Ultragenyx Pharmaceutical (NASDAQ: RARE) has seen its price target significantly reduced by analysts at Robert W. Baird, who have cut it from $72.00 to $47.00. This adjustment, noted in a research report issued on Tuesday, maintains an “outperform” rating on the biopharmaceutical company’s stock. The new price target suggests a potential upside of 108.94% based on the stock’s previous closing price.
Several other investment firms have also revised their price targets for Ultragenyx. Barclays lowered its target from $81.00 to $50.00, maintaining an “overweight” rating. In a report on November 24, Wells Fargo & Company reduced its price objective from $65.00 to $45.00 while keeping an “overweight” rating. TD Cowen adjusted its target from $86.00 to $75.00, designating a “buy” rating in a report on November 5. Similarly, Leerink Partners decreased its price objective from $80.00 to $70.00, also affirming an “outperform” rating.
Despite the adjustments, sentiment regarding Ultragenyx remains varied among analysts. Currently, fifteen research analysts have rated the stock as a Buy, with one rating it as a Hold and another as a Sell. As reported by MarketBeat.com, the consensus rating is classified as a “Moderate Buy,” with a consensus target price of $75.19.
Recent Earnings Report and Market Reactions
Ultragenyx released its latest earnings results on November 4, reporting a loss of ($1.81) earnings per share (EPS) for the quarter. This figure fell short of analysts’ expectations, which had predicted a loss of ($1.23) per share by $0.58. The company recorded revenues of $159.93 million, missing the anticipated $167.42 million. Compared to the same quarter the previous year, revenue increased by 14.6%.
The disappointing earnings report contributed to a sharp decline in Ultragenyx’s stock value, leading to a trading halt due to heavy volume. Following these developments, the company has indicated a need for “significant” cutbacks in operations, which may lead to reduced expenses but could also delay other ongoing programs.
Insider Activity and Institutional Holdings
In other news, Howard Horn, the company’s Chief Financial Officer, sold 7,942 shares on October 13, at an average price of $31.51, totaling approximately $250,252.42. Following this transaction, Horn now holds 98,227 shares valued at around $3,095,132.77. This sale reflects a 7.48% decrease in his ownership of the stock. The transaction has been disclosed in a filing with the Securities and Exchange Commission (SEC).
Recent changes in institutional holdings show significant activity. Parallel Advisors LLC increased its stake in Ultragenyx by 1,061.9% during the second quarter, now owning 732 shares worth $27,000. Assetmark Inc. also boosted its holdings by 1,706.7% in the third quarter, acquiring an additional 1,024 shares to reach 1,084 shares valued at $33,000. Several other hedge funds have made similar adjustments, with institutional investors now owning approximately 97.67% of the company’s stock.
Analysts remain divided on Ultragenyx’s future, with some retaining positive ratings amid the recent price cuts. Notably, Jefferies maintained a “Buy” rating while reducing its target from $114 to $63. In contrast, negative sentiment stems from the company’s recent Phase 3 trial failures, which have been cited as a direct cause for the stock’s decline.
About Ultragenyx Pharmaceutical
Founded in 2010 and headquartered in Novato, California, Ultragenyx Pharmaceutical Inc. focuses on developing therapies for rare and ultra-rare genetic disorders. The company leverages a precision medicine model to advance its product pipeline, which includes commercial offerings such as Crysvita, Mepsevii, and Dojolvi, targeting unmet medical needs.
As the market navigates these developments, Ultragenyx’s strategies and financial health will continue to attract scrutiny from investors and analysts alike.
