Arvinas (NASDAQ:ARVN) Shares Gap Up – Should You Buy?

Arvinas, Inc. (NASDAQ:ARVN) shares gapped up prior to trading on Tuesday . The stock had previously closed at $11.04, but opened at $12.90. Arvinas shares last traded at $13.0250, with a volume of 5,228,623 shares traded.

Analyst Ratings Changes

A number of research analysts have weighed in on the stock. Barclays boosted their target price on shares of Arvinas from $15.00 to $16.00 and gave the stock an “overweight” rating in a research report on Thursday, November 6th. Weiss Ratings reissued a “sell (e+)” rating on shares of Arvinas in a research report on Wednesday, October 8th. BTIG Research raised their target price on Arvinas from $10.00 to $14.00 and gave the company a “buy” rating in a report on Thursday, October 30th. Wedbush reaffirmed a “neutral” rating and issued a $9.00 price target on shares of Arvinas in a research report on Thursday, November 6th. Finally, HC Wainwright cut their price target on Arvinas from $24.00 to $18.00 and set a “buy” rating for the company in a report on Thursday, August 7th. Eleven analysts have rated the stock with a Buy rating, ten have issued a Hold rating and two have given a Sell rating to the company’s stock. According to MarketBeat, the stock has a consensus rating of “Hold” and an average price target of $16.39.

Arvinas Trading Up 20.9%

The stock has a market cap of $857.27 million, a P/E ratio of -16.71 and a beta of 2.38. The company’s fifty day simple moving average is $9.18 and its 200-day simple moving average is $7.98.

Arvinas (NASDAQ:ARVN) last issued its earnings results on Wednesday, November 5th. The company reported ($0.48) earnings per share for the quarter, beating the consensus estimate of ($0.75) by $0.27. The business had revenue of $41.90 million for the quarter, compared to analyst estimates of $29.36 million. Arvinas had a negative net margin of 18.73% and a negative return on equity of 9.77%. The firm’s revenue was down 59.1% on a year-over-year basis. During the same period in the previous year, the business earned ($0.68) EPS. As a group, analysts expect that Arvinas, Inc. will post -3.81 earnings per share for the current fiscal year.

Arvinas announced that its board has authorized a share repurchase plan on Wednesday, September 17th that authorizes the company to buyback $100.00 million in outstanding shares. This buyback authorization authorizes the company to purchase up to 17.9% of its shares through open market purchases. Shares buyback plans are typically a sign that the company’s management believes its shares are undervalued.

Insider Activity

In related news, Director Briggs Morrison bought 30,000 shares of the business’s stock in a transaction that occurred on Monday, September 22nd. The stock was acquired at an average price of $7.57 per share, for a total transaction of $227,100.00. Following the transaction, the director directly owned 76,021 shares of the company’s stock, valued at $575,478.97. This represents a 65.19% increase in their ownership of the stock. The purchase was disclosed in a legal filing with the SEC, which is available through the SEC website. Insiders own 4.73% of the company’s stock.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of the stock. Vanguard Group Inc. boosted its stake in shares of Arvinas by 18.4% in the 1st quarter. Vanguard Group Inc. now owns 8,362,200 shares of the company’s stock valued at $58,703,000 after purchasing an additional 1,299,639 shares in the last quarter. Alyeska Investment Group L.P. bought a new position in Arvinas during the 1st quarter valued at about $12,636,000. TCG Crossover Management LLC acquired a new position in Arvinas in the third quarter valued at about $13,780,000. Geode Capital Management LLC grew its stake in Arvinas by 3.1% during the second quarter. Geode Capital Management LLC now owns 1,585,092 shares of the company’s stock worth $11,668,000 after buying an additional 48,296 shares during the last quarter. Finally, Qube Research & Technologies Ltd grew its stake in Arvinas by 154.8% during the third quarter. Qube Research & Technologies Ltd now owns 1,486,864 shares of the company’s stock worth $12,668,000 after buying an additional 903,337 shares during the last quarter. 95.19% of the stock is currently owned by institutional investors and hedge funds.

About Arvinas

Arvinas, Inc, a clinical-stage biotechnology company, engages in the discovery, development, and commercialization of therapies to degrade disease-causing proteins. The company engineers proteolysis targeting chimeras (PROTAC) targeted protein degraders that are designed to harness the body’s own natural protein disposal system to degrade and remove disease-causing proteins.