Rapport Therapeutics (NASDAQ:RAPP) Stock Price Down 7.4% – Here’s What Happened

Rapport Therapeutics, Inc. (NASDAQ:RAPP) shares dropped 7.4% during trading on Wednesday. The company traded as low as $27.82 and last traded at $27.2110. Approximately 121,229 shares traded hands during trading, a decline of 69% from the average session volume of 391,842 shares. The stock had previously closed at $29.37.

Rapport Therapeutics News Roundup

Here are the key news stories impacting Rapport Therapeutics this week:

• Positive Sentiment: Rapport reported that its Phase 2 trial of RAP-219 met both the primary and secondary endpoints. At Week 3, the treatment produced a statistically significant placebo-adjusted 3.1-point improvement in the Young Mania Rating Scale and a 0.4-point improvement in the Clinical Global Impression–Bipolar severity score. Rapport Phase 2 topline results
• Positive Sentiment: The company plans to advance RAP-219 into Phase 3 bipolar-mania trials, reducing some development uncertainty and supporting the potential for a larger commercial opportunity. Rapport plans Phase III trials
• Positive Sentiment: Analysts responded favorably: BTIG raised its price target to $89 from $75, Raymond James increased its target to $86 from $75, and HC Wainwright reaffirmed a Buy rating with a $66 target. Analysts have cited a potential blockbuster opportunity, with estimated peak sales near $1 billion. Raymond James price target increase
• Neutral Sentiment: Investor reaction has been volatile, with unusually heavy trading volume following the data release as the market weighs the clinical results and the transition toward Phase 3. Rapport trading volume
• Negative Sentiment: Some coverage characterized the trial win as modest because RAP-219 fell short of the study’s original ambitions, which may explain profit-taking and the stock’s continued weakness despite positive headline results. Rapport Phase 2 analysis

Analyst Ratings Changes

Several equities research analysts recently weighed in on the stock. HC Wainwright reaffirmed a “buy” rating and issued a $66.00 price objective on shares of Rapport Therapeutics in a report on Tuesday. William Blair initiated coverage on shares of Rapport Therapeutics in a research note on Tuesday, July 28th. They set an “outperform” rating on the stock. BTIG Research boosted their price target on shares of Rapport Therapeutics from $75.00 to $89.00 and gave the stock a “buy” rating in a research report on Tuesday. Guggenheim upped their price target on shares of Rapport Therapeutics from $65.00 to $70.00 and gave the stock a “buy” rating in a research note on Tuesday. Finally, Wolfe Research assumed coverage on shares of Rapport Therapeutics in a research note on Thursday, October 15th. They issued an “outperform” rating and a $50.00 price target for the company. Two research analysts have rated the stock with a Strong Buy rating, twelve have given a Buy rating and one has given a Sell rating to the company. According to MarketBeat.com, the company presently has an average rating of “Buy” and a consensus target price of $67.00.

Rapport Therapeutics Stock Down 10.8%

The company has a 50 day moving average of $40.31 and a two-hundred day moving average of $39.13. The firm has a market cap of $1.26 billion, a P/E ratio of -8.62 and a beta of 1.22.

Rapport Therapeutics (NASDAQ:RAPP) last released its earnings results on Wednesday, August 5th. The company reported ($1.19) earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of ($1.12) by ($0.07). Research analysts expect that Rapport Therapeutics, Inc. will post -4.09 earnings per share for the current fiscal year.

Insider Activity

In other news, CEO Abraham Ceesay sold 28,958 shares of Rapport Therapeutics stock in a transaction that occurred on Tuesday, August 11th. The shares were sold at an average price of $48.01, for a total value of $1,390,273.58. Following the transaction, the chief executive officer owned 486,108 shares of the company’s stock, valued at $23,338,045.08. The trade was a 5.62% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this link. Also, COO Cheryl Gault sold 10,000 shares of the business’s stock in a transaction that occurred on Wednesday, September 30th. The stock was sold at an average price of $33.19, for a total transaction of $331,900.00. Following the completion of the sale, the chief operating officer owned 139,914 shares in the company, valued at $4,643,745.66. The trade was a 6.67% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 97,976 shares of company stock valued at $4,420,349. Insiders own 12.48% of the company’s stock.

Institutional Trading of Rapport Therapeutics

A number of large investors have recently added to or reduced their stakes in RAPP. Engineers Gate Manager LP bought a new position in shares of Rapport Therapeutics in the second quarter valued at $888,000. Wellington Management Group LLP boosted its stake in shares of Rapport Therapeutics by 11.2% during the 2nd quarter. Wellington Management Group LLP now owns 86,988 shares of the company’s stock worth $3,625,000 after acquiring an additional 8,757 shares in the last quarter. Artia Global Partners LP acquired a new position in shares of Rapport Therapeutics in the 2nd quarter worth $5,772,000. Bank of America Corp DE acquired a new position in shares of Rapport Therapeutics in the 2nd quarter worth $3,170,000. Finally, Jupiter Topco LLC acquired a new stake in shares of Rapport Therapeutics during the second quarter worth $574,000.

About Rapport Therapeutics

Rapport Therapeutics, Inc is a clinical-stage biopharmaceutical company focused on developing precision medicines for central nervous system disorders. The company’s approach is designed to selectively target receptor-associated proteins that regulate synaptic receptors, with the goal of improving therapeutic selectivity and reducing the side effects associated with broader-acting neurological medicines.

Rapport’s lead product candidate, RAP-219, is an orally administered small molecule being developed for neurological conditions, including focal epilepsy.