Investors Surge into Call Options for Roivant Sciences, Driving Volume Up 672%
Stock traders significantly increased their activity in Roivant Sciences Ltd. (NASDAQ: ROIV) on Tuesday, purchasing a remarkable 22,740 call options. This figure represents an astonishing increase of approximately 672% compared to the usual daily volume of 2,947 call options. The surge indicates heightened investor interest in the biopharmaceutical company, which specializes in developing medicines for inflammation and immunology.
On Thursday, Roivant Sciences shares opened at $13.77. The company, which boasts a market capitalization of $9.40 billion, recorded a price-to-earnings (P/E) ratio of -19.67 and a beta of 1.15. Over the past year, the stock has fluctuated between a low of $8.73 and a high of $13.82. Currently, the fifty-day simple moving average stands at $11.73, while the 200-day simple moving average is at $11.08.
Analysts React with Positive Ratings
Recent analyst reports reflect a positive outlook for Roivant Sciences. On September 2, Citigroup initiated coverage with a “buy” rating and set a price target of $16.00. Following this, on June 18, HC Wainwright reaffirmed a “buy” rating with a price target of $18.00. The Goldman Sachs Group further enhanced its stance on July 10 by upgrading Roivant to a “strong-buy” rating and establishing a price target of $19.00. Currently, MarketBeat indicates that two analysts have rated the stock as a Strong Buy, while another two have given it a Buy rating, leading to a consensus rating of “Strong Buy” and a target price of $17.67.
Insider Transactions and Institutional Investments
In other developments, CEO Eric Venker sold 100,000 shares of the company on August 20 at an average price of $11.72, amounting to a total sale of $1,172,000. Following the transaction, Venker retains 1,653,585 shares, valued at approximately $19.38 million, reflecting a 5.70% decrease in his holdings. This transaction was reported to the Securities and Exchange Commission (SEC).
Another significant insider, major shareholder Vivek Ramaswamy, sold 385,816 shares on September 5 at an average price of $12.96, totaling $5,000,175.36. After this sale, Ramaswamy directly holds 35,508,359 shares, valued at around $460.19 million, which is a 1.07% decrease in his position. Over the last ninety days, insiders have sold a total of 3,218,022 shares worth $39.01 million. Company insiders collectively own 10.80% of Roivant Sciences.
Several institutional investors have also been active in the stock. Perceptive Advisors LLC acquired a new position during the second quarter, investing $37.55 million. Additionally, Nuveen LLC invested $31.99 million during the first quarter, while Orbimed Advisors LLC added $31.32 million in the second quarter. Rubric Capital Management LP increased its holdings by 14.7% in the same period, now owning 20,370,336 shares valued at $229.57 million. Furthermore, Squarepoint Ops LLC grew its holdings by an impressive 2,580.0%, now possessing 2,211,675 shares worth $24.93 million. Overall, institutional investors control approximately 64.76% of Roivant Sciences’ stock.
Roivant Sciences Ltd. continues to generate significant interest from both retail and institutional investors as it advances its mission in the biopharmaceutical sector. The company’s innovative approach to developing medicines and technologies positions it well for future growth.
