Viking Therapeutics (NASDAQ:VKTX) Shares Gap Down – Time to Sell?

Shares of Viking Therapeutics, Inc. (NASDAQ:VKTX) 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 traded.

Key Viking Therapeutics News

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.

Wall Street Analysts Forecast Growth

A number of equities analysts have commented on the company. Zacks Research raised Viking Therapeutics from a “strong sell” rating to a “hold” rating in a report on Tuesday, August 18th. Oppenheimer set a $120.00 price objective on Viking Therapeutics in a research note on Tuesday. Truist Financial increased their target price on shares of Viking Therapeutics from $83.00 to $87.00 and gave the company a “buy” rating in a research report on Wednesday. Canaccord Genuity Group boosted their price target on shares of Viking Therapeutics from $107.00 to $114.00 and gave the stock a “buy” rating in a research report on Thursday, July 30th. Finally, Lake Street Capital began coverage on shares of Viking Therapeutics in a research note on Thursday, May 28th. They set a “buy” rating and a $89.00 price objective for the company. One equities research analyst has rated the stock with a Strong Buy rating, eight have assigned a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the stock. According to data from MarketBeat, Viking Therapeutics presently has a consensus rating of “Moderate Buy” and an average target price of $99.67.

Viking Therapeutics Price Performance

The stock has a market capitalization of $4.13 billion, a price-to-earnings ratio of -7.61 and a beta of 0.69. The business has a fifty day moving average of $33.85 and a 200 day moving average of $33.54.

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, topping the consensus estimate of ($1.21) by $0.11. During the same period last year, the firm posted ($0.58) EPS. Viking Therapeutics’s revenue for the quarter was up .0% compared to the same quarter last year. On average, equities research analysts expect that Viking Therapeutics, Inc. will post -4.47 EPS for the current year.

Insider Activity at Viking Therapeutics

In other Viking Therapeutics news, CEO Brian Lian sold 148,517 shares of the stock in a transaction dated Wednesday, July 29th. The shares were sold at an average price of $33.32, for a total transaction of $4,948,586.44. Following the completion of the transaction, the chief executive officer owned 2,572,441 shares of the company’s stock, valued at $85,713,734.12. This trade represents a 5.46% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, COO Marianna Mancini sold 18,217 shares of Viking Therapeutics stock in a transaction dated Wednesday, July 29th. The shares were sold at an average price of $33.47, for a total transaction of $609,722.99. Following the sale, the chief operating officer owned 422,760 shares of the company’s stock, valued at approximately $14,149,777.20. This represents a 4.13% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. In the last ninety days, insiders have sold 187,951 shares of company stock worth $6,268,442. Company insiders own 5.30% of the company’s stock.

Hedge Funds Weigh In On Viking Therapeutics

Several large investors have recently made changes to their positions in VKTX. Ameritas Advisory Services LLC acquired a new stake in Viking Therapeutics in the 2nd quarter valued at approximately $32,000. Ballast Advisors LLC purchased a new position in shares of Viking Therapeutics during the first quarter worth $33,000. Cassaday & Co Wealth Management LLC acquired a new stake in shares of Viking Therapeutics in the first quarter valued at $50,000. Allworth Financial LP acquired a new stake in shares of Viking Therapeutics in the second quarter valued at $53,000. Finally, Northwestern Mutual Wealth Management Co. acquired a new position in Viking Therapeutics during the 2nd quarter worth about $56,000. 76.03% of the stock is currently owned by institutional investors and hedge funds.

Viking Therapeutics Company Profile

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.