Nuvalent (NASDAQ:NUVL) Shares Gap Down on Disappointing Earnings

Nuvalent, Inc. (NASDAQ:NUVL)’s stock price gapped down before the market opened on Wednesday following a weaker than expected earnings announcement. The stock had previously closed at $58.81, but opened at $57.58. Nuvalent shares last traded at $57.99, with a volume of 14,391 shares traded.

The company reported ($0.59) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($0.58) by ($0.01).

Analyst Upgrades and Downgrades

Several analysts have recently commented on the stock. Leerink Partnrs reissued a “market perform” rating on shares of Nuvalent in a research note on Tuesday, August 8th. BMO Capital Markets boosted their target price on Nuvalent from $73.00 to $79.00 and gave the stock an “outperform” rating in a research report on Thursday, October 19th. Wedbush reiterated an “outperform” rating and issued a $74.00 price target on shares of Nuvalent in a report on Tuesday. Guggenheim began coverage on Nuvalent in a report on Monday, July 24th. They set a “buy” rating and a $56.00 price objective for the company. Finally, SVB Leerink assumed coverage on shares of Nuvalent in a research report on Tuesday, August 8th. They set a “market perform” rating and a $42.00 price target for the company. Three research analysts have rated the stock with a hold rating and five have assigned a buy rating to the stock. Based on data from MarketBeat, Nuvalent presently has a consensus rating of “Moderate Buy” and an average price target of $60.86.

Insiders Place Their Bets

In other news, insider Darlene Noci sold 3,000 shares of the business’s stock in a transaction on Wednesday, November 1st. The shares were sold at an average price of $52.66, for a total value of $157,980.00. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. In other news, Director Matthew Shair sold 91,700 shares of the company’s stock in a transaction that occurred on Tuesday, October 24th. The shares were sold at an average price of $50.70, for a total value of $4,649,190.00. Following the completion of the transaction, the director now owns 1,852,998 shares in the company, valued at $93,946,998.60. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Darlene Noci sold 3,000 shares of the stock in a transaction on Wednesday, November 1st. The stock was sold at an average price of $52.66, for a total transaction of $157,980.00. The disclosure for this sale can be found here. Over the last three months, insiders have sold 110,695 shares of company stock worth $5,611,820. Company insiders own 14.77% of the company’s stock.

Hedge Funds Weigh In On Nuvalent

Institutional investors and hedge funds have recently added to or reduced their stakes in the stock. Vanguard Group Inc. lifted its holdings in shares of Nuvalent by 115.6% in the first quarter. Vanguard Group Inc. now owns 1,637,507 shares of the company’s stock valued at $22,745,000 after purchasing an additional 877,835 shares in the last quarter. Price T Rowe Associates Inc. MD acquired a new position in Nuvalent during the 4th quarter worth approximately $15,953,000. Wellington Management Group LLP grew its stake in shares of Nuvalent by 31.3% during the 1st quarter. Wellington Management Group LLP now owns 1,886,676 shares of the company’s stock worth $49,223,000 after acquiring an additional 450,287 shares in the last quarter. Avoro Capital Advisors LLC raised its holdings in shares of Nuvalent by 21.4% in the first quarter. Avoro Capital Advisors LLC now owns 1,888,888 shares of the company’s stock valued at $49,281,000 after purchasing an additional 333,333 shares during the last quarter. Finally, ArrowMark Colorado Holdings LLC bought a new stake in shares of Nuvalent in the fourth quarter worth $9,650,000. 97.26% of the stock is owned by institutional investors and hedge funds.

Nuvalent Stock Down 0.8 %

The firm has a market cap of $3.33 billion, a price-to-earnings ratio of -31.79 and a beta of 1.32. The company’s fifty day moving average is $51.83 and its 200 day moving average is $45.85.

About Nuvalent

Nuvalent, Inc, a clinical stage biopharmaceutical company, engages in the development of therapies for patients with cancer. Its lead product candidates are NVL-520, a brain-penetrant ROS1-selective inhibitor to inhibit ROS1 fusions that express the normal ROS1 kinase domain without any drug-resistant mutations and remain active in the presence of mutations conferring resistance to approved and investigational ROS1 inhibitors, which is under Phase I development; NVL-655, a brain-penetrant ALK-selective inhibitor, to address the clinical challenges of emergent treatment resistance, central nervous system-related adverse events, and brain metastases that might limit the use of first-, second-, and third-generation ALK inhibitors that is under Phase ½ clinical trial; and NVL-330, a brain-penetrant human epidermal growth factor receptor 2 (HER2)-selective inhibitor designed to treat tumors driven by HER2ex20, brain metastases, and avoiding treatment-limiting adverse events including due to off-target inhibition of wild-type EGFR, which is ongoing IND-enabling studies.