REGENXBIO (NASDAQ:RGNX) Trading Up 7.5% – Here’s What Happened

Shares of REGENXBIO Inc. (NASDAQ:RGNX) traded up 7.5% during mid-day trading on Tuesday . The company traded as high as $8.60 and last traded at $8.6650. Approximately 410,852 shares were traded during trading, a decline of 72% from the average daily volume of 1,443,312 shares. The stock had previously closed at $8.06.

Key Headlines Impacting REGENXBIO

Here are the key news stories impacting REGENXBIO this week:

• Positive Sentiment: Despite the setback, Bank of America reportedly maintained a positive view and urged investors to consider the decline a buying opportunity, suggesting the market reaction may have been excessive if the RGX-121 issues can be resolved. BofA urges buying after FDA hold
• Positive Sentiment: REGENXBIO appointed biotechnology investor Greg Ciongoli as an independent director. The addition may strengthen the board’s investment and governance expertise, although it does not immediately resolve the clinical issue. REGENXBIO appoints Greg Ciongoli
• Positive Sentiment: HC Wainwright and Robert W. Baird both retained bullish ratings, with “buy” and “outperform” recommendations, respectively, even though they reduced their price targets to $21 and $29. These targets remain substantially above recent trading levels. Analyst price-target updates
• Neutral Sentiment: Commentary characterizes the stock as a potentially attractive but risky buy after the Hunter syndrome program setback, highlighting considerable upside if RGX-121 returns to development but substantial execution and regulatory risk. Sell-off creates a risky buy opportunity
• Negative Sentiment: The FDA placed a clinical hold on the RGX-121 trial for MPS II after asymptomatic spine MRI findings were observed in five participants. The hold delays development of REGENXBIO’s key asset and raises uncertainty about safety, timelines and future regulatory requirements. FDA clinical hold on RGX-121
• Negative Sentiment: Clear Street warned that the RGX-121 setback could create a cash risk, because a prolonged hold may increase spending on additional testing while delaying potential commercial revenue. Clear Street warns of cash risk
• Negative Sentiment: Johnson Fistel announced an investigation into possible fiduciary-duty violations by certain officers and directors. The inquiry could add legal and governance pressure, although no wrongdoing has been established. Shareholder investigation

Analysts Set New Price Targets

A number of equities analysts have issued reports on the stock. Morgan Stanley reissued an “overweight” rating and set a $18.00 price target on shares of REGENXBIO in a research report on Friday, August 7th. Zacks Research raised shares of REGENXBIO from a “strong sell” rating to a “hold” rating in a research note on Wednesday, August 12th. Wall Street Zen raised shares of REGENXBIO from a “strong sell” rating to a “hold” rating in a research note on Saturday, August 8th. Leerink Partners increased their price objective on shares of REGENXBIO from $17.00 to $18.00 and gave the company an “outperform” rating in a report on Monday, June 22nd. Finally, HC Wainwright lowered their target price on REGENXBIO from $23.00 to $21.00 and set a “buy” rating on the stock in a report on Tuesday. Nine research analysts have rated the stock with a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $23.27.

REGENXBIO Stock Up 5.3%

The firm has a market cap of $619.17 million, a price-to-earnings ratio of -2.47 and a beta of 0.94. The company’s 50-day moving average price is $11.00 and its 200-day moving average price is $9.21.

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

Insiders Place Their Bets

In related news, insider Steve Pakola sold 36,725 shares of the business’s stock in a transaction dated Wednesday, July 1st. The shares were sold at an average price of $12.86, for a total transaction of $472,283.50. Following the sale, the insider owned 213,009 shares of the company’s stock, valued at approximately $2,739,295.74. The trade was a 14.71% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available at this link. Insiders sold a total of 58,494 shares of company stock worth $718,232 over the last quarter. Corporate insiders own 14.22% of the company’s stock.

Institutional Investors Weigh In On REGENXBIO

A number of hedge funds and other institutional investors have recently modified their holdings of RGNX. BlackRock Inc. purchased a new position in REGENXBIO during the second quarter worth approximately $76,641,000. Vanguard Group Inc. increased its stake in shares of REGENXBIO by 1.1% in the fourth quarter. Vanguard Group Inc. now owns 3,374,140 shares of the biotechnology company’s stock worth $48,588,000 after buying an additional 36,042 shares during the last quarter. State Street Corp raised its stake in REGENXBIO by 15.2% during the fourth quarter. State Street Corp now owns 2,286,736 shares of the biotechnology company’s stock valued at $32,929,000 after buying an additional 301,858 shares in the last quarter. AQR Capital Management LLC lifted its position in shares of REGENXBIO by 5.6% in the 4th quarter. AQR Capital Management LLC now owns 1,361,962 shares of the biotechnology company’s stock worth $19,612,000 after buying an additional 72,307 shares during the last quarter. Finally, Integral Health Asset Management LLC boosted its position in REGENXBIO by 9.1% during the 4th quarter. Integral Health Asset Management LLC now owns 1,200,000 shares of the biotechnology company’s stock valued at $17,280,000 after purchasing an additional 100,000 shares during the period. 88.08% of the stock is currently owned by hedge funds and other 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.