Weiss Ratings Maintains Sell Rating for Sarepta Therapeutics Shares

Weiss Ratings has reaffirmed its sell rating of D- for shares of Sarepta Therapeutics (NASDAQ: SRPT), as outlined in a report released on Tuesday. The biopharmaceutical company, which specializes in treatments for rare diseases, has faced a mixed response from analysts recently, reflecting varying outlooks on its market performance.

Several analysts have weighed in on Sarepta’s stock. On August 20, 2023, Bank of America increased its target price for Sarepta shares to $17.00, maintaining an “underperform” rating. Conversely, Wells Fargo & Company raised its target price from $48.00 to $50.00 with an “overweight” rating on August 7, 2023. That same day, The Goldman Sachs Group also adjusted its target price to $19.00, assigning a “neutral” rating.

Further ratings were issued by HC Wainwright, which reiterated a “sell” rating on August 25, 2023, while William Blair provided an “outperform” rating on July 29, 2023. Overall, analysts have given Sarepta eight buy ratings, fourteen hold ratings, and seven sell ratings. According to MarketBeat.com, the stock holds an average rating of “hold” with a consensus target price of $34.42.

Sarepta Therapeutics recently released its earnings results on August 6, 2023, reporting earnings per share of $2.02 for the quarter, significantly surpassing the consensus estimate of $0.89 by $1.13. The company’s revenue for the quarter reached $611.09 million, exceeding analysts’ expectations of $530.66 million, and showcasing a substantial year-over-year growth of 68.4%.

Despite these positive financial indicators, Sarepta reported a negative net margin of 2.34% and a negative return on equity of 1.03%. Analysts forecast that the company will achieve an earnings per share of $2.67 for the current fiscal year.

Institutional Investor Activity

Recent activity from institutional investors indicates a surge in interest in Sarepta. CWM LLC increased its holdings in the company by 4,033.3% during the third quarter, now owning 72,705 shares valued at approximately $1.4 million after acquiring an additional 70,946 shares. Similarly, Generali Investments CEE investicni spolecnost a.s. boosted its stake by 17.4%, amassing 123,649 shares valued at around $2.38 million.

Other notable increases included GAMMA Investing LLC, which raised its holdings by 285.6%, and Corient Private Wealth LLC, which increased its stake by 73.8%, both during the second quarter. Thrivent Financial for Lutherans also raised its holdings by 3.3% in the same period. In total, institutional investors and hedge funds own approximately 86.68% of Sarepta’s stock.

About Sarepta Therapeutics

Founded as a commercial-stage biopharmaceutical company, Sarepta Therapeutics, Inc. focuses on developing RNA-targeted therapeutics, gene therapies, and other genetic modalities aimed at treating rare diseases. Its product offerings include EXONDYS 51, VYONDYS 53, AMONDYS 45, and ELEVIDYS, each designed to address specific mutations in the dystrophin gene associated with Duchenne muscular dystrophy.

As Sarepta continues to navigate its market position, the interplay between analyst ratings and institutional investments will be pivotal in shaping its trajectory moving forward.