Clovis Oncology (CLVS) Downgraded by Zacks Investment Research to Sell

Zacks Investment Research downgraded shares of Clovis Oncology (NASDAQ:CLVS) from a hold rating to a sell rating in a research note published on Tuesday morning, Zacks.com reports.

According to Zacks, “Sales of the company’s sole marketed drug Rubraca recovered in the fourth quarter of 2018 on the back of awareness programs. However, the drug faced challenges in its adoption, which may continue going forward. Moreover, Rubraca faces strong competition from other PARP inhibitors in the market, Lynparza and Zejula. Meanwhile, several studies on Rubraca, targeting different types of ovarian cancer patients, are currently underway. Successful development is likely to bolster the prospect of the drug. The company is actively working on expanding the label of Rubraca as monotherapy or combination therapy in and beyond ovarian cancer. Clovis’ shares have underperformed the industry in the past six months. Clovis’ shares have outperformed the industry so far this year. Loss estimates have been stable ahead of the company’s Q1 earnings release. The company has a dismal record of earnings surprises in the recent quarters.”

A number of other analysts have also commented on CLVS. HC Wainwright assumed coverage on Clovis Oncology in a research report on Wednesday, February 13th. They issued a buy rating and a $40.00 price objective for the company. ValuEngine lowered Clovis Oncology from a hold rating to a sell rating in a research report on Wednesday, January 2nd. JPMorgan Chase & Co. reiterated a hold rating and issued a $27.00 price objective on shares of Clovis Oncology in a research report on Wednesday, February 27th. BidaskClub upgraded Clovis Oncology from a sell rating to a hold rating in a research report on Friday, March 1st. Finally, Piper Jaffray Companies lifted their price objective on Clovis Oncology to $23.00 and gave the stock a neutral rating in a research report on Wednesday, February 27th. Two research analysts have rated the stock with a sell rating, five have assigned a hold rating and eight have assigned a buy rating to the company’s stock. The stock has an average rating of Hold and an average price target of $43.44.

Shares of NASDAQ CLVS opened at $21.21 on Tuesday. The firm has a market cap of $1.09 billion, a price-to-earnings ratio of -3.00 and a beta of 2.07. Clovis Oncology has a 52-week low of $11.50 and a 52-week high of $55.15. The company has a debt-to-equity ratio of 3.93, a current ratio of 4.55 and a quick ratio of 4.34.

Clovis Oncology (NASDAQ:CLVS) last released its quarterly earnings results on Tuesday, February 26th. The biopharmaceutical company reported ($1.88) earnings per share (EPS) for the quarter, missing the Zacks’ consensus estimate of ($1.68) by ($0.20). Clovis Oncology had a negative net margin of 385.80% and a negative return on equity of 147.39%. The business had revenue of $30.40 million during the quarter, compared to the consensus estimate of $30.46 million. During the same period in the prior year, the firm earned ($1.04) earnings per share. The business’s quarterly revenue was up 78.4% compared to the same quarter last year. As a group, sell-side analysts predict that Clovis Oncology will post -7.06 earnings per share for the current year.

In related news, insider Lindsey Rolfe sold 1,729 shares of the stock in a transaction on Wednesday, March 20th. The stock was sold at an average price of $26.13, for a total value of $45,178.77. Following the sale, the insider now owns 20,953 shares in the company, valued at approximately $547,501.89. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, Director James C. Blair sold 17,056 shares of the stock in a transaction on Thursday, March 14th. The shares were sold at an average price of $27.79, for a total value of $473,986.24. Following the completion of the sale, the director now owns 13,439 shares in the company, valued at approximately $373,469.81. The disclosure for this sale can be found here. In the last quarter, insiders have sold 20,782 shares of company stock worth $576,755. Company insiders own 10.20% of the company’s stock.

Institutional investors and hedge funds have recently bought and sold shares of the stock. Great West Life Assurance Co. Can grew its holdings in shares of Clovis Oncology by 54.8% during the 4th quarter. Great West Life Assurance Co. Can now owns 7,034 shares of the biopharmaceutical company’s stock worth $122,000 after purchasing an additional 2,489 shares in the last quarter. Pacer Advisors Inc. acquired a new stake in shares of Clovis Oncology during the 3rd quarter worth $226,000. Virtu Financial LLC acquired a new stake in shares of Clovis Oncology during the 1st quarter worth $215,000. Two Sigma Securities LLC acquired a new stake in shares of Clovis Oncology during the 4th quarter worth $212,000. Finally, Marshall Wace LLP acquired a new stake in shares of Clovis Oncology during the 3rd quarter worth $423,000.

About Clovis Oncology

Clovis Oncology, Inc, a biopharmaceutical company, focuses on acquiring, developing, and commercializing anti-cancer agents in the United States, Europe, and internationally. Its commercial product includes Rubraca (rucaparib) tablet, a small molecule poly ADP-ribose polymerase inhibitor, used as monotherapy for the treatment of patients with deleterious BRCA mutation associated advanced ovarian cancer, who have been treated with two or more chemotherapies, and selected for therapy by an FDA-approved companion diagnostic for Rubraca.

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