REGENXBIO (NASDAQ:RGNX) Shares Gap Down – What’s Next?

REGENXBIO Inc. (NASDAQ:RGNX) gapped down prior to trading on Monday . The stock had previously closed at $10.72, but opened at $8.29. REGENXBIO shares last traded at $8.18, with a volume of 960,606 shares traded.

More REGENXBIO News

Here are the key news stories impacting REGENXBIO this week:

• Positive Sentiment: Analysts remain bullish despite lower targets. HC Wainwright reduced its price target to $21 from $23 while maintaining a “buy” rating, and Robert W. Baird cut its target to $29 from $32 while retaining an “outperform” rating. Both targets imply substantial potential upside from recent trading levels. Analyst price target updates
• Positive Sentiment: REGENXBIO added biotechnology investor Greg Ciongoli as an independent director. The company said the appointment strengthens its board and adds industry and investment experience. REGENXBIO appoints Greg Ciongoli to board
• Neutral Sentiment: Reported short-interest data shows no measurable short position. The August 25 report lists short interest at zero shares and a zero-day short-interest ratio, but the reported “increase” is mathematically invalid because both comparison figures are zero. The data therefore provides little useful trading information.
• Negative Sentiment: The FDA placed a clinical hold on RGX-121, REGENXBIO’s investigational treatment for Hunter syndrome. Spinal MRI scans identified asymptomatic abnormalities, described as nodules or masses, in five trial participants. The hold delays development of the company’s leading program and was the primary catalyst for the recent selloff. FDA places clinical hold on RGX-121
• Negative Sentiment: Shareholder litigation scrutiny has increased. Johnson Fistel is investigating potential fiduciary-duty claims involving company officers and directors, including whether long-term shareholders may recover losses following the clinical setback. Although the investigation is not an established finding of wrongdoing, it adds legal and reputational risk. Johnson Fistel investigation

Analyst Upgrades and Downgrades

Several brokerages have issued reports on RGNX. Morgan Stanley reissued an “overweight” rating and issued a $18.00 price target on shares of REGENXBIO in a research note on Friday, August 7th. Bank of America dropped their price target on shares of REGENXBIO from $25.00 to $14.00 and set a “buy” rating on the stock in a research report on Friday, May 15th. Robert W. Baird cut their price objective on shares of REGENXBIO from $32.00 to $29.00 and set an “outperform” rating on the stock in a report on Tuesday. Barclays downgraded REGENXBIO from an “overweight” rating to a “hold” rating in a research note on Friday, August 7th. Finally, Wall Street Zen raised shares of REGENXBIO from a “strong sell” rating to a “hold” rating in a report on Saturday, August 8th. Nine investment analysts have rated the stock with a Buy rating, three have issued a Hold rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $23.27.

REGENXBIO Price Performance

The firm’s 50 day moving average is $10.97 and its 200 day moving average is $9.21. The company has a market cap of $588.15 million, a PE ratio of -2.35 and a beta of 0.94.

REGENXBIO (NASDAQ:RGNX) last issued its quarterly earnings data on Thursday, August 6th. The biotechnology company reported $0.43 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.08 by $0.35. The company had revenue of $108.02 million for the quarter, compared to the consensus estimate of $97.63 million. REGENXBIO had a negative return on equity of 220.07% and a negative net margin of 112.58%. As a group, analysts anticipate that REGENXBIO Inc. will post -3.91 EPS for the current year.

Insider Activity at REGENXBIO

In other news, insider Steve Pakola sold 36,725 shares of the stock in a transaction on Wednesday, July 1st. The shares were sold at an average price of $12.86, for a total value of $472,283.50. Following the transaction, the insider owned 213,009 shares of the company’s stock, valued at $2,739,295.74. This represents a 14.71% decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Over the last 90 days, insiders have sold 58,494 shares of company stock valued at $718,232. 14.22% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On REGENXBIO

Institutional investors have recently modified their holdings of the company. BlackRock Inc. bought a new position in REGENXBIO during the second quarter valued at approximately $76,641,000. AQR Capital Management LLC increased its stake in shares of REGENXBIO by 2,247.7% during the first quarter. AQR Capital Management LLC now owns 620,595 shares of the biotechnology company’s stock valued at $4,437,000 after buying an additional 594,161 shares during the period. Bank of America Corp DE bought a new position in REGENXBIO in the 2nd quarter worth $6,212,000. State Street Corp raised its stake in REGENXBIO by 15.2% in the fourth quarter. State Street Corp now owns 2,286,736 shares of the biotechnology company’s stock worth $32,929,000 after buying an additional 301,858 shares in the last quarter. Finally, Y Intercept Hong Kong Ltd bought a new position in shares of REGENXBIO in the 1st quarter worth approximately $2,305,000. 88.08% of the stock is currently owned by institutional investors.

About REGENXBIO

REGENXBIO Inc is a clinical‐stage biotechnology company specializing in the development of gene therapies using its proprietary NAV® AAV (adeno‐associated virus) platform. The company engineers next‐generation AAV vectors designed to deliver functional genes to targeted cells, aiming to address a range of rare genetic diseases and ocular, metabolic and neurologic disorders. REGENXBIO’s pipeline features several product candidates in various stages of preclinical and clinical development, including RGX-314 for wet age‐related macular degeneration, RGX-121 for mucopolysaccharidosis II (Hunter syndrome) and RGX-121 for other rare lysosomal storage diseases.

In addition to its internally funded programs, REGENXBIO has established partnerships with major biopharmaceutical companies to advance its NAV technology.