Viking Therapeutics (NASDAQ: VKTX) has been upgraded to a “strong-buy” rating by BTIG Research, as detailed in a report published on Thursday. This positive evaluation reflects growing confidence in the company’s potential, particularly within the context of its clinical-stage biopharmaceutical efforts. Other analysts have also recently revised their ratings on Viking’s stock, further indicating a favorable outlook.
Canaccord Genuity Group raised its price target for Viking Therapeutics from $106.00 to $107.00, maintaining a “buy” rating in a note released on November 12, 2023. Similarly, Zacks Research upgraded Viking from a “strong sell” to a “hold” rating on February 18, 2024. In contrast, Weiss Ratings reaffirmed a “sell (d-)” rating on January 21, 2024, while Morgan Stanley reiterated an “overweight” rating, setting a price objective of $99.00 on February 12, 2024.
Currently, the consensus among research analysts is mixed but generally optimistic. Four analysts have categorized the stock as a strong buy, five have given it a buy rating, three have assigned a hold rating, and one has issued a sell rating. According to data from MarketBeat.com, Viking Therapeutics has an average rating of “moderate buy” with a consensus price target of $87.80.
Quarterly Earnings Report and Insider Transactions
On February 11, 2024, Viking Therapeutics released its quarterly earnings report, revealing a loss of ($1.38) earnings per share (EPS), which fell short of analysts’ expectations that estimated a loss of ($0.89) per share. This marks a significant decline compared to the same quarter the previous year when the reported loss was ($0.32) per share. Analysts are forecasting that Viking Therapeutics will post an EPS of (1.56) for the current year.
In recent insider trading activity, Director Matthew W. Foehr sold 16,000 shares of the company on January 2, 2024, at an average price of $35.11, totaling $561,760.00. Following this transaction, Foehr retained 132,036 shares valued at approximately $4,635,783.96. This sale represented a 10.81% decrease in his ownership.
Additionally, Chief Financial Officer Greg Zante sold 57,661 shares on January 5, 2024, at an average price of $32.90, amounting to $1,897,046.90. Post-sale, Zante holds 189,891 shares valued at $6,247,413.90, reflecting a 23.29% reduction in his ownership. Over the past three months, insiders have sold a total of 364,731 shares worth $12,053,627, with corporate insiders owning 4.10% of the stock.
Institutional Interest in Viking Therapeutics
The institutional trading landscape for Viking Therapeutics has also seen activity recently. Royal Bank of Canada increased its holdings by 13.0% in the first quarter, acquiring an additional 39,886 shares to reach a total of 347,716 shares valued at $8,396,000. Integrated Wealth Concepts LLC initiated a new stake in the company, valued at approximately $230,000.
UBS AM, a distinct business unit of UBS Asset Management Americas LLC, raised its position in Viking by 1.4%, now owning 470,028 shares valued at $11,351,000 after adding 6,696 shares. The State of New Jersey Common Pension Fund D also increased its holdings by 2.5%, acquiring an additional 1,671 shares to total 67,921 shares valued at $1,800,000. Meanwhile, Wealthfront Advisers LLC lifted its position by 14.7%, acquiring 1,289 shares, bringing its total to 10,048 shares valued at $266,000.
Currently, hedge funds and institutional investors collectively own approximately 76.03% of Viking Therapeutics, reflecting a strong institutional interest in the company’s future prospects.
Viking Therapeutics, headquartered in San Diego, California, is dedicated to developing novel therapies for metabolic and endocrine disorders. The company’s pipeline includes promising candidates such as VK2809, aimed at reducing liver fat in non-alcoholic steatohepatitis (NASH) patients, and VK5211, which targets muscle wasting conditions. As the company continues to navigate the competitive biotechnology landscape, investor confidence appears to be on the rise, bolstered by recent upgrades and institutional interest.
