Incyte (NASDAQ:INCY) Shares Gap Down After Earnings Miss

Incyte Corporation (NASDAQ:INCY)’s share price gapped down before the market opened on Tuesday following a weaker than expected earnings announcement. The stock had previously closed at $109.03, but opened at $103.00. Incyte shares last traded at $101.96, with a volume of 585,178 shares trading hands.

The biopharmaceutical company reported $1.80 earnings per share for the quarter, missing analysts’ consensus estimates of $1.96 by ($0.16). Incyte had a return on equity of 26.34% and a net margin of 25.03%.The firm had revenue of $1.51 billion for the quarter, compared to analyst estimates of $1.35 billion. During the same period in the prior year, the firm earned $1.43 EPS. The firm’s revenue was up 27.8% on a year-over-year basis.

Key Incyte News

Here are the key news stories impacting Incyte this week:

• Positive Sentiment: Q4 revenue beat — Incyte reported $1.51B in Q4 sales (vs. ~$1.35B expected), reflecting 28% YoY growth driven by Jakafi and Opzelura; this supports near‑term top‑line momentum. Earnings Press Release
• Positive Sentiment: Earnings call emphasized pipeline beyond Jakafi — management highlighted growth drivers and progress on non‑Jakafi programs, which could ease long‑term reliance on the franchise. Earnings Call Transcript
• Positive Sentiment: HC Wainwright reiterates Buy with $135 target — a high‑conviction bullish call pointing to underappreciated pipeline value and long‑term revenue durability. HC Wainwright Buy Note
• Neutral Sentiment: Some voices argue the selloff is an overreaction to a guidance miss — analysis suggesting the weakness may be near‑term and that the stock could reprice if pipeline data and longer‑term growth prove resilient. Seeking Alpha: Overreaction
• Neutral Sentiment: Short‑interest reports in the feed show zero shares/NaN changes — data appears erroneous and should be treated with caution; no clear short squeeze signal. Article Title
• Negative Sentiment: EPS miss and weak 2026 revenue guide — Q4 EPS of $1.80 missed estimates (~$1.96) and management issued a soft full‑year net product revenue outlook, heightening concerns about replacing Jakafi sales as patents lapse. Reuters: Weak 2026 Forecast
• Negative Sentiment: Analyst downgrades/target cuts add pressure — Royal Bank of Canada cut its target to $92 (sector perform), signaling downside risk vs. current levels; other shops trimmed targets too. TickerReport: RBC Cut

Analysts Set New Price Targets

INCY has been the topic of several recent analyst reports. The Goldman Sachs Group reaffirmed a “neutral” rating and issued a $90.00 price target on shares of Incyte in a research report on Thursday, January 8th. Guggenheim upgraded shares of Incyte from a “neutral” rating to a “buy” rating and set a $125.00 price objective on the stock in a research note on Monday, November 3rd. Wells Fargo & Company cut their target price on shares of Incyte from $107.00 to $101.00 and set an “equal weight” rating for the company in a research note on Wednesday. Truist Financial set a $103.00 price target on shares of Incyte in a report on Wednesday, December 24th. Finally, Stifel Nicolaus boosted their price objective on shares of Incyte from $119.00 to $120.00 and gave the stock a “buy” rating in a report on Wednesday. Nine analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, the company currently has an average rating of “Hold” and a consensus price target of $103.94.

Insider Activity

In other Incyte news, insider Thomas Tray sold 2,774 shares of the company’s stock in a transaction dated Friday, December 19th. The shares were sold at an average price of $100.00, for a total transaction of $277,400.00. Following the sale, the insider directly owned 22,973 shares of the company’s stock, valued at approximately $2,297,300. This represents a 10.77% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, EVP Michael James Morrissey sold 54,008 shares of Incyte stock in a transaction that occurred on Tuesday, December 16th. The shares were sold at an average price of $97.29, for a total transaction of $5,254,438.32. Following the completion of the transaction, the executive vice president owned 31,830 shares of the company’s stock, valued at $3,096,740.70. This trade represents a 62.92% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders have sold 95,225 shares of company stock valued at $9,519,745 in the last ninety days. 17.80% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Incyte

Institutional investors and hedge funds have recently bought and sold shares of the business. Arrowstreet Capital Limited Partnership raised its holdings in shares of Incyte by 701.8% in the second quarter. Arrowstreet Capital Limited Partnership now owns 2,730,648 shares of the biopharmaceutical company’s stock valued at $185,957,000 after buying an additional 2,390,084 shares during the last quarter. AQR Capital Management LLC increased its position in Incyte by 21.8% in the 2nd quarter. AQR Capital Management LLC now owns 8,201,455 shares of the biopharmaceutical company’s stock valued at $558,519,000 after acquiring an additional 1,465,286 shares in the last quarter. Norges Bank bought a new position in shares of Incyte in the second quarter worth about $96,776,000. Pacer Advisors Inc. lifted its position in shares of Incyte by 8,091.6% during the third quarter. Pacer Advisors Inc. now owns 1,248,642 shares of the biopharmaceutical company’s stock worth $105,897,000 after purchasing an additional 1,233,399 shares in the last quarter. Finally, Marshall Wace LLP bought a new stake in shares of Incyte during the second quarter valued at approximately $82,485,000. Institutional investors and hedge funds own 96.97% of the company’s stock.

Incyte Trading Down 1.2%

The company has a quick ratio of 3.13, a current ratio of 3.23 and a debt-to-equity ratio of 0.01. The business’s fifty day moving average is $101.75 and its two-hundred day moving average is $93.81. The firm has a market cap of $19.40 billion, a price-to-earnings ratio of 15.42, a price-to-earnings-growth ratio of 0.60 and a beta of 0.82.

About Incyte

Incyte Corporation is a Wilmington, Delaware–based biopharmaceutical company focused on the discovery, development and commercialization of novel therapies in oncology and inflammation. Since its founding in 2002, Incyte has grown from a small research organization into a global enterprise, advancing a portfolio of internally developed and partnered assets. The company’s research and development efforts center on small-molecule drugs and biologics that modulate critical signaling pathways implicated in cancer, autoimmune disorders and rare diseases.

The company’s flagship product is Jakafi® (ruxolitinib), a Janus kinase (JAK) inhibitor approved for the treatment of myelofibrosis and polycythemia vera.