Viking Therapeutics (NASDAQ:VKTX) Stock Price Down 8.9% - Should You Sell?

On Wednesday, shares of Viking Therapeutics, Inc. (NASDAQ:VKTX) fell by 8.9%. The stock dropped to as low as $41.60 before closing at $42.55. The trading volume was about 3,733,282 shares, which is a decrease of 15% compared to the average daily volume of 4,415,364 shares. The previous closing price was $46.70.

Analyst Ratings and Forecasts

Recently, multiple analysts have commented on VKTX. In a report released on the same day, HC Wainwright maintained a 'buy' rating and set a target price of $102.00. Similarly, JPMorgan Chase started coverage for Viking Therapeutics on September 11, giving it an 'overweight' rating with a price target of $80.00. On December 2, Piper Sandler also initiated coverage with an 'overweight' rating and a price target of $74.00. Moreover, William Blair confirmed a rating of 'outperform' for the stock, while B. Riley set a target price at $109.00. Overall, one analyst rated the stock as a 'sell,' while eleven recommend 'buy,' and two suggest a 'strong buy,' resulting in an average rating of 'Buy' and an average target price of $106.75 according to MarketBeat.

Recent Stock Performance

Viking Therapeutics has seen a significant decline, with the stock down 14.7% over recent weeks. The company's 50-day simple moving average stands at $58.96, while the 200-day average is at $58.20. With a market capitalization of $4.44 billion, the stock has a P/E ratio of -42.85 and a beta of 0.88.

Quarterly Earnings Report

On October 23, Viking Therapeutics released its latest quarterly earnings, showing an earnings per share (EPS) of ($0.22), which surpassed analysts' expectations of ($0.24) by $0.02. For the same quarter last year, the EPS was ($0.23). Analysts forecast that the company’s EPS for the current year will be around -0.97.

Insider Transactions

In recent insider trading news, Director J. Matthew Singleton sold 10,300 shares on September 20, resulting in a total transaction value of $715,850. After this sale, he still holds 9,500 shares valued at $660,250, marking a 52.02% decrease in his ownership. Additionally, Director Sarah Kathryn Rouan sold 11,000 shares on October 25, with a total transaction value of $889,790. After this, she retains 9,500 shares valued at $768,455, indicating a 53.66% decrease in her position. Over the last ninety days, insiders sold 371,117 shares worth $27,140,009, and currently, insiders own 4.70% of the stock.

Institutional Investor Activity

Several hedge funds have made recent moves regarding their shares of VKTX. Oak Ridge Investments LLC bought a new stake valued at approximately $837,000 in the third quarter. Oppenheimer & Co. Inc. increased its holdings by 43.5%, now owning 102,324 shares valued at $6,478,000 after purchasing 31,011 additional shares. Nvwm LLC acquired a new position valued at $999,000, while Chartwell Investment Partners LLC boosted its holdings by 88.0%, now holding 36,666 shares worth $2,322,000. Finally, Stifel Financial Corp raised its stake by 92.1%, now controlling 131,348 shares with a value of $8,316,000. Collectively, hedge funds and institutional investors own 76.03% of Viking Therapeutics stock.

About Viking Therapeutics

Viking Therapeutics, Inc. is a clinical-stage biopharmaceutical company focused on creating innovative treatments for metabolic and endocrine disorders. The lead drug candidate is VK2809, an orally administered selective agonist of the thyroid hormone receptor beta (TRß), which is currently in Phase IIb clinical trials aimed at treating patients with biopsy-confirmed non-alcoholic steatohepatitis and non-alcoholic fatty liver disease (NAFLD).

Viking, Therapeutics, Stocks