XOMA Royalty (NASDAQ:XOMA) Shares Gap Up – Time to Buy?

Shares of XOMA Royalty Corporation (NASDAQ:XOMA) gapped up before the market opened on Monday . The stock had previously closed at $37.90, but opened at $41.22. XOMA Royalty shares last traded at $42.1120, with a volume of 140,485 shares trading hands.

Key Stories Impacting XOMA Royalty

Here are the key news stories impacting XOMA Royalty this week:

• Positive Sentiment: Ligand announced a definitive agreement to acquire XOMA for $39.00/share in an all?cash transaction (~$739M), which expands Ligand’s royalty portfolio and is expected to be accretive to Ligand’s EPS. Ligand to Acquire XOMA Royalty
• Positive Sentiment: Insider activity and institutional flows show support: CEO Owen Hughes recently purchased 100,000 shares and several large funds increased positions, signaling insider and institutional conviction around the deal/valuation. $XOMA stock is up 9% today
• Neutral Sentiment: Trading was halted briefly ahead of the announcement and the name has seen elevated volume as the market reprices the company around the transaction and any attached contingent value rights. Xoma Royalty Shares Edge Up Premarket
• Negative Sentiment: Multiple shareholder?rights law firms have launched investigations into whether XOMA’s board secured a fair price, creating legal/transactional uncertainty that could delay closing or alter outcomes for shareholders. ALERT: Rowley Law PLLC is Investigating Proposed Acquisition of XOMA Royalty Corporation
• Negative Sentiment: Analyst/firm reactions are mixed: Lucid Capital Markets downgraded XOMA from “strong?buy” to “hold,” and a Zacks note flagged that recent upward moves occurred on heavy volume but that earnings?estimate revision trends don’t clearly support sustained strength. XOMA Royalty (XOMA) Moves 10.7% Higher

Wall Street Analysts Forecast Growth

A number of brokerages recently issued reports on XOMA. TD Cowen upgraded shares of XOMA Royalty to a “hold” rating in a report on Friday, February 13th. Lucid Cap Mkts lowered shares of XOMA Royalty from a “strong-buy” rating to a “hold” rating in a report on Monday. Zacks Research upgraded shares of XOMA Royalty from a “strong sell” rating to a “hold” rating in a research report on Wednesday, April 8th. HC Wainwright restated a “buy” rating and issued a $97.00 price objective on shares of XOMA Royalty in a report on Friday, March 20th. Finally, Leerink Partners restated an “outperform” rating on shares of XOMA Royalty in a research report on Tuesday, February 24th. Three investment analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. According to data from MarketBeat.com, XOMA Royalty has a consensus rating of “Hold” and an average target price of $68.25.

XOMA Royalty Price Performance

The stock has a market capitalization of $487.05 million, a P/E ratio of 27.99 and a beta of 0.68. The business has a fifty day simple moving average of $31.44 and a 200-day simple moving average of $30.10. The company has a debt-to-equity ratio of 1.15, a quick ratio of 3.37 and a current ratio of 3.37.

XOMA Royalty (NASDAQ:XOMA) last posted its quarterly earnings results on Wednesday, March 18th. The biotechnology company reported $0.12 earnings per share for the quarter, beating the consensus estimate of ($0.04) by $0.16. XOMA Royalty had a net margin of 45.75% and a return on equity of 10.32%. The firm had revenue of $13.76 million during the quarter, compared to the consensus estimate of $11.13 million. Sell-side analysts expect that XOMA Royalty Corporation will post 0.94 earnings per share for the current fiscal year.

Institutional Investors Weigh In On XOMA Royalty

Several hedge funds and other institutional investors have recently modified their holdings of the company. Rhumbline Advisers lifted its holdings in shares of XOMA Royalty by 18.0% in the 2nd quarter. Rhumbline Advisers now owns 13,249 shares of the biotechnology company’s stock worth $334,000 after purchasing an additional 2,019 shares in the last quarter. Citadel Advisors LLC bought a new stake in XOMA Royalty during the 3rd quarter valued at $292,000. Wells Fargo & Company MN lifted its stake in shares of XOMA Royalty by 66.0% in the fourth quarter. Wells Fargo & Company MN now owns 10,755 shares of the biotechnology company’s stock valued at $286,000 after buying an additional 4,278 shares in the last quarter. Man Group plc bought a new stake in shares of XOMA Royalty during the third quarter worth about $247,000. Finally, Squarepoint Ops LLC acquired a new position in XOMA Royalty during the 4th quarter valued at about $237,000. Institutional investors own 95.92% of the company’s stock.

XOMA Royalty Company Profile

XOMA Royalty (NASDAQ: XOMA) is a specialty healthcare royalty company that acquires and manages royalty interests in small-molecule and biologic drugs. The company’s business model centers on purchasing royalty streams on marketed or near-market pharmaceutical products, providing capital to developers in exchange for a share of future net sales. By focusing on late-stage assets with established clinical and commercial profiles, XOMA Royalty aims to generate predictable, long-term cash flows for its shareholders.

The company’s investment portfolio spans a range of therapeutic areas, including oncology, immunology and rare diseases.