Viking Therapeutics (NASDAQ:VKTX) Reaches New 1-Year Low - Time to Sell?

Viking Therapeutics, Inc. (NASDAQ:VKTX) has recently hit a new 52-week low during trading sessions, reaching a low of $23.27 before closing at $23.84, with a total trading volume of 751,035 shares. The previous closing price was $25.65.

Analyst Ratings and Predictions

Multiple research analysts have expressed their views on Viking Therapeutics. HC Wainwright reaffirmed a "buy" rating and set a target price of $102.00 for the company's shares. Scotiabank also initiated coverage, labeling the stock as "sector outperform" with the same target of $102.00. Meanwhile, Maxim Group lowered their target from $120.00 to $70.00 while maintaining a "buy" rating. B. Riley also kept a "buy" rating, reducing their price target from $109.00 to $96.00. In contrast, Raymond James raised their target price from $122.00 to $125.00, giving the stock a "strong-buy" rating. Among analysts, there is a mix of ratings with one indicating a sell, one a hold, ten a buy, and one a strong buy. Data from MarketBeat reflects an average rating of "Moderate Buy" with an average price target of $95.18.

Company Performance Overview

Viking Therapeutics has a market capitalization of $2.68 billion, with a price-to-earnings ratio of -23.94 and a beta of 0.90. The stock's 50-day simple moving average is noted at $30.29 while the 200-day simple moving average stands at $46.50. The most recent earnings report disclosed on February 5th showed a loss of ($0.32) per share, missing analysts' expectations of ($0.27) by five cents. For context, the same quarter in the prior year showed a loss of ($0.25) per share. Expectations for Viking Therapeutics suggest an average earnings projection of -$1.56 per share for the current year.

Insider Transactions

Recent activities disclosed include sales by company insiders. COO Marianna Mancini sold 54,215 shares at an average price of $42.75, totaling approximately $2.32 million, reducing her stake by 12.66%. CFO Greg Zante sold 50,309 shares at the same price, amounting to about $2.15 million, which decreased his ownership by 23.34%. Over the past three months, insiders have sold 299,014 shares worth nearly $12.8 million, where insiders currently control about 4.70% of the company's stock.

Institutional Investor Activity

Viking Therapeutics has seen considerable institutional interest. Norges Bank acquired a new position worth $51.46 million in the fourth quarter. Massachusetts Financial Services significantly increased their holdings by 446.7%, owning 1,357,241 shares, valued at $54.62 million after acquiring an additional 1,108,972 shares. Ameriprise Financial also boosted its stake by 228.5% to 1,479,596 shares valued at $59.54 million. Other firms including Raymond James and Man Group have also shown increased activity in their positions in Viking Therapeutics. Collectively, institutional investors own about 76.03% of the company's shares.

About Viking Therapeutics

Viking Therapeutics is a clinical-stage biopharmaceutical company focused on developing innovative therapies targeting metabolic and endocrine disorders. The company's lead candidate, VK2809, is an orally administered selective agonist of the thyroid hormone receptor beta (TRß) and is currently undergoing Phase IIb clinical trials aimed at treating non-alcoholic steatohepatitis (NASH) confirmed by biopsy, as well as non-alcoholic fatty liver disease (NAFLD).

Conclusion

As Viking Therapeutics faces a new 1-year low, investors may question whether it's time to sell or hold. While some analysts maintain strong ratings and positive target prices, recent underperformance and insider selling might raise concerns. Investors are encouraged to carefully consider their financial situation and seek professional advice if necessary.

Viking, Therapeutics, Stocks