Intellia Therapeutics (NASDAQ: NTLA) faces a significant adjustment in its stock valuation as Wells Fargo & Company has reduced its price target from $17.00 to $12.00. This shift, reported in a research note released on October 30, 2023, comes alongside an “equal weight” rating for the biotechnology firm, which focuses on developing curative therapeutics through genome editing.
Several other financial institutions have also recently reassessed their outlook on Intellia. HC Wainwright set a target price of $18.00, while Barclays decreased its estimate from $24.00 to $14.00 and maintained an “overweight” rating. In contrast, Wall Street Zen upgraded its stance from “sell” to “hold” on September 6, 2023. Weiss Ratings reiterated a “sell (d-)” rating on October 8, 2023, and Oppenheimer established a more optimistic target of $27.00.
Current consensus among analysts shows that twelve have rated Intellia as a “buy,” seven as “hold,” and three as “sell.” According to data from MarketBeat, the average target price across analysts stands at $20.39.
Recent Financial Performance
Intellia Therapeutics released its quarterly earnings report on November 6, 2023, revealing an earnings per share (EPS) of ($0.92). This figure surpassed analyst expectations, which had predicted a loss of ($1.02), marking a positive deviation of $0.10. The company also reported revenue of $13.78 million, slightly below the anticipated $14.12 million, though this represents an impressive 51.6% year-over-year increase.
Despite the revenue growth, Intellia continues to experience substantial financial challenges, reflected in its negative net margin of 774.94% and a return on equity of (56.28%). Analysts expect the company to report an EPS of (5.07) for the current fiscal year.
Insider Activity and Institutional Investment
On the insider trading front, CAO Michael P. Dube sold 1,871 shares on October 1, 2023, at an average price of $17.38, totaling approximately $32,517.98. Following this transaction, Dube retains 55,266 shares valued at around $960,523.08, indicating a 3.27% reduction in his ownership.
Conversely, Director William J. Chase made a notable acquisition of 100,000 shares at an average price of $10.03 per share on August 20, 2023, amounting to $1,003,000.00. This purchase increased his holdings to 134,693 shares, valued at approximately $1,350,970.79, reflecting a substantial 288.24% growth in his position.
Institutional investors remain heavily invested in Intellia Therapeutics, controlling 88.77% of the company’s stock. Recent activity includes CWM LLC increasing its stake by 4.7% during the third quarter, now holding 19,187 shares worth $331,000. Other notable investors, such as Federated Hermes Inc. and Cyndeo Wealth Partners LLC, have also bolstered their positions in the firm.
As the market navigates these developments, Intellia Therapeutics continues to work on its innovative gene-editing therapies, which include treatments for conditions such as transthyretin amyloidosis and hereditary angioedema. The company’s performance in the coming months will be closely monitored by investors and analysts alike as it seeks to stabilize and grow in a challenging financial landscape.
