Viking Therapeutics (NASDAQ:VKTX) Shares Gap Down – Should You Sell?

Viking Therapeutics, Inc. (NASDAQ:VKTX) shares 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.

Viking Therapeutics News Roundup

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

• Positive Sentiment: VK2735 maintenance data showed patients retained most of their prior weight loss after switching from weekly injections to less frequent dosing. The company reported headline retention rates of up to 97% for every-other-week dosing and 90% for monthly dosing, while combined results showed approximately 90% and 85% retention, respectively. The potential for a less frequent maintenance schedule could differentiate VK2735 in the crowded GLP-1 market. Viking’s Obesity Edge May Be Staying Power, Not Weight Loss
• Positive Sentiment: The VK2735 results also showed approximately 16% to 19% weight loss after 21 weeks, with no major new safety concerns highlighted. Investors are now focused on Viking’s ongoing Phase 3 VANQUISH program and planned oral VK2735 development. VKTX Stock Rises on Encouraging Weight-Loss Maintenance Results
• Positive Sentiment: Unusually heavy call-option activity indicates bullish short-term speculation, with investors purchasing 48,911 calls versus average daily volume of about 13,631 contracts.
• Neutral Sentiment: Viking priced an upsized $500 million financing consisting of 7.86 million shares at $35 each and $225 million of 2.00% convertible senior notes due 2032. The proceeds should extend funding for clinical development and manufacturing preparations, reducing near-term financing risk. Viking Therapeutics Prices Upsized $500 Million Offering
• Negative Sentiment: The equity offering is priced below the recent market level and will dilute existing shareholders; the convertible notes could create additional dilution if converted. The financing may therefore limit the stock’s upside despite the favorable clinical news.
• Negative Sentiment: VK2735’s maintenance study was relatively small and lasted only 12 weeks after the initial treatment period. Phase 3 efficacy, long-term durability, regulatory approval and commercialization costs remain significant uncertainties.

Analyst Upgrades and Downgrades

Several equities research analysts have weighed in on the company. Zacks Research upgraded Viking Therapeutics from a “strong sell” rating to a “hold” rating in a report on Tuesday, August 18th. HC Wainwright reaffirmed a “buy” rating on shares of Viking Therapeutics in a research note on Tuesday. Lake Street Capital began coverage on shares of Viking Therapeutics in a report on Thursday, May 28th. They set a “buy” rating and a $89.00 target price on the stock. Canaccord Genuity Group increased their target price on shares of Viking Therapeutics from $107.00 to $114.00 and gave the stock a “buy” rating in a report on Thursday, July 30th. Finally, Weiss Ratings reissued a “sell (d-)” rating on shares of Viking Therapeutics in a research report on Friday, July 17th. One analyst has rated the stock with a Strong Buy rating, eight have given a Buy rating, two have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, Viking Therapeutics currently has a consensus rating of “Moderate Buy” and a consensus price target of $99.67.

Viking Therapeutics Stock Down 14.9%

The stock’s 50 day moving average price is $33.85 and its two-hundred day moving average price is $33.54. The stock has a market cap of $4.13 billion, a price-to-earnings ratio of -7.61 and a beta of 0.69.

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

Insider Transactions at Viking Therapeutics

In other news, COO Marianna Mancini sold 18,217 shares of the company’s stock in a transaction dated Wednesday, July 29th. The stock was sold at an average price of $33.47, for a total value of $609,722.99. Following the sale, the chief operating officer owned 422,760 shares in the company, valued at $14,149,777.20. This represents a 4.13% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. 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 Viking Therapeutics stock in a transaction that occurred on Wednesday, July 29th. The shares were sold at an average price of $33.47, for a total value of $710,132.99. Following the transaction, the chief financial officer owned 212,204 shares of the company’s stock, valued at approximately $7,102,467.88. This represents a 9.09% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders have sold 187,951 shares of company stock worth $6,268,442 over the last quarter. 5.30% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Viking Therapeutics

Several large investors have recently made changes to their positions in VKTX. MCF Advisors LLC boosted its holdings in Viking Therapeutics by 59,900.0% during the second quarter. MCF Advisors LLC now owns 2,400 shares of the biotechnology company’s stock worth $94,000 after buying an additional 2,396 shares in the last quarter. WINTON GROUP Ltd acquired a new position in shares of Viking Therapeutics in the second quarter worth about $3,532,000. Engineers Gate Manager LP purchased a new stake in shares of Viking Therapeutics during the 2nd quarter worth about $1,823,000. RFG Advisory LLC grew its position in shares of Viking Therapeutics by 0.3% during the 2nd quarter. RFG Advisory LLC now owns 142,790 shares of the biotechnology company’s stock valued at $5,570,000 after acquiring an additional 463 shares during the period. Finally, NewEdge Advisors LLC grew its position in shares of Viking Therapeutics by 3.6% during the 2nd quarter. NewEdge Advisors LLC now owns 16,533 shares of the biotechnology company’s stock valued at $645,000 after acquiring an additional 577 shares during the period. 76.03% of the stock is currently owned by institutional investors and hedge funds.

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.