Adherex Technologies Faces Downgrade as Analysts Reassess Stock

Shares of Adherex Technologies (NASDAQ:FENC) received a downgrade from a buy to a hold rating by Wall Street Zen in a research report published on October 8, 2023. This shift reflects a growing caution among analysts regarding the company’s stock performance. Other investment firms have also reassessed their positions on Adherex, indicating a mixed outlook for the biopharmaceutical company.

In a report released the same week, Weiss Ratings reiterated a “sell (d-)” rating for Adherex Technologies. Conversely, Craig Hallum raised their price target from $13.00 to $14.00 while maintaining a “buy” rating, demonstrating a degree of confidence in the stock’s potential. Meanwhile, Zacks Research lowered its rating from “hold” to “strong sell” on October 14. HC Wainwright reaffirmed a “buy” rating with a price target of $13.00 on August 21.

Overall, one analyst has rated the stock as a Strong Buy, three have assigned a Buy rating, while two analysts have issued a Sell rating, according to data from MarketBeat.com. The consensus rating stands at “Moderate Buy” with an average price target of $13.33.

Recent Earnings Report and Stock Performance

Adherex Technologies released its latest earnings results on August 14, 2023, reporting a loss of $0.11 earnings per share (EPS), which fell short of analysts’ expectations by $0.05. The company’s revenue for the quarter reached $9.76 million, exceeding the anticipated $9.52 million. Analysts predict that Adherex will post an EPS of -0.11 for the current fiscal year.

Insider trading activity has also been notable. On October 6, Rosty Raykov, a director at Adherex, sold 10,000 shares at an average price of $9.78, totaling $97,800. Following this transaction, Raykov retained 82,501 shares, valued at approximately $806,859.78, representing a decrease of 10.81% in his holdings.

Additionally, Southpoint Capital Advisors LP sold 26,900 shares on October 7 at an average price of $9.59, accumulating $257,971 from the transaction. After this sale, the major shareholder held 4,050,314 shares, valued at around $38,842,511.26, a decrease of 0.66% in their position. In the past 90 days, insiders have sold 88,889 shares valued at $831,426, with insiders currently owning 10.98% of the stock.

Institutional Investor Activity

Adherex Technologies has seen increased interest from institutional investors recently. AIGH Capital Management LLC acquired a new stake worth approximately $2,199,000 in the first quarter. Other firms such as Nuveen LLC, AQR Capital Management LLC, and Jane Street Group LLC also made new investments during the same period, with stakes worth approximately $158,000, $66,000, and $90,000, respectively. Institutional ownership of Adherex Technologies currently stands at 55.51%.

Adherex Technologies focuses on developing products aimed at treating cancer, with its lead candidate being Sodium Thiosulfate. This product has completed Phase III clinical trials for preventing cisplatin-induced hearing loss in children, highlighting the company’s significant contributions to oncology.

Investors and stakeholders will be closely monitoring further developments and performance indicators as Adherex navigates its current market position.