Shares of Sorrento Therapeutics Inc (NASDAQ:SRNE) are up big in late morning trading today after FBR Capital initiated the stock at an ‘Outperform’ rating. In addition to the positive rating they have set a price target which is nearly 250% higher than the current share price today. With the stock trading down over 65% from the middle of the year, investors seem to be viewing this recent ratings report as a positive for the stock, gobbling shares up from the open.
“We are initiating coverage of Sorrento Therapeutics, Inc. (SRNE) with an Outperform rating and a 12-month price target of $22 per share, which is based on the NPV of our probability-adjusted global sales forecasts for the company’s anti-CEA CAR T product candidate for adenocarcinoma liver metastases, resiniferatoxin (RTX) for the treatment of intractable cancer pain, and other early-stage product candidates. Sorrento is developing several other products for oncology in various categories, including biosimilar/biobetter monoclonal antibodies (mAbs), proprietary mAbs, bispecific antibodies (BsAbs), antibody drug conjugates (ADCs), a human anti-PDL1 drug, and Chimeric Antigen Receptor Tumor-attacking Neukoplasts (CAR.TNKs). Sorrento also has several collaborations with Dr. Patrick Soon-Shiong’s NantWorks affiliate companies. It has joint ventures with NantCell for mAbs and CAR.TNKs and NantBioScience for targeted small molecules. It has equity stakes in those two private companies and in publicly traded NantKwest, with which it also has a mutually exclusive partnership on CAR.TNKs. Sorrento has many opportunities, and while data for the company’s various products has been limited, we believe the potential for success is great.”
The stock is currently trading higher by 17.54% or $1.37 following the positive news, hitting $9.18 per share at the time of us publishing this article. About 735,521 shares traded hands or up 85.06% from the average. SRNE has declined 42.36% since May 19, 2015 and is currently downtrending. It has underperformed the S&P500 by 40.10%.
From a total of 5 analysts covering Sorrento Therapeutics (NASDAQ:SRNE) stock, 5 rate it a “Buy”, 0 a “Sell”, and 0 a “Hold”. This means that 100% of the ratings are positive. The highest target price is $45.0 while the lowest target price is $15. The mean of all analyst targets is $30.80 which is 235.51% above today’s ($9.18) stock price. Sorrento Therapeutics was the topic of 6 analyst reports since July 29, 2015 according to the firm StockzIntelligence Inc. H.C. Wainwright initiated shares on December 7 with a “Buy” rating. Brean Capital maintained SRNE stock in a recent report from November 25 with a “Buy” rating. Finally, MLV reinitiated the stock with a “Buy” rating in a report they issued on an August 3.
The institutional sentiment decreased to 1.37 in Q2 2015. It’s down 0.16, from 1.53 in 2015Q2. The ratio turned negative, as 16 funds sold all their Sorrento Therapeutics Inc shares they owned while 22 reduced their positions. 27 funds bought stakes while 25 increased their total positions. Institutions now own 13.72 million shares which is 5.19% more than the previous share count of 13.05 million in 2015Q2.
Wildcat Capital Management Llc holds 5.36% of its total portfolio in Sorrento Therapeutics Inc, equating to 1.71 million shares. Venbio Select Advisor Llc owns 2.15 million shares representing 4.69% of their total US portfolio. Moreover, Cormorant Asset Management Llc has 2.81% of their total portfolio invested in the company, equating to 2.10 million shares. The California-based Longwood Capital Partners Llc has a total of 1.46% of their portfolio invested in the stock. Alpinvest Partners B.V., a Netherlands-based fund reported 86,540 shares owned.
Sorrento Therapeutics, Inc. is a biopharmaceutical company. The company has a market cap of $306.31 million. The Firm is engaged in the discovery, acquisition, development and commercialization of drug therapeutics for addressing unmet medical needs in the United States, Europe, as well as international markets. It currently has negative earnings. The Company’s primary therapeutic focus is oncology, including the treatment of chronic cancer pain, but it is also developing therapeutic products for other indications, including immunology and infectious diseases.