Viking Therapeutics (NASDAQ:VKTX) Shares Gap Down – What’s Next?

Shares of Viking Therapeutics, Inc. (NASDAQ:VKTX) gapped down before the market opened on Thursday. The stock had previously closed at $41.65, but opened at $36.03. Viking Therapeutics shares last traded at $35.9730, with a volume of 7,913,688 shares.

Trending Headlines about Viking Therapeutics

Here are the key news stories impacting Viking Therapeutics this week:

• Positive Sentiment: VK2735 data supports the obesity-drug opportunity. Recent updates indicate that weight loss from Viking’s candidate may persist after treatment, an important potential differentiator as the company advances its weight-loss programs into late-stage trials. Viking Therapeutics Soared After Its Latest GLP-1 Data
• Positive Sentiment: Additional funding improves financial flexibility. Viking priced an upsized $500 million financing consisting of 7.86 million common shares sold at $35 each and $225 million of 2.00% convertible senior notes due 2032. The proceeds should help fund clinical development and corporate operations without an immediate need for another raise. Viking Therapeutics Prices Upsized $500 Million Offering
• Neutral Sentiment: Analyst sentiment remains generally constructive but mixed. Leerink Partners maintained a Buy rating, while Goldman Sachs maintained a Hold rating. The broader analyst consensus is reported as Moderate Buy, suggesting optimism about Viking’s pipeline but continued valuation and execution concerns. Leerink Partners Sticks to Their Buy Rating
• Neutral Sentiment: Trading activity has been unusually high. Heavy share volume and a sharp increase in call-option activity show elevated investor interest, but these indicators reflect positioning and volatility rather than a clear change in Viking’s fundamentals. Viking Therapeutics Sees Strong Trading Volume
• Negative Sentiment: The equity offering creates dilution and was priced at a substantial discount. The common stock was issued at $35, below the prior market price, and the convertible notes could create additional dilution if converted. The upsized raise therefore pressured the shares despite the company’s promising drug data. Why Is Viking Therapeutics Stock Trading Down Thursday?
• Negative Sentiment: Investors remain focused on execution risk. Viking is still a clinical-stage biotechnology company with no established commercial revenue, meaning its valuation depends heavily on successful trials, regulatory approval and eventual competition with Eli Lilly and Novo Nordisk.

Analysts Set New Price Targets

Several brokerages have recently commented on VKTX. JPMorgan Chase & Co. reduced their price objective on Viking Therapeutics from $75.00 to $65.00 and set an “overweight” rating on the stock in a research report on Tuesday, August 11th. Wall Street Zen upgraded Viking Therapeutics from a “strong sell” rating to a “sell” rating in a research report on Saturday. Morgan Stanley reaffirmed an “overweight” rating on shares of Viking Therapeutics in a research note on Tuesday. HC Wainwright reiterated a “buy” rating on shares of Viking Therapeutics in a research report on Tuesday. Finally, Truist Financial lifted their price target on shares of Viking Therapeutics from $83.00 to $87.00 and gave the stock a “buy” rating in a research note on Wednesday. One investment analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average target price of $99.67.

Viking Therapeutics Stock Down 3.2%

The company has a fifty day moving average price of $33.83 and a 200 day moving average price of $33.58. The stock has a market cap of $4.15 billion, a PE ratio of -7.63 and a beta of 0.69.

Viking Therapeutics (NASDAQ:VKTX) last issued its earnings results on Wednesday, July 29th. The biotechnology company reported ($1.10) earnings per share for the quarter, beating the consensus estimate of ($1.21) by $0.11. During the same period in the previous year, the firm earned ($0.58) EPS. The company’s quarterly revenue was up .0% compared to the same quarter last year. As a group, research analysts predict that Viking Therapeutics, Inc. will post -4.47 earnings per share for the current year.

Insider Activity

In other news, COO Marianna Mancini sold 18,217 shares of the stock in a transaction that occurred on Wednesday, July 29th. The stock was sold at an average price of $33.47, for a total transaction of $609,722.99. Following the completion of the sale, the chief operating officer owned 422,760 shares of the company’s stock, valued at approximately $14,149,777.20. This represents a 4.13% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Greg Zante sold 21,217 shares of the firm’s stock in a transaction that occurred on Wednesday, July 29th. The stock was sold at an average price of $33.47, for a total transaction of $710,132.99. Following the completion of the transaction, the chief financial officer owned 212,204 shares in the company, valued at $7,102,467.88. This represents a 9.09% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last 90 days, insiders sold 187,951 shares of company stock valued at $6,268,442. 5.30% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Viking Therapeutics

Hedge funds and other institutional investors have recently modified their holdings of the company. BlackRock Inc. bought a new stake in shares of Viking Therapeutics in the second quarter worth about $241,458,000. BNP Paribas Financial Markets raised its position in Viking Therapeutics by 536.3% during the 4th quarter. BNP Paribas Financial Markets now owns 992,695 shares of the biotechnology company’s stock valued at $34,923,000 after purchasing an additional 836,686 shares during the last quarter. ADAR1 Capital Management LLC purchased a new stake in Viking Therapeutics in the 2nd quarter worth approximately $22,393,000. Artia Global Partners LP lifted its holdings in Viking Therapeutics by 392.1% in the 4th quarter. Artia Global Partners LP now owns 719,365 shares of the biotechnology company’s stock worth $25,307,000 after buying an additional 573,186 shares during the period. Finally, Connor Clark & Lunn Investment Management Ltd. bought a new stake in shares of Viking Therapeutics in the 2nd quarter worth approximately $20,699,000. 76.03% of the stock is owned by institutional investors.

About Viking Therapeutics

Viking Therapeutics, Inc is a clinical-stage biopharmaceutical company focused on developing therapies for metabolic and endocrine disorders. The company’s research programs target conditions including obesity, nonalcoholic steatohepatitis (NASH), metabolic dysfunction-associated steatohepatitis (MASH), dyslipidemia and other disorders involving hormone regulation and metabolism.

Viking’s lead program is VK2735, an investigational dual agonist of the glucagon-like peptide-1 (GLP-1) and glucose-dependent insulinotropic polypeptide (GIP) receptors being developed in injectable and oral formulations for obesity and related metabolic conditions.