Shares of LENZ Therapeutics, Inc. (NASDAQ: LENZ) experienced an impressive rise of 11.5% on Tuesday, November 7, 2023, driven by significant insider buying activity. The stock reached a peak trading price of $25.49 before closing at $25.86, marking a notable increase from its previous closing price of $23.19. During mid-day trading, approximately 779,983 shares changed hands, representing a substantial 72% increase in volume compared to the average daily trading volume of 453,518 shares.
The uptick in share price followed a transaction by James W. McCollum, a director at LENZ Therapeutics, who acquired 10,500 shares at an average price of $22.79 per share, totaling $239,295. This purchase signifies a notable commitment to the company, as McCollum’s holdings increased to a total of 10,500 shares. This transaction was disclosed in a legal filing with the Securities and Exchange Commission.
In a similar move, Daniel R. Chevallard, the Chief Financial Officer, purchased 2,198 shares at an average price of $22.76, resulting in a total expenditure of $50,026.48. Following this acquisition, Chevallard holds 5,386 shares, representing a 68.95% increase in his position.
Analysts Adjust Price Targets
In the wake of these developments, several analysts have revised their price targets for LENZ Therapeutics. Piper Sandler set a new target of $67.00 with an “overweight” rating, while Citigroup raised its target price from $45.00 to $49.00, maintaining a “buy” rating. Similarly, Raymond James Financial increased its price target from $40.00 to $50.00, reinforcing an “outperform” rating.
Despite the positive outlook from many analysts, Weiss Ratings has retained a “sell” rating with a score of D-. Overall, MarketBeat.com reports that LENZ Therapeutics holds an average rating of “Moderate Buy” from analysts, with a consensus target price of $56.40.
Company Performance and Financials
LENZ Therapeutics, which is based in Del Mar, California, focuses on developing therapies aimed at improving vision. The company recently reported its earnings results on November 5, 2023. During this quarter, LENZ Therapeutics posted earnings of ($0.59) per share, surpassing analyst expectations of ($0.67) by $0.08. The firm generated revenue of $12.50 million, significantly exceeding analyst estimates of $4.64 million. Analysts forecast that the company will report an average of ($2.18) earnings per share for the current year.
Institutional trading has also been notable, with various investors recently adjusting their holdings in LENZ Therapeutics. For example, Vanguard Group Inc. increased its stake by 1.8% in the first quarter, now owning 1,199,462 shares valued at approximately $30.8 million. Other institutions, such as Westfield Capital Management Co. LP and Nuveen LLC, have also made significant investments in LENZ Therapeutics.
As of now, institutional investors control 54.32% of the company’s stock, indicating strong confidence in its future prospects. The company has a market capitalization of $811.35 million, a price-to-earnings ratio of -12.24, and a beta of 0.46, reflecting its relative stability compared to the broader market.
LENZ Therapeutics continues to innovate within the biopharmaceutical landscape, particularly with its product candidates, LNZ100 and LNZ101, which are currently in Phase III clinical trials targeting presbyopia. As the company progresses, market observers will be keen to see how these developments translate into long-term performance.
