Zacks Investment Research Lowers Karuna Therapeutics (NASDAQ:KRTX) to Hold


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Zacks Investment Research lowered shares of Karuna Therapeutics (NASDAQ:KRTX) from a buy rating to a hold rating in a report published on Monday morning, Zacks.com reports.

According to Zacks, “Karuna Therapeutics Inc. is a clinical-stage biopharmaceutical company. It is primarily focused on developing novel therapies to address disabling neuropsychiatric conditions characterized by significant unmet medical needs. The company’s product candidate consists of KarXT, for the treatment of acute psychosis in patients with schizophrenia, which are in clinical stage. Karuna Therapeutics Inc. is based in Boston, Massachusetts. “

Other research analysts have also issued reports about the company. BidaskClub raised Karuna Therapeutics from a sell rating to a hold rating in a report on Thursday, December 17th. William Blair reiterated a buy rating on shares of Karuna Therapeutics in a report on Tuesday, January 5th. ValuEngine upgraded shares of Karuna Therapeutics from a hold rating to a buy rating in a research note on Friday, November 20th. Oppenheimer assumed coverage on shares of Karuna Therapeutics in a research note on Thursday, December 17th. They issued a buy rating and a $135.00 price objective on the stock. Finally, Maxim Group started coverage on shares of Karuna Therapeutics in a research report on Thursday, November 19th. They set a buy rating and a $150.00 target price for the company. Two research analysts have rated the stock with a hold rating and eleven have given a buy rating to the company. The company has a consensus rating of Buy and a consensus price target of $129.90.

Shares of KRTX stock opened at $102.70 on Monday. The company has a market cap of $2.75 billion, a P/E ratio of -51.09 and a beta of 2.17. The stock’s 50-day moving average is $101.66 and its 200 day moving average is $90.42. Karuna Therapeutics has a 1-year low of $52.62 and a 1-year high of $123.73.

Karuna Therapeutics (NASDAQ:KRTX) last released its quarterly earnings results on Thursday, November 5th. The company reported ($0.71) earnings per share for the quarter, beating analysts’ consensus estimates of ($0.82) by $0.11. On average, sell-side analysts predict that Karuna Therapeutics will post -2.56 EPS for the current fiscal year.

In other Karuna Therapeutics news, CFO Troy A. Ignelzi sold 9,318 shares of the company’s stock in a transaction on Monday, November 9th. The stock was sold at an average price of $105.48, for a total transaction of $982,862.64. Following the transaction, the chief financial officer now directly owns 5,564 shares in the company, valued at $586,890.72. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through the SEC website. Also, CFO Troy A. Ignelzi sold 564 shares of the firm’s stock in a transaction on Friday, November 6th. The stock was sold at an average price of $108.15, for a total value of $60,996.60. Following the transaction, the chief financial officer now owns 5,564 shares of the company’s stock, valued at $601,746.60. The disclosure for this sale can be found here. Insiders sold a total of 73,596 shares of company stock worth $7,368,674 over the last quarter. 18.10% of the stock is currently owned by company insiders.

A number of institutional investors and hedge funds have recently bought and sold shares of the stock. State Street Corp grew its position in Karuna Therapeutics by 5.0% in the 3rd quarter. State Street Corp now owns 799,636 shares of the company’s stock valued at $61,828,000 after acquiring an additional 38,290 shares in the last quarter. Prospera Financial Services Inc acquired a new position in shares of Karuna Therapeutics in the third quarter valued at approximately $73,000. JPMorgan Chase & Co. increased its stake in Karuna Therapeutics by 12.6% during the 3rd quarter. JPMorgan Chase & Co. now owns 5,889 shares of the company’s stock worth $465,000 after buying an additional 661 shares during the period. BlackRock Inc. lifted its holdings in Karuna Therapeutics by 2.2% during the 3rd quarter. BlackRock Inc. now owns 1,287,558 shares of the company’s stock worth $99,554,000 after buying an additional 27,853 shares in the last quarter. Finally, First Light Asset Management LLC purchased a new position in Karuna Therapeutics in the 3rd quarter valued at approximately $9,912,000. 70.15% of the stock is currently owned by hedge funds and other institutional investors.

About Karuna Therapeutics

Karuna Therapeutics, Inc, a clinical-stage biopharmaceutical company, primarily focuses on developing novel therapies to address disabling neuropsychiatric disorders and pain. Its lead product candidate is KarXT, an oral modulator that has completed Phase II clinical trial for the treatment of acute psychosis in patients with schizophrenia; and in Phase Ib clinical trial for the treatment of central nervous system disorders, such as negative and cognitive symptoms of schizophrenia and psychosis, Alzheimer's, and pain, as well as for the treatment of dementia-related psychosis.

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