Relay Therapeutics (NASDAQ:RLAY) Shares Gap Up on Strong Earnings

Posted by Defense World Staff on Feb 25th, 2023

Relay Therapeutics, Inc. (NASDAQ:RLAY – Get Rating) gapped up prior to trading on Friday following a better than expected earnings announcement. The stock had previously closed at $17.43, but opened at $19.54. Relay Therapeutics shares last traded at $18.35, with a volume of 97,635 shares changing hands.

The company reported ($0.56) earnings per share (EPS) for the quarter, topping the consensus estimate of ($0.68) by $0.12. The company had revenue of $0.25 million during the quarter, compared to analyst estimates of $0.18 million. Relay Therapeutics had a negative net margin of 17,136.40% and a negative return on equity of 21.42%. The firm’s quarterly revenue was down 55.4% compared to the same quarter last year. During the same period in the prior year, the firm posted $0.36 EPS.

Wall Street Analyst Weigh In

Several research firms recently issued reports on RLAY. JMP Securities reduced their target price on shares of Relay Therapeutics from $38.00 to $28.00 and set a “market outperform” rating for the company in a report on Thursday, January 19th. Oppenheimer began coverage on shares of Relay Therapeutics in a report on Thursday, February 2nd. They set an “outperform” rating and a $33.00 price objective for the company. Finally, HC Wainwright cut their price objective on shares of Relay Therapeutics from $50.00 to $43.00 and set a “buy” rating for the company in a report on Monday, November 7th. One analyst has rated the stock with a sell rating, one has assigned a hold rating and five have given a buy rating to the stock. According to MarketBeat.com, Relay Therapeutics has a consensus rating of “Moderate Buy” and a consensus target price of $31.71.

Insider Buying and Selling at Relay Therapeutics

In other news, insider Brian Adams sold 9,994 shares of the stock in a transaction that occurred on Thursday, January 12th. The stock was sold at an average price of $20.00, for a total transaction of $199,880.00. Following the completion of the transaction, the insider now directly owns 51,531 shares in the company, valued at approximately $1,030,620. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. In other news, CEO Sanjiv Patel sold 14,000 shares of the stock in a transaction that occurred on Wednesday, February 8th. The stock was sold at an average price of $20.98, for a total transaction of $293,720.00. The transaction was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Brian Adams sold 9,994 shares of the stock in a transaction that occurred on Thursday, January 12th. The shares were sold at an average price of $20.00, for a total value of $199,880.00. Following the transaction, the insider now owns 51,531 shares of the company’s stock, valued at $1,030,620. The disclosure for this sale can be found here. Insiders sold a total of 55,023 shares of company stock valued at $1,133,190 in the last three months. 4.43% of the stock is currently owned by corporate insiders.

Institutional Inflows and Outflows

A number of hedge funds and other institutional investors have recently modified their holdings of the company. Third Point LLC bought a new stake in Relay Therapeutics in the third quarter worth $2,237,000. Rafferty Asset Management LLC lifted its position in Relay Therapeutics by 6.9% in the second quarter. Rafferty Asset Management LLC now owns 182,098 shares of the company’s stock worth $3,050,000 after buying an additional 11,824 shares during the last quarter. HBK Investments L P bought a new stake in Relay Therapeutics in the third quarter worth $336,000. Virtus ETF Advisers LLC lifted its position in Relay Therapeutics by 34.5% in the second quarter. Virtus ETF Advisers LLC now owns 7,476 shares of the company’s stock worth $125,000 after buying an additional 1,918 shares during the last quarter. Finally, Monarch Partners Asset Management LLC bought a new stake in Relay Therapeutics in the third quarter worth $952,000.

Relay Therapeutics Price Performance

The company has a market capitalization of $2.06 billion, a P/E ratio of -6.41 and a beta of 1.24. The business has a 50-day moving average of $18.27 and a 200-day moving average of $20.21.

Relay Therapeutics Company Profile

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Relay Therapeutics, Inc operates as a clinical-stage precision medicines company. It engages in transforming the drug discovery process with an initial focus on enhancing small molecule therapeutic discovery in targeted oncology and genetic disease indications. The company's lead product candidates include RLY-4008, an oral small molecule inhibitor of fibroblast growth factor receptor 2 (FGFR2), which is in a first-in-human clinical trial for patients with advanced or metastatic FGFR2-altered solid tumors; RLY-2608, a lead mutant-PI3Ka inhibitor program that targets phosphoinostide 3 kinase alpha; and RLY-1971, an oral small molecule inhibitor of protein tyrosine phosphatase Src homology region 2 domain-containing phosphatase-2 that is in Phase 1 trial in patients with advanced solid tumors.