Traders Surge into Sarepta Therapeutics with High Call Options Volume

Sarepta Therapeutics, Inc. (NASDAQ:SRPT) experienced a significant spike in call options trading on the stock market on November 3, 2023. Investors purchased a total of 22,262 call options, marking a 14% increase from the average daily volume of 19,557 call options. This surge indicates heightened interest from traders in the biotechnology firm, which is engaged in the development of gene therapies for rare diseases.

Recent shifts in institutional investment further underscore this growing interest. Notably, Ancora Advisors LLC increased its holdings in Sarepta by 150% during the first quarter, now owning 500 shares valued at approximately $32,000. Other institutions, such as Byrne Asset Management LLC and Banque Transatlantique SA, have also entered positions, with stakes valued at $33,000 and $44,000, respectively. Overall, institutional investors own 86.68% of Sarepta’s stock.

Analysts Adjust Price Targets for Sarepta

As the trading landscape evolves, several analysts have revised their price targets for Sarepta Therapeutics. Leerink Partners raised its price objective from $12.00 to $15.00, maintaining a “market perform” rating. Meanwhile, Mizuho reiterated a “neutral” rating, adjusting its target down from $40.00 to $14.00. On the other hand, Barclays upgraded the stock from an “underweight” to an “equal weight” rating, setting a target of $22.00.

In another significant move, Royal Bank of Canada raised its target from $14.00 to $16.00, while Wells Fargo & Company elevated its price target from $48.00 to $50.00, giving Sarepta an “overweight” rating. Currently, seven analysts have assigned a Buy rating, fifteen recommend holding, and seven suggest selling, resulting in an overall consensus rating of “Hold” with an average target price of $33.67.

Sarepta’s Stock Performance and Financial Overview

Sarepta Therapeutics’ stock saw a notable decline of 32.4% during midday trading, falling $7.92 to $16.53. The day witnessed the exchange of 18,141,795 shares, significantly surpassing the average volume of 6,298,489 shares. The company boasts a market capitalization of $1.62 billion, with a price-to-earnings (P/E) ratio of -19.03 and a beta of 0.51. Over the past year, its stock has fluctuated between a low of $10.41 and a high of $138.81.

Sarepta’s latest quarterly earnings report revealed a loss of ($0.13) earnings per share (EPS), falling short of the consensus estimate of $0.02 by $0.15. The company reported revenue of $399.36 million, exceeding analyst expectations of $331.51 million. Compared to the same period last year, quarterly revenue declined by 14.5%, with the previous year reporting an EPS of $0.62. Analysts predict an average EPS of 2.67 for the current year.

Sarepta Therapeutics specializes in RNA-targeted therapeutics and gene therapies aimed at treating rare diseases, notably Duchenne Muscular Dystrophy. Its offerings include EXONDYS 51, VYONDYS 53, AMONDYS 45, and ELEVIDYS, each targeting specific genetic mutations associated with the disease. As the company continues to navigate the complexities of the biopharmaceutical landscape, its recent trading activity and institutional interest suggest a pivotal moment for Sarepta Therapeutics and its stakeholders.