Seattle Genetics, Inc. (NASDAQ:SGEN) was upgraded by Zacks Investment Research from a “hold” rating to a “buy” rating in a research note issued on Tuesday. The firm currently has a $64.00 target price on the biotechnology company’s stock. Zacks Investment Research‘s price objective points to a potential upside of 11.17% from the company’s previous close.
According to Zacks, “Seattle Genetics has upped its guidance for 2017 driven by a robust performance of Adcetris in the first half. We are also encouraged by the company’s efforts to expand the drug’s label. The company’s collaboration with Takeda for the global development and commercialization of Adcetris is encouraging. However, dependence on one product – Adcetris– for growth has its inherent risks.The recent label expansion of Merck’s Keytruda in the lymphoma indication is likely to increase competition. Though the company has multiple candidates in its pipeline, most of them are in early stages of development. The company’s shares have underperformed the industry year to date. Estimates have remained stable ahead of the Q3 earnings results. The company has a mixed record of earnings surprises in recent quarters.”
A number of other research firms have also recently commented on SGEN. Cann reissued a “hold” rating on shares of Seattle Genetics in a research report on Monday, June 19th. Cowen and Company reissued a “hold” rating and set a $54.00 target price (down previously from $61.00) on shares of Seattle Genetics in a research report on Monday, June 19th. Cantor Fitzgerald set a $43.00 target price on shares of Seattle Genetics and gave the company a “hold” rating in a research report on Monday, June 19th. Oppenheimer Holdings, Inc. reaffirmed a “hold” rating on shares of Seattle Genetics in a report on Thursday, June 15th. Finally, J P Morgan Chase & Co reaffirmed a “hold” rating and issued a $58.00 price target on shares of Seattle Genetics in a report on Tuesday, June 13th. Three equities research analysts have rated the stock with a sell rating, twelve have issued a hold rating, eight have assigned a buy rating and one has given a strong buy rating to the stock. Seattle Genetics presently has an average rating of “Hold” and an average target price of $61.00.
Seattle Genetics (NASDAQ:SGEN) last posted its earnings results on Thursday, July 27th. The biotechnology company reported ($0.39) EPS for the quarter, beating the Zacks’ consensus estimate of ($0.42) by $0.03. Seattle Genetics had a negative net margin of 47.38% and a negative return on equity of 32.87%. The company had revenue of $108.20 million during the quarter, compared to analysts’ expectations of $105.92 million. During the same quarter in the prior year, the company posted ($0.23) earnings per share. Seattle Genetics’s revenue for the quarter was up 13.4% compared to the same quarter last year. Equities research analysts expect that Seattle Genetics will post ($1.69) EPS for the current fiscal year.
In related news, CMO Jonathan G. Drachman sold 10,000 shares of the firm’s stock in a transaction on Thursday, August 24th. The shares were sold at an average price of $47.54, for a total transaction of $475,400.00. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. Also, insider Clay B. Siegall sold 10,413 shares of the firm’s stock in a transaction on Monday, August 7th. The stock was sold at an average price of $48.91, for a total transaction of $509,299.83. The disclosure for this sale can be found here. In the last three months, insiders have sold 164,929 shares of company stock valued at $8,342,308. 34.70% of the stock is currently owned by corporate insiders.
A number of hedge funds have recently added to or reduced their stakes in the stock. Vanguard Group Inc. grew its position in Seattle Genetics by 2.3% during the second quarter. Vanguard Group Inc. now owns 7,530,515 shares of the biotechnology company’s stock valued at $389,628,000 after buying an additional 167,828 shares during the period. BlackRock Inc. grew its position in Seattle Genetics by 2.6% during the second quarter. BlackRock Inc. now owns 7,453,483 shares of the biotechnology company’s stock valued at $385,644,000 after buying an additional 185,823 shares during the period. State Street Corp grew its position in Seattle Genetics by 10.9% during the first quarter. State Street Corp now owns 2,845,120 shares of the biotechnology company’s stock valued at $178,847,000 after buying an additional 279,079 shares during the period. Capital International Investors grew its position in Seattle Genetics by 34.3% during the second quarter. Capital International Investors now owns 2,724,589 shares of the biotechnology company’s stock valued at $140,970,000 after buying an additional 695,986 shares during the period. Finally, Matrix Capital Management Company LP grew its position in Seattle Genetics by 18.8% during the second quarter. Matrix Capital Management Company LP now owns 2,118,000 shares of the biotechnology company’s stock valued at $109,585,000 after buying an additional 335,000 shares during the period. Institutional investors own 97.63% of the company’s stock.
Seattle Genetics Company Profile
Seattle Genetics, Inc is a biotechnology company focused on the development and commercialization of therapies for the treatment of cancer. The Company is engaged in the development and sale of pharmaceutical products on its own behalf or in collaboration with others. The Company’s marketed product ADCETRIS, or brentuximab vedotin, is an antibody-drug conjugate (ADC).
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