17.01 -0.14 (-0.82%)
After hours: 5:25PM EST
|Bid||17.15 x 3000|
|Ask||17.20 x 800|
|Day's Range||17.07 - 17.76|
|52 Week Range||15.02 - 25.31|
|Beta (3Y Monthly)||1.73|
|PE Ratio (TTM)||8.77|
|Earnings Date||Feb 10, 2020 - Feb 14, 2020|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||24.18|
Michael Morrissey became the CEO of Exelixis, Inc. (NASDAQ:EXEL) in 2010. This analysis aims first to contrast CEO...
Since 1986, Farallon Capital has built a proven record for success, mainly from steady hands at the helm and consistent returns for investors. The firm was founded by Tom Steyer, with $15 million in initial capital, and when he retired as managing director in 2012 Farallon had grown to hold over $20 billion in assets under management.Steyer’s successor, Andrew Spokes, has continued the firm’s strategy of ‘absolute return’ investing, assuming every investment has a guaranteed return. As far as stocks are concerned, this investment strategy tends toward the conservative – but it also tends to ensure a good return.So, it makes sense that Farallon would get rid of underperforming or overly risky stocks. In the last quarter, the firm backed out of three high-profile biotech firms.Let’s dive into the TipRanks database to learn more about the doubts and why Farallon is backing out of these biotechs.Sarepta Therapeutics (SRPT)This Massachusetts-based firm takes a focus on genetic disorders, especially muscular dystrophy. Sarepta has one approved product, Exondys 51, a treatment for Duchenne muscular dystrophy, and approved for patients with a confirmed mutation in the DMD gene. With another 16 projects in the pipeline, Sarepta is well positioned for the future. The company is a collaborator on an additional 9 projects.Biotech is a sector with inherent high overhead, high risk, and long lead times to profitability, so Sarepta, like many biotechs focused on clinical phase research, operates at loss. In Q3, the company’s EPS loss increased by 103% year-over-year, to $1.14, even though revenues, at $99 million, showed a 26% yoy gain. The quarterly report noted increased expenditures as the root cause of the increased earnings loss.Interestingly, Farallon divested 500,000 shares – the firm’s entire position in Sarepta. It was a major move by a major fund, that signals a serious lack of confidence in SRPT going forward.At least one Wall Street analyst would agree with Farallon’s position. Hartaj Singh, writing from Oppenheimer, set a Hold on the stock. He wrote, “We believe that with management's focus on early stage gene therapy trials, investor sentiment is slowly shifting to a more skeptical stance on other projects." The analyst added, "While management's (and the Street's) focus has been on the development pipeline, namely SRP-9001, we have highlighted the role a golodirsen CRL could have on the P&L in the medium term. Updates on regulatory actions remain a potential catalyst for 2019, but we keep vigilant on the progress of commercial supply development for SRP-9001. Feasibility of these outlined timelines could be put to the test in 2020." (To watch Singh's track record, click here)Other analysts might have to seriously disagree with Singh. The Street considers Sarepta stock a Strong Buy. According to TipRanks analytics, out of 13 analysts, 12 are bullish, while only one is sidelined. The consensus price target stands at $184.91, showing a 73% upside from the current share price. (See Sarepta stock analysis on TipRanks)Exelixis (EXEL)Located in Alameda, not far from Silicon Valley, Exelixis develops medications for the treatment of a variety of cancers. Unlike many small- to mid-cap biotech companies, Exelixis operates at a profit, thanks to three approved medications on the market. Two of the drugs, Cabometyx and Cometriq, are brand names for cabozantinib, used to treat thyroid and renal cancers, while the third, Cotellic, is used for treatment of melanoma.Having several products on the market for common cancers puts EXEL stock in the black. The company has been running a profit and beating earnings expectations since early in 2018. In its most recent quarterly report, EXEL posted an EPS of 31 cents, beating the 20-cent forecast by an impressive 55%. Still, the EPS was down 24% from the year-ago quarter. The drop in year-over-year earnings came even as revenues, at $271.7 million, increased 20% in the same period.The slide in earnings, despite strong revenues, indicate slower sales than expected – and that induced Farallon to shed 42% of its Exelixis holdings. In all, Farallon sold off 1.25 million shares of EXEL in Q3. Farallon still owns more than $28 million worth of EXEL. It will be interesting to see what the fund does with this stock going forward.5-star BMO analyst George Farmer looks at EXEL and says Hold. He notes the company’s profits, but is cautious on sales. He noted, “Weak Cabometyx sales of $187M, well below ours/consensus of $203M/ $198M, were recorded in spite of a 4.5% price increase last July. We believe this result, ostensibly due to a backlog of patients slow to progress, creates a new overhang on shares…” (To watch Farmer's track record, click here)However, it looks like other analysts aren’t ready to tap out just yet. This stock’s Moderate Buy consensus rating is based on 6 Buys and 3 Holds given in the past three months. Shares are priced at $16.80 and have an average price target of $24.78, indicating upside potential of 48%. (See Exelixis stock analysis on TipRanks)Amarin (AMRN)The company’s omega-3 based drug, Vascepa, is available by prescription as a treatment for hypertriglyceridemia, an indicator for heart disease, and has been shown to have a clear beneficial effect in preventing heart attack. Vascepa was approved and put on the market in 2013, and forecasts show it reaching well over $2 billion in sales by 2024. However, the omega-3 niche is starting to fill up, and Vascepa is facing increasing competition.That competition has not impacted Amarin’s profits – yet. The company’s Q3 results showed $112 million in revenues, a 103% year-over-year gain, and the company has $677 million in cash-on-hand. Vascepa prescription were up 9.9% from Q2, to 865,000 orders.Amarin saw its shares surge as high as 50% this month. The boost came on the heels of FDA AdCom vote in favor of extending the label on the company’s flagship drug, Vascepa, to include patients at risk of a heart attack and other major adverse cardiovascular events. The FDA is set to make a final decision on December 28, 2019.Spokes, however, saw risk here, and Farallon’s sale of Amarin shares was its largest biotech divestment. The firm sold off 2,249,400 shares in AMRN in Q3, reducing its holding by 53% to just over 2 million shares.Two Wall Street analysts become more skeptical about Amarin's valuation earlier this month. Joel Beatty of Citigroup, wrote, “We believe Vascepa is an effective drug and anticipate sales accelerating significantly over the next year, however, we believe this is now already priced into the stock.” Beatty downgraded AMRN from Buy to Hold, although his $27 target suggests an upside of 29% for AMRN. (To watch Beatty's track record, click here)Oppenheimer analyst Leland Gershell is even more downbeat on Amarin. He said, in his recent initiation of coverage report, “We believe that a ~12-month stream of late-stage competitor data starting next month will increasingly weigh on shares as these products, which we believe offer superior profiles, are factored into models.” Gershell’s price target, $7, implies a strong 66% downside here. (To watch Gershell's track record, click here)Overall, Amarin still gets a Moderate Buy from the analyst consensus, with 7 Buys, 2 Holds, and 1 Sell set in recent weeks. The stock has a $27.50 average stock-price forecast, indicating a 35% upside from the $20.42 trading price. (See Amarin stock analysis on TipRanks)
– Approval based on statistically significant and clinically meaningful overall survival benefit demonstrated in the CELESTIAL phase 3 pivotal trial –
-- Results being presented today in a late-breaking presentation (abstract TH-PO1201) at Kidney Week 2019, the annual meeting of the American Society of Nephrology in Washington, D.C. Exelixis, Inc. (EXEL) announced today that its partner Daiichi Sankyo Company, Limited (“Daiichi Sankyo”) has reported positive results from a phase 3 pivotal trial of esaxerenone, a product of the companies’ prior research collaboration, in patients with diabetic nephropathy. Esaxerenone is a novel mineralocorticoid receptor (MR) blocker identified during the prior research collaboration between Exelixis and Daiichi Sankyo and subsequently developed and commercialized by Daiichi Sankyo.
Exelixis (EXEL) delivered earnings and revenue surprises of 55.00% and 18.97%, respectively, for the quarter ended September 2019. Do the numbers hold clues to what lies ahead for the stock?
- Total Revenue of $271.7 Million, Cabozantinib Franchise Revenue of $191.8 Million - - GAAP Diluted EPS of $0.31, Non-GAAP Diluted EPS of $0.34 - - Conference Call and Webcast Tod
In this article we are going to estimate the intrinsic value of Exelixis, Inc. (NASDAQ:EXEL) by taking the foreast...
"Since 2006, value stocks (IVE vs IVW) have underperformed 11 of the 13 calendar years and when they beat growth, it wasn't by much. Cumulatively, through this week, it has been a 122% differential (up 52% for value vs up 174% for growth). This appears to be the longest and most severe drought for value […]
Exelixis (EXEL) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Individuals invest in the stock market for a variety of reasons. New investors often buy growth stocks in the hopes of massive gains. Many will turn to known names such as Tesla (NASDAQ:TSLA) or Netflix (NASDAQ:NFLX). However, investors may open this position only after stocks like this have become well-known. By then, the significant gains have already occurred in most cases.To see outsized returns, investors have to buy before the companies become frequently discussed in the media. This typically involves looking for unknown or lesser-known growth stocks making gains while escaping the notice of the financial press. * 7 Beverage Stocks to Buy Now Fortunately, numerous stocks have benefitted from substantial growth over the last few years. Moreover, Wall Street expects these increases to continue for a long time to come. These seven under-the-radar stocks to buy have both a track record of growth and the ability to deliver outsized returns for years.InvestorPlace - Stock Market News, Stock Advice & Trading Tips Abiomed (ABMD)Source: Pavel Kapysh / Shutterstock.com Abiomed (NASDAQ:ABMD) makes medical devices that improve circulatory functions, including artificial hearts. The company came into existence in 1981 to implant the first artificial heart. However, most of their work focuses on improving the function of existing organs.ABMD stock has traded since 1987. However, the equity did not begin to trade like other growth stocks until 2014. ABMD sold in the $25 per share range in the fall of 2014. From there, it began a steady increase and spiked to almost $460 per share about a year ago. However, profit growth has stagnated as analysts predict only 0.8% for this year. As a result, Abiomed has since fallen back, and it trades at just over $160 per share today.Still, with the stock having lost 65% of its value, investors should consider ABMD when it finally stops falling. As things stand now, its forward price-to-earnings (PE) ratio has fallen to 33.55.Moreover, analysts forecast profit growth, which had averaged 63.91% per year over the last five years, to soon see massive growth again. Wall Street predicts 24% average annual earnings increases for the next five years. Once this begins to appear in the results, ABMD may resume its climb back to its all-time high, and maybe beyond. Exelixis (EXEL)Source: Shutterstock Exelixis (NASDAQ:EXEL) develops medicines used in the treatment of cancer. In the world of oncology treatment, most know them best for Cometriq, their drug to treat thyroid cancer.EXEL hit a high of just over $30 per share in early 2018. Since then, it has seen more downs than ups as profit levels have pulled back. Wall Street forecasts an earnings decline of 58.8% for the year. Profits decreased as revenues from the company's collaboration agreements fell. At the same time, expenses for research, personnel, marketing, and taxes increased. Today, EXEL stock trades at about $16 per share.However, that drop in profits, along with a downtrend, may soon create a buying opportunity. It now trades at just 14.5 times forward earnings. And this year's lower profit looks like an anomaly. Profits grew by an average of 86.64% per year over the last five years. While the next five years will not quite match that level, analysts still expect annual earnings growth to average 46% per year over the next five years. * 10 Tech Stocks to Buy Now for 2025 As the population ages, and the company develops new treatments, rising revenues and profits should help EXEL maintain its place among growth stocks. Five Below (FIVE)Source: Jonathan Weiss / Shutterstock.com Five Below (NASDAQ:FIVE) operates as a different kind of ultra-discounter than a Dollar Tree (NASDAQ:DLTR) or a Dollar General (NYSE:DG). As the name implies, Five Below sells its products for $5 or less. Unlike other counterparts, it also caters specifically to children and teens.FIVE stock traded as low as $28 per share in late 2015. Since then, it has risen steadily, peaking at $148.22 per share in April of this year. FIVE saw a pullback over the summer but still trades above $125 per share.Still, that looks like a healthy pullback as the equity trades at around 34.1 times forward earnings. Moreover, profit growth seems to make that valuation justifiable. Analysts expect earnings to grow by an average of 20.4% per year over the next five years.Furthermore, compared to other ultra-discounters, the company is just getting started. Five Below operates over 850 stores in 33 states. Despite its large footprint, it remains much smaller than other ultra-discounters. Dollar Tree and Dollar General each operate more than 15,000 stores across the country.The youth demographic may not support 15,000 stores. However, this implies FIVE stock can still benefit from expansion to areas not yet served and add more stores in states where it currently operates. This and a moderate PE ratio should deliver returns to longer-term investors over time. Parsley Energy (PE)Source: Shutterstock Parsley Energy (NYSE:PE) operates as an independent exploration and production (E&P) company. Although headquartered in Austin, it deals in properties in the Permian Basin of West Texas and southeastern New Mexico. At the end of 2018, the company reported 499 million barrels of proven reserves and production that averaged 109,000 barrels per day.The E&P sector remains volatile, and most equities in this sector tend not to remain growth stocks. However, PE stock has typically maintained its earnings increases through the ups and downs.Admittedly, at the current price of close to $17 per share, it trades well off of the late 2016 peak of just under $40 per share. However, twice over the last year, it has bounced after hitting the $14 per share level. This strongly indicates a limited downside to PE stock.Moreover, the profit picture also looks favorable, considering the industry in which it operates. Like most E&P firms, it reported a net loss in 2016. Despite that hiccup, earnings grew by an average of 48.73% per year over the last five years. Analysts forecast the next five years will show an average profit growth rate of 38.7% per year. Despite massive profit increases, the forward PE ratio stands at about 8. PE stock also trades below its book value. * 7 Funds to Buy If the Market Turns Sour Given the growth available at a low valuation, investors may have an excellent reason to take a chance on an otherwise risky E&P stock. Planet Fitness (PLNT)Source: Ken Wolter / Shutterstock.com With over 1,800 locations spread across all 50 states and four foreign countries, most Americans have likely driven by a Planet Fitness (NYSE:PLNT) location. Admittedly, investors do not typically think of fitness centers when looking for growth stocks. However, this company has quietly turned its industry on its head. In a world where gym memberships easily cost $40 per month or more, Planet Fitness offers memberships between $10 and $22.99 per month.Both customers and investors have reacted positively to this business model. PLNT stock, which traded below $20 per share as late as 2017, rose as high as $81.90 per share by the summer of 2019. It has since fallen to a level of around $58 per share.However, this pullback may offer a buying opportunity. The forward PE ratio now stands at around 31. Furthermore, analysts expect earnings growth to average 25.3% per year over the next five years. With a market cap of around $5.4 billion, and growth outside the U.S. beginning to take off, both the company and PLNT stock still should have significant room for growth. Pinnacle Financial Partners (PNFP)Source: Shutterstock Pinnacle Financial (NASDAQ:PNFP) is the parent company of Pinnacle Bank, a Nashville-based regional bank operating in the Southeast. This financial institution, which started in 2000 in Nashville, has gradually spread to 114 locations in four southeastern states. It has also become the number one bank for deposits in the Nashville area.Like most banks, the 2008 financial crisis hit PNFP stock hard. However, since 2010, Pinnacle Financial has made itself one of the better-performing growth stocks. It has risen from just below $9 per share to almost $70 per share since early 2017. The stock has struggled since then, declining to a low of just over $43 per share last December. Since that time, it has resumed its move higher and trades at about $56 per share.Wall Street forecasts profit growth of 11.2% this year and just 1.7% in fiscal 2020. However, for the next five years, they expect average annual earnings increases of 32.2%. With a forward PE ratio of around 10.5, it appears the PNFP stock price does not yet factor in this future growth. * 10 Tech Stocks to Buy Now for 2025 Pinnacle looks poised to continue its expansion across the Southeast. With a focus on development, a low multiple, and massive profit growth expected, PNFP stock appears positioned to profit investors in the coming years. XPO Logistics (XPO)Source: via XPO Logistics (Modified) XPO Logistics (NYSE:XPO) has become one of the largest logistics firms in the world. The Greenwich, Connecticut-based company employs around 100,000 people. It serves about 50,000 customers in 32 different countries. The company began in 1989, and it has grown to its current size largely through acquisitions.Growth stocks like XPO have benefitted from tremendous earnings increases over the last ten years, due in large part to e-commerce. Trading at just over $3 per share in 2009, it rose as high as $116.27 per share by September 2018. From there, it saw a massive decline, falling to as low as $45.73 per share in March. However, since that time, it has seen a steady recovery. XPO stock sells for about $73 per share as of the time of this writing.Despite the rebound, it remains a reasonably-priced equity. XPO stock supports a forward PE ratio of around 16.5. This seems like a low multiple considering that analysts forecast a 19.7% earnings increase this year. Over the next five years, they estimate average annual profit growth of 25.9%.This means investors still can profit from XPO stock. Despite the growth, the market cap is only about $6.8 billion. With e-commerce still in a growth mode, XPO Logistics stock should keep on trucking for the foreseeable future.As of this writing, Will Healy did not hold a position in any of the aforementioned stocks. You can follow Will on Twitter at @HealyWriting. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Beverage Stocks to Buy Now * 10 Groundbreaking Technologies Created by Universities * 5 Semiconductor Stocks Worth Your Time The post 7 Under-The-Radar Growth Stocks That Could Benefit New Investors appeared first on InvestorPlace.
Calithera (CALA) completes patient enrollment in a phase II study evaluating a combination regimen of its lead candidate, telaglenastat, in patients with advanced kidney cancer.
Seattle Genetics (SGEN) and Astellas' enfortumab vedotin in combination with Merck's Keytruda proves safety in a phase I study as a first-line treatment for advanced bladder cancer. Shares up.
Pfizer (PFE)/Merck KGaA's label expansion application for Bavencio in combination with Inlyta gets positive CHMP recommendation for first-line treatment of advanced kidney cancer.