed record of earnings surprises in the recent quarters.”

SRPT has been the topic of several other research reports. Credit Suisse Group restated an “outperform” rating and issued a $81.00 price target on shares of Sarepta Therapeutics in a research report on Monday, October 2nd. Robert W. Baird reiterated a “buy” rating and set a $101.00 target price on shares of Sarepta Therapeutics in a research report on Tuesday, October 17th. Oppenheimer reiterated a “buy” rating and set a $76.00 target price on shares of Sarepta Therapeutics in a research report on Wednesday, December 27th. William Blair reiterated an “outperform” rating on shares of Sarepta Therapeutics in a research report on Monday, October 2nd. Finally, Piper Jaffray Companies reiterated an “overweight” rating and set a $55.00 target price (up previously from $50.00) on shares of Sarepta Therapeutics in a research report on Thursday, September 7th. Two investment analysts have rated the stock with a sell rating, four have assigned a hold rating and nineteen have issued a buy rating to the company’s stock. Sarepta Therapeutics presently has a consensus rating of “Buy” and an average target price of $63.88.

Shares of Sarepta Therapeutics (SRPT) traded down $0.74 during mid-day trading on Friday, reaching $57.81. The company had a trading volume of 1,874,600 shares, compared to its average volume of 2,139,100. The firm has a market cap of $3,520.00, a PE ratio of -28.34 and a beta of 1.37. Sarepta Therapeutics has a 1 year low of $26.26 and a 1 year high of $59.95. The company has a debt-to-equity ratio of 0.04, a current ratio of 10.44 and a quick ratio of 9.52.

Sarepta Therapeutics (NASDAQ:SRPT) last issued its quarterly earnings results on Wednesday, October 25th. The biotechnology company reported ($0.20) earnings per share (EPS) for the quarter, beating the Thomson Reuters’ consensus estimate of ($0.86) by $0.66. The firm had revenue of $45.95 million for the quarter, compared to analysts’ expectations of $41.29 million. Sarepta Therapeutics had a negative return on equity of 51.72% and a negative net margin of 112.08%. During the same quarter in the previous year, the firm posted ($0.95) EPS. equities research analysts predict that Sarepta Therapeutics will post -3.11 earnings per share for the current year.

In related news, SVP Shamim Ruff sold 10,000 shares of the company’s stock in a transaction that occurred on Monday, November 6th. The stock was sold at an average price of $55.00, for a total value of $550,000.00. Following the sale, the senior vice president now owns 37,045 shares of the company’s stock, valued at approximately $2,037,475. The transaction was disclosed in a filing with the SEC, which is available through this link. Also, CEO Douglas S. Ingram bought 38,138 shares of Sarepta Therapeutics stock in a transaction that occurred on Wednesday, November 8th. The stock was bought at an average cost of $52.44 per share, for a total transaction of $1,999,956.72. Following the purchase, the chief executive officer now owns 420,196 shares in the company, valued at approximately $22,035,078.24. The disclosure for this purchase can be found here. Corporate insiders own 9.60% of the company’s stock.

Hedge funds have recently bought and sold shares of the stock. Ameritas Investment Partners Inc. lifted its stake in Sarepta Therapeutics by 6.3% in the 2nd quarter. Ameritas Investment Partners Inc. now owns 4,561 shares of the biotechnology company’s stock valued at $154,000 after buying an additional 271 shares in the last quarter. Cubist Systematic Strategies LLC lifted its stake in Sarepta Therapeutics by 116.4% in the 2nd quarter. Cubist Systematic Strategies LLC now owns 4,600 shares of the biotechnology company’s stock valued at $155,000 after buying an additional 2,474 shares in the last quarter. Ladenburg Thalmann Financial Services Inc. lifted its stake in Sarepta Therapeutics by 140.9% in the 3rd quarter. Ladenburg Thalmann Financial Services Inc. now owns 4,262 shares of the biotechnology company’s stock valued at $193,000 after buying an additional 2,493 shares in the last quarter. Fox Run Management L.L.C. purchased a new stake in Sarepta Therapeutics in the 3rd quarter valued at approximately $204,000. Finally, Bayesian Capital Management LP purchased a new stake in Sarepta Therapeutics in the 2nd quarter valued at approximately $206,000. 82.02% of the stock is currently owned by hedge funds and other institutional investors.

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About Sarepta Therapeutics

Sarepta Therapeutics, Inc is a biopharmaceutical company. The Company focuses on the discovery and development of ribose nucleic acid (RNA)-targeted therapeutics for the treatment of rare neuromuscular diseases. It operates through discovering, developing, manufacturing and delivering therapies to patients with Duchenne muscular dystrophy (DMD).

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