Relypsa Inc (RLYP) Shares Down Big — Why?

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Relypsa Inc (NASDAQ:RLYP) shares are tumbling this morning, bucking the trend of the general pharmaceutical space with out any major news to cause the price decline. Shares may have been overbought as the stock has risen considerably over the last month. The stock exploded on Friday from around $22 a share to over $29, following rumors that Merck & Co., Inc. (MRK) will be making a buyout offer, meaning that profit taking is likely ocurring. It will be interesting to watch throughout the remainder of the trading day to see if the stock rebounds once the profit-takers sell out. The stock is down 6.62% or $1.93 following the news, hitting $27.21 per share. Approximately 670,176 shares traded hands. RLYP shares have declined 6.21% since May 4, 2015 and are currently downtrending. It has underperformed the S&P500 by 5.13%.

From a total of 7 analysts covering Relypsa (NASDAQ:RLYP) stock, 6 rate it a “Buy”, 1 a “Sell”, and 0 a “Hold”. This means that 86% of the ratings are positive. The highest target price is $75 while the lowest target price is $15. The mean of all analyst targets is $47.80 which is 75.67% above today’s ($27.21) stock price. Relypsa was the topic of 9 analyst reports since July 30, 2015 according to the firm StockzIntelligence Inc. Guggenheim initiated shares on November 5 with a “Buy” rating. Morgan Stanley initiated shares with a”Underweight” rating and a $15 target share price in their report from an August 13. Wedbush maintained RLYP stock in a recent report from October 22 with a “Outperform” rating. Finally, Citigroup initiated the stock with a “Buy” rating in a report they issued on a September 3.

The institutional sentiment decreased to 2.28 in Q2 2015. It’s down 0.28, from 2.56 in 2015Q1. The ratio fall, as 13 funds sold all their Relypsa Inc shares they owned while 26 reduced their positions. 29 funds bought stakes while 60 increased their total positions. Institutions now own 35.59 million shares which is 0.00% more than the previous share count of 35.58 million in 2015Q1.

New Leaf Venture Partners L.L.C. holds 4.85% of its total portfolio in Relypsa Inc, equating to 221,204 shares. Great Point Partners Llc owns 240,000 shares representing 3.1% of their total US portfolio. Moreover, Perceptive Advisors Llc has 2.27% of their total portfolio invested in the company, equating to 1.14 million shares. The New York-based Orbimed Advisors Llc has a total of 2.05% of their portfolio invested in the stock. Jhl Capital Group Llc, a Illinois-based fund reported 825,000 shares owned.

Since March 5, 2015, the stock had 1 buying transaction, and 13 sales for a total of $4.88 million in net activity. Orbimed Advisors Llc bought 500,000 shares worth $6.28M. Ball Kristine M sold 646 shares worth $14,832. Lockey Claire sold 522 shares worth $12,888. Stahl Wilhelm sold 522 shares worth $12,894. The insider Orwin John A sold 5,000 shares worth $124,183.

Relypsa, Inc. is a biopharmaceutical firm focused on the development and commercialization of non-absorbed polymeric drugs to treat disorders in the areas of renal, cardiovascular and metabolic diseases. The company has a market cap of $1.13 billion. The Company’s lead product candidate, Patiromer for Oral Suspension is for the treatment of hyperkalemia, a life-threatening condition defined as abnormally elevated levels of potassium in the blood. It currently has negative earnings. The Company’s New Drug Application (NDA) for Patiromer FOS was accepted for filing by the United States Food and Drug Administration, or FDA.

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