Galena Biopharma Inc (GALE) Stock Falls on Announcement of Secondary Offering

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Galena Biopharma Inc (NASDAQ:GALE) shares are down big today after the company announced plans for a secondary stock offering.

With Raymond James & Associates hired as the sole book-running manager for the offering, Galena Biopharma Inc (NASDAQ:GALE) say they hope to raise enough funding to help pay for a Phase 3 PRESENT study, which is currently ongoing, as well as other clinical trials in the future for other products. No terms of the secondary offering have been announced, as we still do not know how many shares will be made available nor the price at which the shares will be offered at. We will continue to follow this story as more news comes about.

The stock is down 27.91% or $0.36 following the news, hitting $0.93 per share. About 3.50M shares traded hands or 269.41% up from the average. GALE has declined 27.93% since June 3, 2015 and is downtrending. It has underperformed the S&P500 by 22.08%.

From a total of 6 analysts covering Galena Biopharma (NASDAQ:GALE) stock, 5 rate it a “Buy”, 0 a “Sell”, and 1 a “Hold”. This means that 83% of the ratings are positive. The highest target price is $6 while the lowest target price is $3. The mean of all analyst targets is $4.75 which is 410.75% above today’s ($0.93) stock price. Galena Biopharma was the topic of 9 analyst reports since August 7, 2015 according to the firm StockzIntelligence Inc. Maxim Group maintained shares on December 22 with a “Buy” rating. Raymond James initiated shares with a”Outperform” rating and a $3 target share price in their report from a September 9. Oppenheimer upgraded GALE stock in a recent report from November 12 to a “Outperform” rating. Finally, TH Capital maintained the stock with a “Buy” rating in a report they issued on a November 10.

The institutional sentiment decreased to 0.71 in Q2 2015. It’s down 0.72, from 1.43 in 2015Q2. The ratio dropped, as 18 funds sold all their Galena Biopharma Inc shares they owned while 24 reduced their positions. 8 funds bought stakes while 22 increased their total positions. Institutions now own 31.02 million shares which is 11.17% more than the previous share count of 27.90 million in 2015Q2.

Hoxton Financial Inc. holds 0.04% of its total portfolio in Galena Biopharma Inc, equating to 50,000 shares. Dumont & Blake Investment Advisors Llc owns 30,675 shares representing 0.03% of their total US portfolio. Moreover, Group One Trading L.P. has 0.03% of their total portfolio invested in the company, equating to 1.26 million shares. The Rhode Island-based Compton Capital Management Inc Ri has a total of 0.01% of their portfolio invested in the stock. Ladenburg Thalmann Financial Services Inc, a Florida-based fund reported 154,369 shares owned.

Galena Biopharma, Inc. is a biopharmaceutical company. The company has a market cap of $218.98 million. The Firm is focused on developing and commercializing targeted oncology therapeutics. It currently has negative earnings. The Company’s development portfolio ranges from mid- to late-stage clinical assets, including immunotherapy program led by its lead product NeuVax , which is in Phase III clinical trial and is a targeted cancer immunotherapy.

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